Regulatory Alerts2025-10-30
Frequently Asked Questions on Large Value Cash Transactions under BSP Circular 1218 Series of 2025
The Bangko Sentral ng Pilipinas issued FAQs to clarify BSP Circular No. 1218, which mandates Enhanced Due Diligence for cash transactions exceeding Php500,000 to mitigate money laundering and terrorism financing risks. The regulation applies to the aggregate of cash payouts within a single banking day across all currencies and requires financial institutions to implement robust monitoring systems and senior management approval processes. While legitimate access to funds is preserved, institutions must ensure holistic transaction monitoring and may adopt periodic EDD for customers with consistent, low-risk cash withdrawal patterns.
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