Yesterday (19 March 2026), the Royal Gazette website published an announcement from the Bank of Thailand (BOT) setting strict guidelines for banks to manage risks in cash withdrawal transactions exceeding 5 million baht per day.
This measure aims to block the channels for illegal money flows.
From now on, cash transactions will no longer be private and beyond scrutiny. Thairath Money has summarized 20 key points from this Royal Gazette announcement that Thai people should know before its implementation as follows.
1. Cash leaves no trace: Currently, criminals use cash as a primary means to conceal financial trails because it lacks identification and transaction records.
2. Financial institutions as tools: There has been a significant rise in the use of banks to move illegal money.
3. Prevent systemic collapse: Leaving this unchecked would undermine confidence in the country’s financial institutions.
4. Raise standards: To prevent banks from facilitating illegal activities and to protect ordinary customers.
5. Clear definition: The rule focuses on "cash-related transactions" meaning cash withdrawals or use of cash checks that result in cash being withdrawn.
6. Who is covered: It applies to "customers" of all types, including individuals, legal entities, and legally agreed parties.
7. Applies to all banks: This announcement is binding on all financial institutions under the financial institution business law.
8. The 5 million baht figure: Cash withdrawals exceeding 5 million baht in one day will be classified immediately as "high-risk" transactions.
9. Subject to EDD: These customers must undergo Enhanced Customer Due Diligence.
10. Explain purpose: Customers must clearly state the reason for withdrawal and may need to submit supporting documents.
11. Background check: Banks will verify information from reliable sources or require up-to-date details about the customer’s occupation and workplace.
12. No explanation, no withdrawal: If the customer cannot provide a valid reason and necessity, the bank has the right to refuse the transaction.
13. Must identify oneself every time: Whether withdrawing at a branch or ATM, identity verification or presentation is mandatory each time.
14. At branches: Customers must use an ID card or passport, provide phone number/email, and sign; new customers must also provide occupation and workplace.
15. ATM/app withdrawals: Must use high-security systems such as PIN, OTP, app verification, or biometric scans (e.g., facial recognition).
16. Monitor unusual behavior: Banks will record suspicious behavior; if transactions don’t match the customer's financial status or income, close monitoring will follow.
17. Report to the Anti-Money Laundering Office: If transactions remain suspicious and unresolved, banks will report to the office under the law.
18. Protecting legitimate customers: If delays occur but the transaction is later proven legitimate, banks must provide prompt and fair remedies.
19. Future coverage may include deposits: While currently focused on withdrawals, BOT encourages banks to extend these rules to cash/check deposits and currency exchanges in the future.
20. Effective from 1 April 2026: These regulations are mandatory nationwide starting 1 April 2026.
Source: Bank of Thailand Announcement No. 16/2569, published in the Royal Gazette on 19 March 2026.