‘BSP cash cap is helpful tool for tracing bribes’

New BSP Cash Cap A Game-Changer in Tracing Bribes and Combating Corruption

The Bangko Sentral ng Pilipinas (BSP) has introduced a landmark measure to combat corruption by capping cash withdrawals at P500,000 per banking day. This significant development aims to reduce the ease with which corrupt individuals can launder funds and facilitate illicit transactions.

Senator Panfilo Lacson, Chair of the Senate Blue Ribbon Committee, has welcomed this move, stating that the new cash cap will make it more challenging for bribe givers to operate undetected. He recalled a notable instance where his committee encountered a cash delivery worth P457 million during an inquiry and noted that under the new policy, someone attempting to pay a P30-million bribe would need to deposit P500,000 every day, making it easier for law enforcement agencies and financial institutions to track the trail.

The BSP's Circular 1218, Series of 2025, requires large-value transactions above the cap to be made through traceable channels such as checks, online transfers, direct credits to accounts, or digital payments. To ensure compliance, banks and other BSP-supervised institutions are mandated to apply enhanced due diligence measures and submit suspicious transaction reports if a client seeks to withdraw beyond the limit.

The introduction of this new policy is expected to have a profound impact on combating corruption in the country. As Senator Lacson emphasized, it will make it more difficult for corrupt contractors or influence peddlers to deliver large volumes of cash to corrupt officials. With this measure in place, law enforcement agencies and anti-corruption efforts can now focus on tracing and prosecuting illicit transactions.

The Impact of the New Policy

The new BSP cash cap is a crucial tool in the fight against corruption and bribery. It demonstrates the Philippine government's commitment to preventing money laundering and combating financial crimes. As the country continues to address issues related to graft and corruption, this measure will undoubtedly play a vital role in ensuring that funds are used for their intended purposes.

Enhanced Due Diligence and Suspicious Transaction Reports

To ensure effective implementation of the new policy, banks and other BSP-supervised institutions are required to apply enhanced due diligence measures and submit suspicious transaction reports if a client seeks to withdraw beyond the limit. This will enable law enforcement agencies to identify and track illicit transactions more efficiently.

Conclusion A Valuable Tool in the Fight Against Corruption

In conclusion, the new BSP cash cap is a valuable tool in the fight against corruption and bribery. It demonstrates the Philippine government's commitment to preventing money laundering and combating financial crimes. As the country continues to address issues related to graft and corruption, this measure will undoubtedly play a crucial role in ensuring that funds are used for their intended purposes.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

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