The Bangko Sentral ng Pilipinas (BSP) has rolled out a new rule that limits cash withdrawals and payouts to ₱500,000 per day in an effort to combat money laundering and other illegal financial activities.
The regulation, which applies to both single and multiple transactions in a banking day, is meant to encourage the use of non-cash channels such as checks and electronic fund transfers. While the move is seen as a push toward a more cashless economy, it has raised concerns from businesses that depend heavily on cash to pay workers and suppliers.
Still, BSP clarified that those with legitimate needs for large cash transactions can apply for exemptions. Customers seeking exemption must undergo an enhanced due diligence (EDD) process through their bank or financial institution. This involves presenting additional identification, proof of the transaction’s purpose, and verification of the source of funds. The EDD also allows banks to closely monitor the customer’s account and ensure the funds are being used lawfully.
If a bank is unable to complete the due diligence process or suspects wrongdoing, it is required to file a suspicious transaction report (STR) and continue monitoring the account.
