Manila: The Bangko Sentral ng Pilipinas (BSP) has announced an increase in the cash withdrawal threshold that triggers enhanced due diligence (EDD) from PHP500,000 to PHP1 million.

According to Philippines News Agency, the BSP issued Circular 1230 on February 27 to adjust this limit, focusing on higher-risk activities and streamlining legitimate and recurring transactions. The decision follows consultations with banks and industries, which indicated a significant number of legitimate cash transactions exceeded the original threshold. These transactions include payouts such as payroll, loans, and project-based disbursements.

The increase is also aligned with the findings of the latest anti-money laundering National Risk Assessment and surveillance monitoring. The BSP emphasized the importance of maintaining robust risk-based safeguards over cash transactions to protect the integrity of the financial system.

Under the new circular, depositors can now withdraw up to PHP1 million without undergoing EDD. For withdrawals exceeding this amount, proof of legitimacy is required. However, BSP-supervised financial institutions have the discretion to impose lower thresholds based on their risk assessments. For clients with regular large transactions, the EDD will be applied per customer, rather than per transaction.

The circular amends BSP Circular 1218, which was issued in September 2025, and initially set the PHP500,000 threshold to combat money laundering and prevent illicit financial activities. Notably, there is no threshold for non-cash withdrawals.