Bangkok: The Bank of Thailand is intensifying its efforts to clamp down on shady capital, implementing stricter regulations on cash withdrawals and deposits exceeding 5 million baht, while also targeting the control of non-performing loan (BNPL) lending by the end of the year.

According to Thai News Agency, the Governor of the Bank of Thailand is steadfast in his mission to curb the informal economy and illicit capital. He emphasized that financial institutions will not be misused for money laundering activities. Recent measures to scrutinize cash withdrawals over 5 million baht have already led to a 35% reduction in such transactions. Plans are underway to extend these controls to cash deposits and currency exchanges exceeding 5 million baht. The Bank is also coordinating with the Securities and Exchange Commission (SEC) to examine cryptocurrency transactions, with a particular focus on large-value trades involving USDT. Regulations on BNPLs (Bills and Loans) are expected to be finalized by year-end.

Mr. Witai Rattanaporn, Governor of the Bank of Thailand, highlighted the institution's commitment to addressing structural issues in the Thai economy, including the grey economy, illicit capital, and corruption. He assured that financial institutions would not become conduits for illegal business activities. This statement followed his lecture in the 2026 Advanced Economic Capacity Building Project, organized by the Economic Journalists Association in collaboration with Bangkok Bank Public Company Limited and the University of the Thai Chamber of Commerce.

Since April and May, the Bank of Thailand has been implementing customer due diligence measures for significant cash withdrawals, requiring customers to disclose the purpose of the withdrawal. This has contributed to a considerable decrease in large cash withdrawals. The measures are set to be expanded in the fourth quarter to include large cash deposits and currency exchanges, with individuals required to disclose the origin of the funds to better prevent money laundering and illegal activities.

Additionally, the Bank has directed all banks to closely monitor mule accounts and transactions linked to online gambling. Collaborative efforts have resulted in the closure of over 1,000 such accounts. The Bank is also vigilant about potential illicit funds moving into digital assets, coordinating with the SEC to investigate unusually high cryptocurrency trading volumes, especially involving USDT, which could indicate attempts to evade disclosure or transfer money outside the formal system.

Mr. Witai also provided updates on the regulation of "Buy Now Pay Later" (BNPL) services. Draft guidelines are being developed, considering the complexity arising from the diversity of service providers and transaction types. Following consultations with commercial banks, a public hearing will be held before the guidelines are finalized, aiming for clarity by the end of the year. The regulations will be designed to avoid negative consequences, such as setting minimum spending limits that could lead to excessive consumer spending. The primary aim is to promote financial discipline, especially in light of the rapid increase in BNPL usage among children and youth, who are susceptible to excessive debt.