BANGKOK, Thailand – The Bank of Thailand (BOT) is stepping up measures to combat the grey economy, illegal financial networks and money laundering risks, warning that financial institutions must not become channels for unlawful activities. BOT Governor Vitai Ratanakorn said the central bank is focusing on structural economic problems, particularly the informal economy, grey capital and corruption, while strengthening monitoring systems to ensure banks and financial institutions under its supervision are not used to support illegal businesses. The measures include stricter checks on large cash transactions. Since April and May, commercial banks and state financial institutions have required customers withdrawing more than 5 million baht in cash to provide reasons for the transactions as part of enhanced customer due diligence procedures.
The move has resulted in large cash withdrawals falling by about 35%, according to the BOT.
The central bank plans to expand these measures in the fourth quarter of this year to cover large cash deposits exceeding 5 million baht and requests to exchange large amounts of cash into smaller denominations. Customers may be required to explain the source of funds to improve efforts against money laundering and illegal transactions. The BOT has also instructed banks to strengthen monitoring of mule accounts and transactions linked to online gambling. Through cooperation with relevant agencies, more than 1,000 suspicious accounts have already been closed.
The central bank is also watching the movement of grey capital into digital assets and is coordinating with the Securities and Exchange Commission (SEC) to monitor cryptocurrency transactions, particularly unusually large USDT transactions that may be used to avoid financial disclosure requirements or transfer money outside formal channels. Vitai said authorities are also working on regulations for “Buy Now Pay Later” (BNPL) services, which have expanded rapidly in Thailand.
The BOT is currently preparing regulatory guidelines after discussions with commercial banks and plans to hold a public consultation before announcing the final rules, with a target conclusion by the end of this year.
He said BNPL regulations will be designed carefully to avoid unintended consequences, such as encouraging excessive spending through easy access to credit. The governor stressed that the purpose of regulating BNPL is not to restrict business operators, but to promote responsible financial behavior among consumers, particularly younger users who may face a higher risk of taking on excessive debt. The BOT said future financial controls will focus on maintaining confidence in Thailand’s financial system while preventing it from being misused for illegal activities. (TNA)
