Banks have started enforcing new limits on large cash withdrawals and payouts in line with the Bangko Sentral ng Pilipinas (BSP)’s latest directive aimed at curbing money laundering and promoting traceable transactions.
In a customer advisory, BDO Unibank Inc. said that starting Oct. 7, cash withdrawals of over P500,000 per banking day, or its equivalent in foreign currency equivalent, would require additional documents in compliance with BSP Circular 1218.
Under the circular, financial institutions must cap large-value cash transactions at P500,000 unless the amount is processed through traceable channels.
The new rule, approved by the Monetary Board on Sept. 18 and taking effect in early October, requires enhanced due diligence (EDD) for customers seeking to withdraw or encash beyond the P500,000 threshold.
These clients must present valid identification and proof of legitimate business purpose, such as documentation for hospital bills or supplier payments.
Bank of the Philippine Islands (BPI) announced that starting Oct. 4, customers who need to withdraw more than P500,000 would be asked to provide a valid ID and supporting documents.
‘Customers will be asked to submit additional identification information and/or proof of a legitimate business purpose for large cash out transactions exceeding P500,000,’ BPI said.
Metropolitan Bank and Trust Co. (Metrobank) said the new rule seeks to ‘promote secure and transparent banking,’ noting that single or multiple withdrawals are now capped at P500,000 per banking day.
‘Large value cash transactions or withdrawals above P500,000 or its equivalent in foreign currency must be processed only through traceable channels, such as check payments, fund transfers or digital platforms,’ Metrobank said.
It added that clients might be asked to provide identification or other supporting papers to verify the purpose of the transaction.
Other lenders such as the Philippine National Bank (PNB), Bank of Commerce and Union Bank of the Philippines have also issued advisories to customers outlining compliance procedures.
PNB reminded depositors to notify branches two banking days in advance for over-the-counter cash withdrawals above P500,000 and to submit supporting documents, while BankCom stressed that withdrawals exceeding the limit ‘may require enhanced verification’ and proof of fund source.
UnionBank likewise said that ‘withdrawals above P500,000 would now be subject to EDD procedures’ and urged clients to use traceable alternatives such as online fund transfers and digital payments.
According to the BSP, the new policy was introduced after risk assessments found that cash-based transactions remain vulnerable to money laundering, terrorism financing and other illicit fund flows.
By requiring stricter checks and documentation, regulators aim to promote transparency and preserve the integrity of the financial system.
The central bank said the regulation covers both banks and other BSP-supervised financial institutions. Violations or suspicious activities must be reported through suspicious transaction reports.
The policy, however, has drawn mixed reactions online. Several social media users, particularly small business owners, expressed frustration over the stricter requirements and said that the P500,000 daily cash limit could disrupt operations and delay payments to suppliers.
Others described the need to submit additional documents as ‘a hassle,’ noting that many legitimate businesses still rely heavily on cash transactions for day-to-day expenses.