BOT to tighten rules for cash withdrawal deposit exceeds SM THB

BOT to tighten rules for cash withdrawal deposit exceeds SM THB

Bank of Thailand Tightens Cash and Gold Transaction Rules to Combat Illicit Flows

The Bank of Thailand (BOT) has announced stricter measures to monitor large cash withdrawals and gold transactions, aiming to curb "grey" money flows and financial crimes. Under the new framework, commercial banks will be required to flag and report cash withdrawals exceeding 3–5 million baht, with the stated purpose of the withdrawal documented for scrutiny. The threshold, expected to be finalized by late January 2026, is part of broader efforts to enhance transparency and address structural issues related to corruption and illicit business activities.

Governor Vitai Ratanakorn emphasized that unusually large cash transactions—such as withdrawing over 3 million baht to purchase property—would be treated as "suspicious from the outset," given the availability of electronic payment alternatives. Banks will also strengthen customer due diligence (CDD) to identify inconsistencies between a client's financial profile and transaction patterns, such as frequent large withdrawals inconsistent with their occupation.

In parallel, the BOT is introducing tighter oversight of gold transactions. Gold dealers must now report trades exceeding 20 million baht, while a 50 million baht cap will apply to baht-settled gold trading on digital platforms. This cap, effective for new trades, aims to prevent money laundering through gold conversions, a practice previously less regulated compared to stock markets.

Separately, the BOT has implemented a daily transfer limit of 50,000 baht for bank customers to mitigate fraud, particularly targeting vulnerable groups like the elderly and minors. Assistant Governor Daranee Saeju noted that these measures aim to balance consumer protection with legitimate transaction needs, despite potential inconveniences.

These reforms reflect the BOT's commitment to closing financial loopholes and aligning oversight with evolving risks, including digital asset-related fraud and cross-border money movements. By enhancing reporting requirements and transaction limits, the central bank seeks to foster a more transparent financial ecosystem while deterring illicit activities.