MANILA (Xinhua): The Philippine central bank (BSP) has tightened regulations on large-value cash transactions to curb money laundering, as the government investigates alleged corruption in flood-control and other infrastructure projects.
Under a new circular issued on Thursday, cash transactions above 500,000 pesos (US$8,756) must go through traceable channels such as checks, online transfers, or digital payments.
Withdrawals above this limit will require enhanced due diligence, and suspicious transactions must be reported. Banks may also set stricter thresholds based on risk assessments.
The measure followed the Department of Public Works and Highways' request to regulators to freeze the accounts of officials and contractors allegedly involved in anomalous projects.
The bank said the move aims to prevent the use of cash for illegal activities and promote trust in the financial system.
The Philippines has been gripped by a widening corruption scandal over flood-control and other infrastructure projects, spurring public anger. - Xinhua
