The Philippines’ central bank has raised the cash withdrawal threshold that triggers enhanced due diligence from PHP500,000 ($8,560) to PHP1 million ($17,120).
The Bangko Sentral ng Pilipinas indicated on Tuesday that a circular from February 27th was aimed at focusing efforts on high-risk activity rather than legitimate and recurring transactions.
“The increase follows consultations with banks and industries, which showed a large number of legitimate cash transactions above the original threshold. These covered payouts, such as payroll, loans, and project-based disbursements,” indicated the BSP, according to the Philippine News Agency.
The initial PHP500K limit was set in the wake of the flooding control projects scandal in September of last year, with the new limit allowing withdrawals of up to PHP1 million without enhanced due diligence.
The measure only applies to cash, with ‘no threshold for non-cash withdrawals’.
The authority notes that financial institutions supervised by the BSP may still impose lower thresholds on reporting based on their own risk assessments. The enhanced due diligence will be applied on a per customer basis for clients with regular large transactions, rather than on a per-transaction basis.
