# BOT tightens cash rules, mandates ID checks, and flags transactions over Bt5m as high risk

- Link: https://www.thailand-business-news.com/banking/295841-bot-tightens-cash-rules-mandates-id-checks-and-flags-transactions-over-bt5m-as-high-risk
- Published: 2026-03-23T08:57:00+07:00
- Author: Bui Dung

The Bank of Thailand (BOT) is implementing stricter regulations for cash transactions
effective April 1, 2026, to combat money laundering, fraud, and the concealment 
of illicit funds.

Under this new framework, all financial institutions must verify the identity of
customers for every cash transaction, while dealings totaling 5 million baht or 
more in a single day will be classified as high-risk.

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These measures aim to enhance the transparency of the banking system by requiring
rigorous scrutiny of high-value or unusual transactions, with mandatory reporting
of suspicious activities to the Anti-Money Laundering Office.

## Key Points

 * **Mandatory ID Verification**: Starting April 1, 2026, banks must verify the 
   identity of all individuals and juristic persons for every cash transaction via
   physical branches or electronic channels (using PINs, OTPs, or biometrics).
 * **High-Risk Threshold**: Daily cash transactions of 5 million baht or more are
   designated as high-risk, requiring banks to perform Enhanced Customer Due Diligence(
   EDD).
 * **Transaction Scrutiny**: Banks are required to investigate the purpose of transactions
   and may request supporting documentation if a customer’s cash activity is inconsistent
   with their known profile or behavior.
 * **Initial Focus**: The rules will first target cash withdrawals and cash-cheque
   transactions, as these are primary methods used to obscure financial trails.
 * **Right of Refusal**: Financial institutions must reject transactions and report
   the matter to the Anti-Money Laundering Office (AMLO) if a customer cannot provide
   a reasonable justification for a high-value or suspicious deal.
 * **Record Keeping**: Banks must maintain secure records of customer identification
   and transaction purposes for future inspections, investigations, and legal proceedings.
 * **Future Expansion**: The BOT may expand these regulations to include cash deposits
   and banknote exchange services if financial risks continue to escalate.
 * **Regulatory Penalties**: Banks that fail to comply with the new rules face potential
   service suspensions, corrective orders, or additional conditions imposed by the
   central bank.

The BOT stated that if a financial institution fails to adhere to regulations or
engages in activities that jeopardize public safety or the stability of the financial
system, the central bank reserves the right to enforce additional conditions, mandate
corrective measures, or order delays or suspension of certain services. This updated
framework, set to take effect on April 1, 2026, represents a significant step forward
in bolstering the resilience of Thailand’s banking system amid the growing complexity
of financial crimes.