New ₱500K cash cap a success-Remolona

While the Bangko Sentral ng Pilipinas (BSP) moves to ramp up its anti-money laundering system, the central bank chief said the ₱500,000 cash withdrawal limit has so far been a "very effective" measure.

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"I think it's very effective so far. As best we can tell, it's a very effective measure," BSP Governor Eli M. Remolona Jr. told reporters during an Oct. 13 press chat on the central bank's thought leadership in research.

Remolona said the ₱500,000 cap aligns with the reporting threshold for covered transactions, since banks must report any deal at that amount or higher. Beyond these reports, lenders also file Suspicious Transaction Reports (STRs) for cases that warrant closer scrutiny.

"We're looking at it to enhance [the system] and make it easier for us to connect the dots," Remolona said.

According to Remolona, BSP-supervised financial institutions (BSFIs) are supportive of the new regulation, which took effect on Oct. 7, noting that it adds a layer of power for banks in flagging suspicious cash flows.