The Bangko Sentral ng Pilipinas (BSP) has issued Circular No. 1218, known as the Regulation on Large Value Cash Transactions, which took effect on October 3, 2025.
This new regulation aims to promote financial transparency and strengthen the integrity of the Philippine monetary system.
What the Circular says
Under BSP Circular 1218, all cash withdrawals and check encashments exceeding PHP500,000 (or its equivalent in foreign currency) are now subject to additional verification and documentation.
Hence, individuals or businesses conducting these transactions, either in a single transaction or multiple transactions within the same banking day, must present:
- A valid government-issued ID, and/or
- A valid reason for the transaction, supported by relevant documents, such as hospital or medical bills, supplier invoices, or purchase receipts, and business or operational expense documents.
These measures are designed to ensure that large cash movements are correctly documented and legitimate.
Recommended Channels for Safer Transactions
Additionally, the BSP encourages the public to use traceable, non-cash mediums to minimize the risks associated with handling large amounts of cash, such as the following:
- Checks
- Electronic Fund Transfers
- Direct credit to deposit accounts
- Digital payment platforms
Using these channels not only improves security but also provides clear transaction records that help protect both consumers and financial institutions
Why it matters
The implementation of the BSP circular is part of the government’s step towards ensuring transparency, preventing heinous financial crimes, and strengthening compliance with banking establishments.
For the general public, being aware of the new documentation requirements before conducting large cash transactions can help avoid delays or rejections at the over-the-counter.
We encourage everyone to stay informed about these regulations and to adopt safe, traceable methods for high-value transactions.
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