Compliance Update
Advisory on Large-Value Cash Transactions (BSP Circular 1218)
This guide explains what changes for cash transactions and how Rang-ay Bank can assist you.
- Transactions over ₱500,000 should be done via check, fund transfer, direct credit, or other digital channels.
- Cash above the threshold may be released only after Enhanced Due Diligence (EDD) with sufficient supporting information.
- The threshold can be reached by a single transaction or a series of transactions in one banking day.
- Banks may set lower internal limits based on risk.
If you need more than ₱500,000 in cash
- Coordinate with your branch ahead of time.
- Bring valid IDs and be ready to provide purpose and supporting documents (e.g., payroll, supplier payment, hospital bills).
- Expect EDD checks; if not satisfactorily completed, cash release may be declined and non-cash methods will be recommended.
Reminder: Aggregated same-day transactions can also exceed ₱500,000.
Faster, traceable alternatives
| Option | Use when |
|---|---|
| Manager’s / Personal Check | Paying suppliers, one-off large bills |
| PESONet / InstaPay Transfer | Sending funds to banks/e-wallets (limits/fees may apply) |
| Direct Credit to Deposit Account | Paying individuals or payroll without cash handling |
| Other Digital Payments | When a compliant digital channel is available |
FAQs about BSP Circular 1218
What is the exact threshold for “large-value cash”?
More than ₱500,000 (or foreign currency equivalent). Above this, payouts should use checks, fund transfers, direct credits, or digital platforms.
Does the rule apply to a single big withdrawal only?
No. The ₱500,000 limit can be reached by a single transaction or a series of transactions within one banking day.
Are cash withdrawals above ₱500,000 completely prohibited?
Not absolutely. By default, amounts above the threshold should use non-cash channels. However, a bank may allow cash after it performs Enhanced Due Diligence (EDD) and you provide additional identification and/or proof of a legitimate purpose.
What is “Enhanced Due Diligence (EDD)” and what might be asked?
EDD is a deeper verification process for higher-risk transactions. You may be asked for additional IDs/information and proof of the legitimate business or personal purpose (e.g., payroll lists, billing statements, invoices). Exact requirements vary and will be advised by the branch.
Can the bank set a lower cash limit than ₱500,000?
Yes. Banks may adopt lower internal limits based on their risk assessment and customer profiles.
What happens if EDD can’t be completed or would “tip off” the customer?
The bank must file a Suspicious Transaction Report (STR), closely monitor the account, and review the business relationship. Cash release may be declined.
When does the circular take effect?
It takes effect 15 calendar days after publication in the Official Gazette or a newspaper of general circulation.
Source & Note: This article is a simplified guide. For the full text, see BSP Circular No. 1218 (2025). Branches will advise exact requirements for EDD and release timelines.