The Central Bank of the Philippines issued a memorandum clarifying the enhanced due diligence (EDD) requirements under its large-value cash transaction regulation, directing BSP-supervised financial institutions (BSFIs) to conduct EDD for cash withdrawals exceeding PHP 500,000 on a per-customer basis rather than a per-transaction basis. The clarification states that EDD should cover the customer’s usual business transactions. BSFIs may apply streamlined EDD depending on the customer’s risk profile, nature of business or operations, and transaction patterns, including for bank-to-bank transactions such as inter-branch or inter-bank cash requirements and loan disbursements. For cash payouts or withdrawals during declared calamities or emergencies, certification from the head of agency may be obtained, while more rigorous EDD should be applied when transactions deviate from expected customer behavior or present heightened risks. BSFIs are also instructed to ensure EDD procedures do not unduly delay legitimate transactions by streamlining processes and providing targeted training to branch personnel to support consistent and efficient implementation.
Central Bank of the Philippines 2026-02-06
Central Bank of the Philippines clarifies that enhanced due diligence for PHP 500,000 cash withdrawals applies per customer under large-value cash transaction rules
The Central Bank of the Philippines clarified enhanced due diligence (EDD) for large-value cash transactions, mandating EDD for withdrawals over PHP 500,000 per customer. Financial institutions may streamline EDD based on customer risk profiles and transaction patterns, with additional measures for deviations or heightened risks. Institutions must ensure EDD does not delay legitimate transactions, supported by streamlined processes and targeted staff training.