BANGKOK, Thailand – The Bank of Thailand will introduce stricter checks on cash-related transactions worth 5 million baht or more from November 1, requiring banks to verify the source and purpose of funds for qualifying transactions conducted at branches. Electronic banking transactions are excluded.
The new rules cover cash deposits, cheque and bank draft deposits, baht banknote exchanges, cash used to obtain cheques or drafts, foreign currency purchases and exchanges, and certain insurance, investment product and financial derivative transactions.
Bank of Thailand Governor Vitai Ratanakorn said the measures aim to prevent illicit funds from flowing through Thailand’s financial system and improve transparency and security. Banks must conduct enhanced due diligence based on customer risk, which may include asking about the source of funds, the purpose of the transaction and supporting documents.
Banks must also report suspicious transactions or activity inconsistent with a customer’s usual behavior to the central bank. The rules require financial institutions to maintain appropriate customer service and provide prompt, fair assistance to customers affected by the measures.
The announcement is part of wider efforts to strengthen fraud prevention, including the Bangkok Blueprint for Fraud-Resilient Financial Services initiative promoted by the Bank of Thailand in cooperation with the International Monetary Fund and the World Bank. (Story, Photo: Prachachat Business)
