The Bangko Sentral ng Pilipinas (BSP) has issued a circular limiting large cash transactions to P500,000 to combat money laundering and terrorism financing.
Circular No. 1218, Series of 2025 aims to deter the use of cash for illicit activities and promote the integrity of the financial system, the BSP said.
The BSP said its Monetary Board had approved Resolution 929 to implement restrictions and enhanced due diligence on “large value cash-related payments and transactions.”
It said its latest risk assessment showed money laundering, terrorism financing and proliferation financing risks are rising from cash transactions at banks and other financial institutions it supervises.
The new rules, effective 15 calendar days after publication in the Official Gazette or a newspaper of general circulation, amend the BSP’s Manual of Regulations for Banks and the Manual of Regulations for Non-Bank Financial Institutions.
Under the new regulations, large payouts of more than P500,000, or its foreign currency equivalent, should be made via check, fund transfer, direct credit to a deposit account or other digital payment platforms.
The limit applies to a single transaction or a series of transactions within one banking day.
Financial institutions can adopt a lower cash transaction limit based on their own risk assessment or a customer’s financial profile. However, they can still allow cash transactions exceeding the limit if the customer submits additional identification and/or provides proof of a legitimate business purpose.
If a bank or financial institution cannot complete the due diligence or believes the process would tip off the customer, it should file a suspicious transaction report and closely monitor the account, the BSP said.
