Risk-based Recalibration of Enhanced Due Diligence (EDD) Threshold for Large Value Cash Transactions
Executive Summary
On 26 February 2026, the Monetary Board, through Resolution No. 153, approved amendments to the regulations on large value cash transactions. Bangko Sentral ng Pilipinas (BSP) issued BSP Circular No. 1230, which recalibrates the Enhanced Due Diligence (EDD) trigger threshold for large value cash payouts due to risks related to money laundering (ML), terrorism financing (TF), and proliferation financing (PF).
The Circular amends Section 923/923‑Q of the Manual of Regulations for Banks (MORB) and the Manual of Regulations for Non‑Bank Financial Institutions (MORNBFI) to update the risk‑based EDD requirements applicable to Bangko Sentral‑supervised financial institutions (BSFIs).
Amendments Under BSP Circular No. 1230
Note: Last February 10, TSQC released an Accounting Alert about Clarifications on the Implementation of BSP Circular 1218 (Based on Memorandum No. M‑2026‑005), which still mentioned ₱500,000 as threshold.
BSP Circular No. 1230 now supersedes BSP Circular No. 1218 Section 1 with respect to the EDD threshold, raising it from ₱500,000 to ₱1,000,000 (or its equivalent in foreign currency), whether conducted in a single transaction or in multiple transactions within one banking day.
Please refer to the PDF file below for further guidance.
To explore additional BSP Issuances referenced in this alert or to access related regulatory issuances, you may also visit Bangko Sentral ng Pilipinas - Regulations for more comprehensive guidance.
