PATTAYA, Thailand – By any reasonable measure, Thailand’s war on scam networks and grey money is overdue. Criminal syndicates, mule accounts, call center gangs, and cross border fraud have cost victims billions of baht and badly damaged trust in the financial system. The Bank of Thailand, under pressure to act, has responded with tighter compliance, stricter verification, and new transfer limits. The intention is sound. The consequences, however, are becoming harder to ignore especially in expat heavy cities like Pattaya.
In recent weeks, this column has received a steady stream of emails from readers describing a banking experience that feels less like prudent regulation and more like bureaucratic punishment for the innocent. One long term resident summed it up bluntly: “Banks in Thailand are appalling compared to other countries. It’s normal to wait hours just for basic service. It took me three hours and twelve different forms just to change my passport number.”
Another reader, a 57-year-old retired single father living in Bangkok, shared a more troubling experience. After using a well-known international money transfer service to send funds from New Zealand to Thailand, his transaction was frozen. Despite providing bank statements showing the legitimate source of funds, his account was closed. Ten thousand New Zealand dollars of his own money remains inaccessible. “I don’t know what to do,” he wrote. “I feel completely powerless.”
These are not isolated stories. Thai nationals are also feeling the squeeze. Business owners report that even newly registered companies fully Thai owned, with Thai directors now struggle to open bank accounts. Banks request photographs of premises, proof of active operations, and documentation once reserved for loan applications, not simple account opening.
Parents sending tuition fees abroad face new daily transfer caps. Amounts that were previously transferred in a single transaction now must be broken into multiple days, complicating deadlines and increasing stress, all without any allegation of wrongdoing.
The common thread is not criminality, but compliance overcorrection. Banks, under intense regulatory pressure, appear to have adopted a defensive posture: restrict first, question later. From their perspective, the risk of being accused of facilitating grey money outweighs the inconvenience caused to legitimate customers. From the customer’s perspective retiree, small business owner, parent, or investor the system feels arbitrary, opaque, and unforgiving.
This matters in Pattaya more than most places. The city’s economy depends heavily on foreign residents who live here long term, spend locally, and comply with visa, tax, and banking rules. When routine financial life becomes unpredictable when accounts can be frozen without explanation or transfers delayed without warning the sense of security erodes.
No one disputes the need to fight scams. But regulation that lacks proportionality risks collateral damage. Grey money does not travel alone; it shares the same financial infrastructure as pensions, school fees, business capital, and retirement savings.
The challenge for Thailand’s banking authorities is not whether to act, but how precisely to act. Clearer communication, faster review mechanisms, and genuine appeal processes would go a long way toward restoring confidence without giving scammers room to breathe. Otherwise, the unintended message to law abiding residents is a troubling one: you may be welcome to live here, but your money is always under suspicion. And that is a cost no compliance checklist can easily measure.
Victor Wong (Peerasan Wongsri)
Victor Law Pattaya/Finance & Tax Expert
Email: <[email protected]> Tel. 062-8795414
