BoT flags suspicious cash withdrawals, tightens online gold trading rules
Thailand’s central bank, Bank of Thailand (BoT), is cracking down on suspicious financial activity after unusual cash withdrawals totalling 250 million baht were flagged across commercial banks.
BoT Governor, Sethaput Suthiwartnarueput, revealed on January 28 that commercial banks have been ordered to urgently investigate irregular cash withdrawal patterns. In one case, a customer withdrew 250 million baht in a single transaction, while another split a 200 million baht withdrawal across two banks, each dispensing 100 million baht.
What raised eyebrows was a request for all cash to be dispensed in 500-baht banknotes. BoT is now preparing to forward this data to relevant authorities, such as the Anti-Money Laundering Office (AMLO), to determine if the transactions are linked to criminal activity.
If political connections are suspected, the case will be referred to the Election Commission of Thailand (EC).
BoT plans to revise its laws and regulations on large cash withdrawals within the next two to three months. Proposed changes may include setting withdrawal thresholds, such as 3 million or 5 million baht, after which banks would be required to conduct deeper investigations into how the cash will be used.
Legitimate business and personal transactions with traceable sources will still be accommodated.
In addition to cash controls, BoT also announced tighter oversight of online gold trading. With the surge in digital gold transactions affecting the Thai baht and lacking a centralised data system, the BoT will limit daily online gold purchases using baht-based apps to 50 million baht per person. This restriction does not apply to in-store purchases or apps using US dollar settlements.
The gold trading rules will be rolled out in two phases:
- First, gold shops must retroactively report transactions exceeding 20 million baht from January 26 onwards.
- Then, from March 1, the 50 million baht per person cap will be enforced, giving over 15 major gold trading apps time to adjust their systems.
BoT is also clamping down on currency exchange shops. A new rule now limits foreign currency exchanges to no more than 800,000 baht per person. For border-area money changers, the ceiling is even lower, capped at 200,000 baht, to curb underground and grey-market money flows out of the country.
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