BANGKOK, THAILAND – Thailand’s central bank ordered banks and payment firms to tighten reporting of suspicious money flows in a major escalation against so‑called grey capital and money laundering.
Central bank steps into frontline of oversight
The Bank of Thailand (BoT) introduced new rules requiring banks to report suspicious transactions directly to the central bank. Previously, all such reports had gone only to the Anti-Money Laundering Office (Amlo).
BoT governor Vitai Ratanakorn said banks now had to flag potential grey-money movements immediately.
“The BoT will define which transactions are considered suspicious,”
said Vitai, governor of the Bank of Thailand.
This new duty was added on top of existing reporting obligations to Amlo. The changes brought the central bank into a role from which it had largely been excluded until now.
Focus on illegal flows and online gambling
The measures clearly targeted illegal activities and criminal cash flows. Accounts linked to online gambling websites were singled out for closer scrutiny.
Large amounts of money that moved in and out again almost instantly were also to be flagged.
“The goal is to take action or forward information to Amlo,”
said the BoT chief, adding that cooperation between the agencies would be intensified.
The central bank said it wanted to prevent the financial sector from being used for criminal purposes. Grey-capital networks were warned that their activities in Thailand were coming under unprecedented pressure.
Unregulated gold trade brought under the lens
A particular challenge, according to the BoT, was the country’s gold trade. Until now, this segment had not been under any supervisory authority, even though trades could have a major impact on the baht exchange rate.
Because most gold transactions took place via mobile apps, the BoT had previously lacked direct access to the underlying data. That situation was now set to change fundamentally.
“Closer monitoring of the gold trade will provide the bank with comprehensive data,”
said Vitai. The authorities suspected links between gold trading and grey money flows.
Tighter controls on e-wallets and money changers
Oversight of payment service providers was also being stepped up. The affected firms included e-wallet operators, money transfer agents and currency exchange booths.
The Know Your Customer (KYC) system was to be significantly strengthened so that every client could be fully identified. Exchange houses, in particular, were told to improve their ability to detect unusual transactions.
The aim was to spot illegal money movements as early as possible. This would add bureaucracy for banks and payment companies but was described as necessary to protect the integrity of the financial system.
Strong baht linked to economic fundamentals
The strong baht remained under close observation by the central bank. Since the beginning of the year, the currency had gained 5% against the US dollar.
Vitai stressed that the appreciation was in line with Thailand’s underlying economic fundamentals, pointing to a current account surplus.
“The baht could readjust with a decline in the current account surplus,”
said the BoT governor, adding that developments were being closely monitored.
Officials framed the package of measures as a turning point in the fight against the shadow economy. By systematically cutting off financial channels for criminal networks, Thailand aimed to make grey capital increasingly difficult to hide.