The Bangko Sentral ng Pilipinass (BSP) noted that the cash withdrawal threshold at which a customer must undergo enhanced due diligence has now doubled to PHP1,000,000 ($17,050) with this updated regulation.
BSFIs must implement risk-based anti-money laundering, counter-terrorist financing and counter proliferation financing measures for cash payouts greater than or equal to PHP1 million or its foreign equivalent for all transactions either in total to an individual or in aggregate in one banking day.
The increase in the withdrawal threshold was based on the most recent national risk assessment and surveillance monitoring which identified an ongoing risk of money laundering, terrorist financing and proliferation financing associated with large cash movements. The BSP characterised this change as a data-driven recalibration made to better align the oversight of BSFIs with their actual risk exposure to large cash movements.
Individuals and businesses that regularly have high-value withdrawals will have EDD done at the time of withdrawal rather than the customer level to avoid inconveniences due to EDD processing times when making subsequent cash withdrawals after sufficient review of prior withdrawals.
While the cap for cash withdrawal limits was raised by the BSP, there continues to be stringent compliance standards to follow when conducting EDD. If a financial institution is unable to complete EDD procedures satisfactorily or if conducting those procedures may result in tipping off the customer, the financial institution must continue to file a suspicious transaction report (STR) and continue to monitor the account.
Authorities at the time said the measure aimed to strengthen safeguards against money laundering and prevent misuse of the financial system. The new rule will take effect 15 calendar days after publication in the Official Gazette or a newspaper of general circulation in the Philippines.
