Philippines tightens rules on withdrawals over Ph500,000 to fight corruption

Manila, Philippines: The Bangko Sentral ng Pilipinas (BSP) has rolled out new rules limiting large cash transactions as part of a sweeping campaign against corruption and money laundering. The measure, announced in Circular No. 1218, Series of 2025, mandates that any cash withdrawal or payout above Ph500,000 (around $8,750) in a single day triggers enhanced due diligence (EDD) requirements for banks and other financial institutions.

According to the BSP, large transactions will need to be processed through traceable channels such as cheques, digital transfers, direct account credits, or other electronic payment methods. Customers who still require cash for legitimate business purposes will be asked to submit supporting documentation, including valid IDs and proof of purpose, before banks approve such withdrawals.

This policy comes amid a nationwide crackdown on alleged misuse of public funds, particularly in flood control and climate-related infrastructure projects. More than 100 bank accounts linked to contractors and public officials have been frozen in recent weeks as part of ongoing investigations. President Ferdinand Marcos Jr. has established an independent commission to oversee probes and promised “no one will be spared” if wrongdoing is proven.

Financial analysts say the move signals a stronger regulatory push toward digital payments and more transparent cash flows. Business groups have welcomed the measure but warned that firms with cash-heavy operations may face additional compliance burdens and should prepare by digitizing their payment processes.

The new rules will take effect 15 days after publication in the Official Gazette or a newspaper of general circulation, giving banks and businesses a short window to adjust.