BSP raises due-diligence threshold for cash withdrawal to P1M

The Bangko Sentral ng Pilipinas (BSP) raised the threshold for cash withdrawals that would trigger enhanced due diligence (EDD). This is designed to focus on higher-risk activity while streamlining the process for legitimate and normal cash transactions, including recurring ones.

Under BSP Circular No. 1230, issued on 27 February 2026, the threshold was raised to P1 million from P500,000.00. The increase follows consultations with banks and industries, which showed a large number of legitimate cash transactions above the original threshold. These covered payouts, such as payroll, loans, and project-based disbursements. 
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The increase also follows the results of the latest anti-money laundering National Ri​sk Assessment and surveillance monitoring, recognizing that robust risk-based safeguards over cash transactions remain essential to protecting financial system integrity.

As earlier clarified, for individuals and businesses with regular large transactions, the EDD will be done on a per-customer basis, not per transaction. As such, it should not hamper regular transactions.

Based on the circular, depositors can withdraw up to P1 million without EDD. Above P1 million, they will have to provide information proving their transactions are legitimate. Nevertheless, consistent with risk-based customer due diligence principles, BSP-supervised financial institutions (BSFIs) may adopt lower thresholds based on their own risk assessments.

The BSP imposed ​the P500,000 threshold in September to help curtail money laundering and ensure the financial system is not used to facilitate illicit activities. 

There remains to be no thresholds on non-cash withdrawals. 

The new circular amends BSP Circular No. 1218 issued in September 2025.  

For more details, visit: https://www.bsp.gov.ph/Regulations/Issuances/2026/1230.pdf​​