THE BANGKO Sentral ng Pilipinas (BSP) clarified that customers can withdraw over P500,000 in cash or its equivalent amount in foreign currency easily and without unnecessary delays, provided they present documents showing the legitimate purpose.
In an advisory, the central bank said customers withdrawing P500,000 or more in cash need only to present documents that indicate the legitimacy of the purpose of withdrawal, such as a deed of sale or a hospital bill, among others.
“The submission and review of said proof, nevertheless, should be straightforward and not unduly delay customers’ access to their funds as these are already part of the BSP-supervised financial institutions’ (BSFIs) existing customer due diligence or know-your-customer process,” read part of the advisory.
Under BSP Circular 1218, withdrawals exceeding the P500,000 threshold shall only be made, facilitated, or transacted through check payment, fund transfer, direct credit to deposit accounts, and/or other forms using the digital platform of the BSFI.
Cash transactions exceeding the threshold are also subject to the conduct of appropriate enhanced due diligence (EDD) measures, such as having the customer submit additional identification information, and/or proof of legitimate business purpose or transaction.
According to BSP Deputy Governor Zeno Abenoja, the central bank is also looking at the possible impact of the circular on economic growth, after former Finance secretary, now Executive Secretary, Ralph Recto reportedly said this was a possible factor behind the slowdown recorded in the third quarter.
Philippine economic growth clocked in at 4.0%, the slowest in four years since the 3.8% recorded in the first quarter of 2021 when the country implemented strict lockdown measures due to the COVID-19 pandemic.
BSP Governor Eli Remolona Jr. in October said the central bank is also looking at implementing caps on fund transfers and allowing banks to refuse suspicious withdrawals, as it seeks to implement more measures that would address the ongoing corruption issues related to government spending on infrastructure projects. (GMA Integrated News)
