Central Bank of the Philippines restricts cash payouts above PHP 500,000 and requires enhanced due diligence for large cash transactions

The Central Bank of the Philippines issued regulations on large value cash transactions for banks and other BSP-supervised financial institutions (BSFIs), introducing restrictions on large cash payouts and requiring enhanced due diligence (EDD) where thresholds are exceeded. Under amendments to the Manuals of Regulations for Banks and for Non-Bank Financial Institutions, large value payouts such as withdrawals of more than PHP 500,000 (or foreign currency equivalent) must generally be made through non-cash channels including check payment, fund transfer, direct credit to deposit accounts, or other forms using the BSFI’s digital payment platform. The PHP 500,000 threshold applies to a single transaction or a series of transactions within one banking day, and BSFIs may set lower limits based on their ML/TF/PF risk assessment and/or the customer’s financial profile. Cash transactions exceeding the set threshold must be subject to EDD, and cash payouts above PHP 500,000 may be allowed after EDD where the customer provides additional identification information and/or proof of legitimate business purpose or transaction; if EDD cannot be completed satisfactorily, or would risk tipping off the customer, the BSFI must file a suspicious transaction report and closely monitor the account and review the business relationship. The circular takes effect 15 calendar days after publication in the Official Gazette or a newspaper of general circulation in the Philippines.