BoT targets cash buyers of property

The Bank of Thailand is considering requiring banks to closely monitor cash purchases of high-value properties due to concerns about illicit financial activities. The central bank has initiated public hearings on proposed rules to strengthen risk management for transactions of at least 5 million baht. These rules would apply to cash withdrawals, deposits, exchanges, and payments for cheques, drafts, and foreign banknote transactions.

Financial institutions would need to evaluate customers' transaction reasons and take action if they appear unreasonable, such as withdrawing large sums for land or property purchases when alternative payment methods are available. In a related development, the central bank's assistant governor highlighted that Thailand has not experienced any unauthorized mobile banking transactions due to "money malware" in the past 18 months, attributing this success to collaboration among regulators, financial institutions, and the Thailand Banking Sector Computer Emergency Response Team (TB-CERT).

The central bank emphasized that cybersecurity is crucial for maintaining trust in the financial system and plans to strengthen supervisory expectations across the industry. Additionally, the bank is leveraging AI to enhance customer authentication, detect suspicious behavior, and combat increasingly sophisticated scams. The central bank is also adopting a broader cybersecurity approach, focusing on preserving public confidence in the financial system rather than just securing individual institutions and networks.

Recently, the central bank introduced new measures to limit digital fund transfers and payments for young account holders to prevent their accounts from being used as mule accounts, with daily transfer limits adjusted based on users' ages and usage patterns.