The ₱500K trigger: Why the BSP is forcing cash out of the shadows

The Bangko Sentral ng Pilipinas (BSP) has introduced a new regulation on large-value cash transactions, setting a ₱500,000 threshold to strengthen defenses against money laundering and other illicit cash-related risks.

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The central bank issued Circular No. 1218, Series of 2025, on Sept. 18, 2025, mandating that transactions exceeding ₱500,000 (or its equivalent in foreign currency)—whether in a single transaction or a series within one banking day—must be conducted through traceable channels. These channels include checks, online fund transfers, direct credit to deposit accounts, or digital payments.

According to the BSP, the move is designed to fortify the financial system against illicit activities, particularly money laundering. The central bank introduced this measure to ensure that criminals cannot exploit the system to move or hide "dirty money," thereby keeping the financial system stable and making everyone's money safer and more secure.

But the essence of the rule is not a hard limit on withdrawals but rather a regulatory trigger for enhanced scrutiny. The BSP has clarified that the threshold applies specifically to cash withdrawals. This means individuals and businesses retain full access to their funds and can still withdraw amounts exceeding this figure. However, a withdrawal above the threshold now necessitates additional requirements, making it deliberately more difficult to move large sums of money for illegal purposes.

Enhanced requirements for large withdrawals