BoT targets cash buyers of property

The Bank of Thailand is considering new regulations that would require banks to closely examine customers purchasing pricey real estate using cash, as part of its strategy to curb illicit financial activities. A public hearing on the proposed rules, which would apply to transactions worth 5 million Thai baht or more, is currently underway from August 5 to September 3.

The rules would encompass cash withdrawals, deposits, exchanges, and cash received for cheque and draft issuance, as well as cash involved in foreign banknote transactions. Financial institutions would be required to evaluate the appropriateness of cash transactions and ensure they align with the customer's stated rationale. If the reasons appear inconsistent or the transactions seem unreasonable, such as withdrawing a substantial sum of cash to buy land or high-value property when other payment methods are available, the banks must take appropriate action.

During a cybersecurity conference, Assistant Governor Daranee Saeju of the Bank of Thailand highlighted that the country had not experienced any unauthorized mobile banking transactions due to "money malware" in the past 18 months. She emphasized that this success was due to the collaboration among regulatory bodies, financial institutions, and cybersecurity experts.

The central bank is also exploring the use of artificial intelligence to bolster its defenses against advanced scams and is implementing stricter measures to prevent the misuse of digital fund transfers and payments by minors.