BSP Imposes PHP500K-Ceiling for Large Value Cash Transactions

The Bangko Sentral ng Pilipinas has issued Circular No. 1218, series of 2025 regulating large value cash transactions to reduce the use of cash for money laundering and other illicit activities and promote the integrity of the country’s financial system.

 

Large value payouts of more than Five Hundred Thousand Pesos (PHP500,000.00), or its equivalent in foreign currency, shall only be made through traceable channels such as check payment, fund transfer, direct credit to deposit accounts, and/or other form using the digital payment platform of BSP-supervised Financial Institutions (BSFIs). Such limit may be carried out in a single transaction or series of transactions within one (1) banking day.

 

BSFIs are mandated to conduct enhanced due diligence (EDD) measures for cash transactions exceeding the transaction limit. 

 

If a BSFI fails to complete the EDD procedures, or reasonably believes that the EDD process will tip-off the customer, it shall file a suspicious transaction report (STR), monitor the account, and review the business relationship. In filing STRs, BSFIs  shall also take into account red alerts, red flags, and suspicious indicators over large or unusual cash transactions noted by other government agencies.

 

However, large value transactions exceeding PHP500,000.00 or its equivalent foreign currency may still be allowed, provided that the BSFIs exercised the EDD procedure, and that the customer can submit additional identification information and/or proof of legitimate business purpose or transaction.

 

The full text of the Circular may be read here.

 

 

Photo credits:

Photo by Roman Synkevych on Unsplash

Published on April 20, 2019

Canon, EOS 6D

Free to use under the Unsplash License