Cash withdrawals of up to ₱1 million will no longer trigger enhanced due diligence (EDD) checks for anti-money laundering monitoring, raising the previous threshold of ₱500,000.

The change was implemented through Bangko Sentral ng Pilipinas (BSP) Circular No. 1230 issued on Feb. 27, following consultations with banks and industry groups and a review of the country’s latest anti-money laundering risk assessment.

The additional requirements, known as EDD, were first introduced in September 2025 under BSP Circular No. 1218, which set the ₱500,000 threshold as part of efforts to curb money laundering and other illicit financial activities.

The BSP said the adjustment aims to better align monitoring rules with legitimate banking activity while preserving safeguards against illicit financial transactions.

“The increase follows consultations with banks and industries, which showed a large number of legitimate cash transactions above the original threshold,” the BSP said in a statement.

These transactions included payroll releases, loan proceeds and project-based disbursements, which frequently exceeded the ₱500,000 limit set in September 2025.

Under the new rule, cash withdrawals exceeding the ₱1 million threshold will trigger EDD, requiring customers to provide additional identification documents or proof that the transaction is legitimate.

The BSP said the change was also informed by findings from the latest anti-money laundering National Risk Assessment and surveillance monitoring, which underscored the need for a risk-based approach in monitoring cash transactions.

“Robust risk-based safeguards over cash transactions remain essential to protecting financial system integrity,” the central bank said.

The circular also allows BSP-supervised financial institutions to impose lower thresholds depending on their internal risk assessment or a customer’s financial profile.

For clients who regularly conduct large transactions, the EDD requirement may be applied per customer rather than per individual transaction, according to the BSP.

The BSP clarified that the threshold applies only to cash withdrawals, noting that no limits currently apply to non-cash withdrawals.

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