Banks to tighten the screws on grey money, ordering explanations for cash deposits above ฿5 million while expanding surveillance of suspicious accounts, luxury property deals and digital assets.
Thailand is preparing its biggest assault yet on the grey economy, with customers depositing more than 5 million baht in cash soon required to explain the source of their money as the Bank of Thailand widens a sweeping crackdown on illicit finance, suspicious banking activity, high-value cash property purchases and digital assets. Governor Mr Vitai Ratanakorn said the tougher measures form part of a broader drive to shut criminal networks out of the banking system while confronting deep structural weaknesses that continue to constrain Thailand’s long-term economic growth despite a stronger-than-expected outlook this year.
Thailand will require customers depositing more than 5 million baht in cash to disclose the source of the funds from October as the Bank of Thailand broadens its campaign against the grey economy, illicit finance and corruption.
The tougher requirements are expected to take effect in the fourth quarter. Officials are first updating the central bank’s legal authority before finalising the rules. Bank of Thailand Governor Mr Vitai Ratanakorn said the objective is clear. Financial institutions must not become channels for illegal activity.
Speaking to economic reporters, Mr Vitai said the central bank now places its highest priority on tackling Thailand’s structural weaknesses. He identified the informal economy, grey capital and corruption as persistent obstacles. As a result, regulatory oversight across the banking sector is being tightened.
New cash disclosure rules will target large deposits, banknote exchanges and suspicious cash movements
Customers depositing more than 5 million baht in cash will be required to explain where the money originated. Large cash exchange transactions will also face closer examination.
Anyone exchanging substantial quantities of 1,000-baht notes for 100- or 500-baht notes must explain the purpose. According to the latest details, exchanges worth 10 million baht or more will require a formal justification. The central bank believes such transactions can indicate attempts to conceal illicit cash movements.
The new disclosure rules expand measures introduced earlier this year. Since April and May, customers withdrawing more than 5 million baht have faced enhanced due diligence.
Commercial banks and state-owned financial institutions must verify why cash is needed. They must also determine whether electronic transfers or cheques could complete the transaction instead. Legitimate business activity, however, remains fully permitted.
Notably, the earlier controls have already produced measurable results. Mr Vitai said large cash withdrawals have fallen by approximately 35% since the measures began. The Bank of Thailand now plans to apply identical standards across every commercial bank and state financial institution. It expects the tighter approach to reduce large cash transactions further.
Banks widen surveillance as property deals, gambling accounts and stablecoins face tighter scrutiny
In parallel, banks have been instructed to intensify surveillance of suspicious account activity. Particular attention is being paid to transfers made during night-time hours. Repeated transactions involving amounts such as 500 baht, 1,000 baht or 20,000 baht are viewed as possible indicators of online gambling operations.
Banks have authority to suspend and immediately close such accounts. Mr Vitai said thousands of accounts linked to suspicious activity have already been shut down.
Separately, the central bank is examining the growing use of cash in high-value property purchases. Mr Vitai referred to luxury villa acquisitions worth around 100 million baht completed entirely with cash. The Bank of Thailand is considering future restrictions on such payments. It is also investigating unexplained requests to exchange millions of baht in large-denomination banknotes for smaller notes without a credible commercial reason.
On another front, regulators are extending scrutiny to digital financial activity. The Bank of Thailand is discussing stablecoin regulation with the Securities and Exchange Commission following unusually high trading volumes.
Mr Vitai said advanced data analytics could identify transactions intended to avoid disclosure requirements. The technology could also reveal funds moving through conventional financial channels without attracting attention. Responsibility for regulating stablecoins, however, rests with the SEC.
Beyond financial enforcement, Mr Vitai warned that Thailand’s most serious economic challenges remain structural. He said successive governments had concentrated on short-term projects, promotional campaigns and public relations. Long-term reform, by contrast, had received limited attention despite persistent weaknesses.
Structural weaknesses, ageing workforce and uneven recovery continue to limit Thailand’s economic potential
Even so, the governor said the Thai economy has shown greater resilience than expected during the recent Middle East conflict.
The Bank of Thailand now forecasts economic growth of 2.3% this year. That compares with an earlier worst-case scenario predicting a 1.5% contraction. Mr Vitai said the stronger outlook does not alter the country’s deeper economic problems.
He said resources remain concentrated among large businesses while the grey economy continues to distort legitimate activity. Corruption also continues to weaken long-term growth.
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Moreover, years of inadequate investment in innovation and modern infrastructure have reduced productivity. Thailand’s ageing population is steadily shrinking the workforce. The country’s recovery has also become increasingly uneven.
Large corporations continue to recover and secure financing. Smaller businesses, meanwhile, still struggle to obtain formal credit. Low-income households remain under financial pressure despite improving headline economic figures. Mr Vitai described the pattern as a K-shaped recovery, with larger companies advancing while many smaller participants remain constrained.
“What we have seen over the years are mainly short-term projects,” Mr Vitai said. “There has been very little effort to solve long-term problems.”
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