Philippines central bank suspends cash withdrawal due diligence threshold through January

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Philippines bank suspends cash withdrawal threshold

Highlights

Bangko Sentral ng Pilipinas suspends the P1-million enhanced due diligence threshold for large cash withdrawals until Jan. 31, 2027, to accommodate higher holiday cash demand.
Banks must still apply anti-money laundering and counter-terrorism measures and monitor suspicious transactions despite the suspension of the due diligence threshold.
The policy change follows a third-quarter GDP growth slowdown to 2.1%, with household consumption rising only 2.4%, its weakest pace since early 2021.

Holiday cash access policy and compliance rules

As reported by BusinessWorld Online, the Bangko Sentral ng Pilipinas said in a memorandum signed by Governor Eli M. Remolona, Jr. that it is suspending the P1-million threshold that normally triggers enhanced due diligence for large-value cash withdrawals during the holiday season.

The central bank said the move is intended to support legitimate cash transactions amid an anticipated increase in economic activity and public cash requirements. The temporary relief runs until Jan. 31, 2027.

The threshold forms part of BSP Circular No. 1230, which requires risk-based enhanced due diligence when withdrawals exceed the set limit. In a Feb. 27 circular, the BSP raised that threshold to P1 million and allowed BSP-supervised financial institutions to impose lower levels when justified by risk.

Banks may still require valid identification and supporting documents for transactions that warrant closer review. The BSP also said clients who need to undergo enhanced due diligence only have to submit supporting documents once, in an effort to make regular transactions more efficient.

Banking oversight and economic backdrop

The central bank said BSP-supervised financial institutions must continue to apply anti-money laundering, countering terrorism financing and proliferation financing measures throughout the suspension period. It directed banks and other financial institutions to monitor transactions closely, report suspicious activity under existing laws and avoid unnecessary delays in legitimate large-value cash withdrawals.

The temporary suspension follows tighter cash withdrawal controls introduced in September 2025, when the BSP set a daily withdrawal limit after finding that banks had facilitated large cash withdrawals by private contractors allegedly linked to money laundering and corruption in the flood control scandal. Under that circular, up to P500,000, or its foreign-currency equivalent, may be withdrawn in a single transaction or through multiple transactions within one banking day.

The policy adjustment also comes as the economy slows. Gross domestic product expands by 2.1% in the third quarter, described in the report as a new post-pandemic low, while household consumption, a key growth driver, grows by 2.4%, its weakest pace since the 4.8% contraction in the first quarter of 2021.

Previously, we outlined the main factors behind an appeals court asset freeze tied to an AMLC corruption probe.

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