Bangkok: The Bank of Thailand is implementing stricter oversight on incoming foreign capital transactions as part of its strategy to address the strong baht. The new measures, which come into effect today, aim to mitigate the upward pressure on the national currency and prevent undesirable transactions.
According to Thai News Agency, Ms. Pimphan Charoenkwan, Assistant Governor for Financial Markets at the Bank of Thailand (BOT), announced that the bank is enhancing its supervision of foreign exchange transactions. The revised regulations will focus on verifying documents related to foreign exchange sales transactions conducted by residents, including both individuals and legal entities, to curb illicit transactions and financial fraud.
Currently, transactions involving the sale of US dollars to purchase Thai baht, valued over US$200,000 per transaction, constitute 15% of all incoming resident transactions. However, these transactions account for a significant 85% in value. The enhanced scrutiny measures are intended to address potential channels for illicit activities and financial fraud, which could influence currency fluctuations. The following scenarios will now mandate stricter verification:
1) For transactions involving the exchange of foreign currency to Thai baht, or deposits into a foreign currency account exceeding US$200,000, commercial banks must verify the source of funds, except for routine business transactions with well-documented clients.
Commercial banks must request supporting documentation for transactions equaling or exceeding US$200,000, especially when the funds arise from:
- Real estate sales to foreigners
- Digital asset sales
- Other foreign funds not related to investments in subsidiaries, securities, loans, or derivatives
- Non-traditional sources, such as remittances, donations, or banknotes
2) For foreign currency transfers from gold sales, banks must verify sales documents, including invoices and shipping papers.
3) For foreign currency imports, banks must verify documents for banknote imports valued at US$15,000 or more.
These regulatory adjustments are expected to enhance the stability of the exchange rate by imposing more rigorous checks on foreign exchange transactions. The changes are set to be implemented from December 29, 2025.