BANGKOK, Thailand – Bank of Thailand Governor Vitai Ratanakorn says the central bank is considering tighter controls on large cash transactions involving luxury villas, classic cars and expensive vehicles to make money laundering more difficult.
Vitai said on October 29 that the proposed measures could restrict or prohibit cash payments for certain high-value assets. He cited purchases of luxury villas in Phuket worth 100–200 million baht, questioning how such large sums could be verified and where the money originated.
The proposals are still under consideration and have not yet been announced as formal regulations.
The central bank is also preparing measures to monitor cash deposits of 5 million baht or more, due to take effect on November 1. Banks will be required to ask customers about the source and purpose of the funds and may request supporting documents depending on the level of risk.
Vitai said a measure introduced on April 1 requiring explanations for cash withdrawals of 5 million baht or more had already reduced the value of such transactions by more than 57% compared with January 2026.
Gold transactions and other high-value assets under scrutiny
The Bank of Thailand is also preparing rules limiting cash payments for gold transactions exceeding 10 million baht. Under the draft, cash received or paid for gold bullion purchases through gold shops would be capped at 10 million baht per customer, per day, per shop or branch. Any amount above that would have to be settled electronically.
The rules are expected to be announced in November. Separately, a reporting requirement for daily withdrawals of two kilograms or more of gold bullion through applications has reduced such transactions by more than 85% compared with January, Vitai said.
He added that monitoring must extend beyond cash and gold to other assets, including foreign banknotes, digital assets such as USDT, property and luxury vehicles, as illegal funds could move between different forms of wealth.
Bank of Thailand targets financial channels used by illicit money
Vitai said corruption causes damage beyond the legal offences themselves, diverting capital and resources away from productive investment and national development while also reducing the government’s ability to collect tax revenue.
He said the central bank’s responsibility was not to investigate or arrest politicians or senior officials suspected of corruption, but to prevent the banking system from making it easy for illicit money to enter, move through or leave the financial system.
The central bank is pursuing measures at three stages: preventing the opening of mule accounts through stricter customer checks; monitoring suspicious transfers through 14 identified transaction patterns; and examining how money is withdrawn or converted into assets.
Banks are required to apply Know Your Customer (KYC), Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) procedures, while merchant checks under Know Your Merchant (KYM) rules aim to prevent banking services from being used by illegal businesses.
Vitai acknowledged that no single measure could eliminate money laundering entirely, as offenders might turn to other channels when one route was restricted. The central bank would continue working to make the movement and use of illicit funds through financial institutions more difficult.
