Prospective buyers browse property projects at last year's House and Condo Expo. The central bank may introduce new rules to strengthen risk management for cash transactions of at least 5 million baht, with the aim of preventing financial institutions from being used for money laundering and other illicit activities. (Photo: Wisuttipong Rodpai)
The Bank of Thailand is planning to require banks to scrutinise customers who buy high-value property with cash as part of efforts to prevent illicit financial activities.The central bank has recently opened a public hearing on proposed new rules to strengthen the risk management of cash-related transactions worth at least 5 million baht, as it seeks to prevent financial institutions from being used for money laundering and other illicit activities.
The public hearing runs from Aug 5 to Sept 3.
According to the public hearing, the proposed rules would cover cash withdrawals and deposits, banknote exchanges, and cash received for the issuance of cheques and drafts. They would also apply to the purchase, sale and exchange of foreign banknotes involving transactions worth 5 million baht or more.
Financial institutions would be required to assess whether customers' transaction behaviour is appropriate, including the rationale and necessity for conducting cash-related transactions.
