Banks start cap on large cash withdrawals

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.

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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.