The Bank of Thailand (BoT) has opened a public consultation on two draft regulations aimed at tightening oversight of banknote exchange, deposits and withdrawals, requiring identity verification for every transaction. The consultation runs from 10 February to 24 February 2026. The measures are intended to prevent the public from falling victim to financial crime and to stop financial institutions being used as channels for criminal activity.
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The BoT said the draft rules would require financial institutions and specialised financial institutions to implement end-to-end Customer Due Diligence (CDD) processes. These would cover customer onboarding, transaction monitoring, identity verification and the termination of relationships, in line with the risk level of customers, transaction types and financial products or services, particularly those involving cash. Institutions must also establish clear governance structures, policies, procedures and systems for managing such risks.
Under the proposals, boards and senior management would be responsible for ensuring appropriate CDD processes are in place. Know Your Customer (KYC) procedures must align with the risk level of each product or service and go beyond existing KYC requirements. Institutions would also be required to monitor and detect unusual transactions and conduct Enhanced Customer Due Diligence (EDD) where suspicious activity is identified; if EDD cannot be completed, the institution must not proceed with the transaction.
The draft also sets out requirements for managing risks related specifically to cash transactions. Customers must present themselves or verify their identity before carrying out transactions, and institutions must request information about the purpose of transactions. Any unusual cash movements must be closely monitored, with risk management measures applied according to the level of risk identified.
Financial institutions must retain customer data and supporting documents for the period required by law. They are also required to submit reports to the BoT on transactions or financial behaviour deemed unusual, as well as any additional information requested by the central bank. The draft states that institutions must have processes in place to support honest customers affected by such measures in an appropriate, prompt and fair manner.
The BoT said the regulations are designed to strengthen confidence and enhance the stability of the financial system. The consultation period will allow stakeholders to provide feedback before the rules are finalised.
Khoasod reported that what happens next will depend on the outcome of the public consultation, which closes on 24 February 2026. After reviewing submissions, the BoT is expected to consider revisions before issuing the final regulations.
Key Takeaways
• The BoT is consulting on draft rules requiring identity verification for all cash-related transactions from 10–24 February 2026.
• Financial institutions must strengthen KYC, CDD and EDD processes and refuse transactions if enhanced checks cannot be completed.
• Banks must report suspicious transactions to the BoT and ensure fair treatment of honest customers affected by the measures.
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Adapted by ASEAN Now Khaosod 12 Feb 2026
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