Veejay Monderondo
The Bangko Sentral ng Pilipinas (BSP) has limited daily cash withdrawals to P500,000, citing risks of money laundering and terrorism financing associated with it.
In Circular No. 1218 released on September 18, the BSP noted abuses in cash-based transactions.
“The Bangko Sentral ng Pilipinas (BSP), in its latest sectoral risk assessment and surveillance monitoring, has noted money laundering, terrorism financing, and proliferation financing risks arising from cash transactions of banks and other BSP-supervised financial institutions (BSFls). These disclosed the use and abuse of cash-based transactions to move illicit funds into and out of the financial system. Accordingly, the BSP recognizes the need to further reinforce measures to deter the use of cash for illicit activities and promote the integrity of the financial system,” BSP wrote in the circular.
The central bank also said that transactions beyond P500,000 must be done through legitimate, traceable channels.
BSP also ordered BSFIs to exercise enhanced due diligence (EDD) for legitimate transactions exceeding P500,000
“BSFIs may, after the exercise of EDD, allow large value payouts in cash of more than P500,000 or its equivalent in foreign currency, provided that the customer can submit additional identification information and/or proof of legitimate business purpose or transaction,” they stated.
The move was part of BSP’s efforts to adapt in emerging risks of financial crime.
It is also expected to push both individuals and businesses toward digital channels, in line with the central bank’s digitalization agenda.
