The Bangko Sentral ng Pilipinas (BSP) has increased the cash withdrawal threshold that triggers enhanced due diligence (EDD) to ₱1 million, doubling the previous ₱500,000 limit in a move aimed at sharpening oversight on higher-risk transactions while easing the process for legitimate fund withdrawals.
Under BSP Circular No. 1230, issued on February 27, 2026, the new threshold reflects consultations with banks and industry stakeholders, which revealed that a significant volume of routine, lawful transactions—such as payroll distributions, loan releases, and project-based disbursements—were being flagged under the earlier cap.
The central bank said the adjustment aligns with findings from the latest anti-money laundering National Risk Assessment and ongoing surveillance monitoring. While maintaining that strong risk-based safeguards remain critical to protecting the integrity of the financial system, the BSP emphasized the need to strike a balance between vigilance and operational efficiency.
For individuals and businesses with recurring high-value transactions, enhanced due diligence will continue to be applied on a per-customer basis rather than per transaction—ensuring that legitimate, established banking relationships are not unnecessarily disrupted.
Under the revised rules, depositors may withdraw up to ₱1 million in cash without triggering EDD. Withdrawals exceeding that amount will require documentation to establish the legitimacy of the transaction. However, consistent with risk-based customer due diligence principles, BSP-supervised financial institutions may still impose lower thresholds depending on their internal risk assessments.
The original ₱500,000 threshold was introduced in September 2025 under Bangko Sentral ng Pilipinas Circular No. 1218 as part of broader efforts to curb money laundering and prevent illicit financial flows. Notably, the BSP clarified that there remain no thresholds for non-cash withdrawals.
The amendment signals a calibrated approach—tightening scrutiny where risks are elevated, while reducing friction for legitimate economic activity. For the full text of Circular No. 1230, visit the BSP website.