The Bangko Sentral ng Pilipinas (BSP) has doubled the threshold for cash withdrawals that trigger mandatory enhanced due diligence to ease the regulatory burden on legitimate business operations while maintaining the focus on high-risk financial activity.

Under Circular No. 1230, signed Feb. 27, 2026, the central bank raised the limit to ₱1 million from the previous ₱500,000. 


According to the BSP, the adjustment follows extensive consultations with banking and industry leaders, who reported that the original ceiling frequently caught routine, high-volume transactions such as payroll disbursements, loan releases, and project-based payments.

By lifting the limit, the BSP said it aims to streamline processes for regular depositors without compromising the broader integrity of the domestic financial system.

The BSP noted that the revised threshold is supported by the latest National Risk Assessment on anti-money laundering and ongoing surveillance monitoring. While the central bank is loosening the immediate trigger for scrutiny, it maintains that robust, risk-based safeguards remain essential to shield the Philippine economy from illicit flows.

Crucially for commercial operations, the regulator clarified that for entities or individuals with recurring large-scale cash needs, enhanced due diligence will be conducted on a per-customer basis rather than per transaction. This distinction is intended to prevent operational bottlenecks for companies that move significant amounts of cash as part of their daily business model.

While the new ₱1 million floor provides a standardized baseline, the BSP noted that BSP-supervised financial institutions (BSFIs) retain the autonomy to set stricter internal limits.

Consistent with risk-based principles, individual banks may adopt lower thresholds if their internal assessments identify specific sectors or clients as posing a higher risk of money laundering or terrorist financing.

The previous ₱500,000 limit was implemented in September as part of an aggressive push to bolster the nation’s financial oversight and curb the facilitation of illegal activities.

Since then, the central bank has balanced the need for strict monitoring against the practicalities of a cash-reliant economy.

The regulator also confirmed that no such thresholds or enhanced reporting requirements currently apply to non-cash withdrawals, such as digital transfers or check payments.