BOT Tightens Cash Rules With ID Checks For All

Thailand’s central bank will implement stricter controls on cash transactions from April 1, 2026, requiring banks to verify identities for all cash dealings and apply news enhanced checks to high-risk transactions of 5 million baht or more per day. The move aims to reduce the use of banks for illicit financial activity and protect legitimate customers.

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The Bank of Thailand (BOT) said the new framework focuses initially on cash withdrawals and transactions involving cash cheques that result in cash withdrawals, which are particularly vulnerable to misuse. Individuals must provide an ID card or passport, contact information and a signature at branches, while companies must submit registration documents and contact details. Electronic transactions must be verified through secure methods such as a PIN, OTP, app authentication, or biometric data.

Banks are also required to assess the purpose of transactions based on the customer’s risk profile. Unusually large transactions compared with the customer’s normal behaviour may prompt additional questions or requests for supporting documents. Transactions lacking a reasonable explanation must not proceed.

The Nation reported that cash dealings of 5 million baht or more in a single day are now classified as high risk, triggering enhanced customer due diligence (EDD). This includes asking about the purpose, gathering information from reliable sources, and requesting extra documentation. Corporate clients may need to provide details of the business, occupation, workplace and beneficial owner. Banks must reject transactions if they cannot complete these checks and report the matter to the Anti-Money Laundering Office.

Financial institutions are also required to monitor and review customer cash transaction behaviour on an ongoing basis. Any unusual activity that does not match past behaviour or lacks clear justification must be closely monitored, with appropriate risk measures applied. Identification records, transaction purpose documents, and unusual behaviour reports must be securely retained for BOT inspections, investigations, legal proceedings, and internal control purposes.

The central bank emphasised that legitimate customers should not face excessive burden and must be treated fairly if cleared of suspicion. BOT may expand oversight to include cash deposits, cheque deposits, and banknote exchange services if risks increase. Banks must submit reports on unusual cash activity to BOT and provide additional information on request.

Failure to comply could result in corrective actions, conditions imposed, or suspension of services. BOT said the new framework is part of its ongoing effort to strengthen safeguards in Thailand’s banking system as financial crime becomes more complex.

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Adapted by ASEAN Now Nation 21 Mar 2026