The Bangko Sentral ng Pilipinas has doubled the cash withdrawal threshold that triggers mandatory documentary checks, raising it from P500,000 to P1 million, and is now clarifying how the updated rules work for ordinary depositors.
The adjustment came after the BSP found that routine financial activity — including payroll releases, loan proceeds, and project-related disbursements — routinely exceeded the old limit, burdening legitimate customers with unnecessary scrutiny.
Under the revised framework, the additional verification process, called enhanced due diligence or EDD, is applied per customer rather than per transaction. A depositor who regularly makes large withdrawals within their normal banking pattern will not automatically trigger a review each time, even if individual withdrawals surpass P1 million.
EDD is activated when a withdrawal carries suspicious characteristics or high-risk indicators — not simply because of the amount involved. When banks do determine that EDD is warranted, they will ask the account holder to provide information establishing that the transaction is legitimate.
Customers with a documented low-risk profile, a clearly defined business purpose, or a consistent history of high-value transactions may also qualify for a simplified verification process.
BSP-supervised financial institutions retain the authority to set a lower threshold than P1 million if their own internal risk assessments require it, meaning the rules may vary between banks.
For digital transactions, withdrawal limits remain governed by each bank’s internal policies and the specific channel used — whether InstaPay, PESONet, or intra- and interbank transfers. Electronic transfers are fully traceable but are not exempt from EDD when risk indicators are present.
The BSP said the checks “are designed to prevent illegal activity and promote the use of traceable and efficient payment channels, such as electronic banking, ultimately protecting both customers and banks or financial institutions.”
