The unfair Thai Banking system

[topt]

20 hours ago, simoh1490 said:

Required by law or not they are levied.

TW may well be paying it but if so my guess would be that it will have been included/absorbed in their overall charges. You just do not see it broken out separately. 

[Griffo63]

22 hours ago, nahkit said:

So if I understand you rightly you are saying that you transferred baht into the country and used that to buy a condo?

 

The OP (in my understanding) is saying that you have to transfer foreign funds into the country to purchase a condo.

 

Has he got it wrong and in fact the funds can be in Thai baht, they just have to originate from outside the country?

I've no idea what the rules are but yes my funds in THB originate from outside THailand. I transferred £''s from my UK bank to FCExchange in London. We agreed the exchange rate to THB, a contract was raised and they transferred the THB to my Bangkok Bank account in THailand. Bangkok Bank charge 500 baht International Transfer on the incoming amount ( I've double checked that) and issued me with the International Transfer Certificate I needed when I went to the Land Registry Office to complete the purchase transaction. 

[Sumarianson]

Yes that is my understanding of Transferwise, an amount of money goes into a transferwise account in country A and an amount of money comes out of a transferwise account in country B but no money actually gets transferred. Not sure how they keep filling up the thai account though, as they dont do transfers back the other way.
 
As I said not sure if the post about an FET from TW were legit. The way it was explained, similar to when you buy a condo from a developer and your overseas funds go straight into the developers bank and the developer generates an FET listing you as the sender, rather than the normal bank FET listing you as the receiver.  But still not doable if no money is actually transferred.
 
. 

An FET is no longer required. There is only a requirement of a letter, so maybe?

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[Sumarianson]

Yes that is my understanding of Transferwise, an amount of money goes into a transferwise account in country A and an amount of money comes out of a transferwise account in country B but no money actually gets transferred. Not sure how they keep filling up the thai account though, as they dont do transfers back the other way.
 
As I said not sure if the post about an FET from TW were legit. The way it was explained, similar to when you buy a condo from a developer and your overseas funds go straight into the developers bank and the developer generates an FET listing you as the sender, rather than the normal bank FET listing you as the receiver.  But still not doable if no money is actually transferred.
 
. 

If it is possible to pay the developer. How is the amount transferred agreed, ie what rate? Where have you seen this being possible?

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[Sumarianson]

Don't believe everything on here i have just started using Transferwise to Bangkok Bank account for 2 months now, and made 2 transfers and i have not been charged 1 baht for the transfers incoming.
 

You will not be charged when the money is in Thai Baht. Only when an exchange has taken place.

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[Sumarianson]

I have to say Thai banks are pretty fair in regards to FX compare to western banks, which are the real rip off kings. But comparing Banks to Superich is like comparing apples to oranges. There are regulations in regards to how much money people can carry to prevent money laundering. Its the same in pretty much every country.

There is no regulation on the amount of money you can bring in to Thailand but there is going out. There is an amount over which you have to declare it yo customs on both sides and have it registered with them, I believe it is 10,000 Euro.

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[Sumarianson]

I have to say Thai banks are pretty fair in regards to FX compare to western banks, which are the real rip off kings. But comparing Banks to Superich is like comparing apples to oranges. There are regulations in regards to how much money people can carry to prevent money laundering. Its the same in pretty much every country.

As for banks being fair? If you were charged 10,000 baht every time you made a simple transaction in Tesco Lotus you would be pissed. Transferring money electronically is simple and involves no trucks carrying money from one country to another. Why should you not get the same rate as any bank or individual. The banks make s fortune off the money you deposit in a account of any kind in the bank.
The Fractional Reserve System allows banks to only have 20% or less on deposit of the money they lend out. 80% or more of the money they make huge interest on, does not exist. It is created in a computer.
When money id created by the "private" banking system, they charge interest on the money that is created; However when that money is created the interest charged is not created nor any interest levied by other entities along its path in the form of bank loans, house loans, business loans etc.
In other words if everyone paid back their loans now, there would not be enough money in existence to pay them back.
When President Andrew Jackson (US) abolished the federal reserve in 1833, he warned that the banksters would try again to introduce the Federal Reserve System, and they did.
If anyone thinks that the banking system and interest (known as usury) is fair. Then they should look up the Federal Reserve System on you tube or read about it. Knowledge is power.
"Question everything, especially those who would rule over you".


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[Peterw42]

27 minutes ago, Sumarianson said:

An FET is no longer required. There is only a requirement of a letter, so maybe?

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From memory there is a $50k US threshold, under $50k its a letter from the bank, over $50k its a FET.

 

33 minutes ago, Sumarianson said:

If it is possible to pay the developer. How is the amount transferred agreed, ie what rate? Where have you seen this being possible?

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I haven't done the transfer to developer account, only read about others doing it on other threads, I recall it being mentioned on one of the bank sites "how to", no different to sending money to your own account, maybe a little more to cover exchange rate variation, probably a settlement if to much is sent. 

[Sumarianson]

My Thai bank, Krungsri, give me always a better change for Euro than HSBC in my country.

It's a bit like saying, 'my master lets me keep the crumbs from his table'! Oh so kind.

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[Tchooptip]

25 minutes ago, Sumarianson said:

It's a bit like saying, 'my master lets me keep the crumbs from his table'! Oh so kind.

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What is this crazy response, before I left the exchange made in Europe by my bank HSBC now I import what I need every year in Euro the exchange is made by Krungsri and I'm a winner 

I maintain your answer has nothing to do with what I said. Your liver must be a little sick and produce too much bile

[steve73]

When I look at my (Kbank) statement for TW credits to my account they sometimes  show the Baht was credited from Service Channel  "INTERNATIONAL TRADE AND FACTORING CENTER TFN05027", but other times they show "DUMMY BRANCH MCL07416".

 

In the above Service Channel descriptions, the "TFN" is classed as an International Transaction, whereas the "MCL" denotes a Smart Credit.

 

I'm not sure why it changes, since I always use the "General Living Expenses" as the TW reason for transfer, but perhaps a "TFN" designation would be suitable to generate a FET or the appropriate letter...

 

I've always found TW's help desk to be very customer focused, so it may be worth asking them directly if you are considering using them to send funds to buy a condo.

[Sumarianson]

On 9/22/2018 at 8:59 AM, Tchooptip said:

What is this crazy response, before I left the exchange made in Europe by my bank HSBC now I import what I need every year in Euro the exchange is made by Krungsri and I'm a winner 

I maintain your answer has nothing to do with what I said. Your liver must be a little sick and produce too much bile

That was funny but no need for the personal attack. What I imply is that we have accepted the shit that the bankers throw at us without question. They are a big problem. Did you know that Usury (The adding of interest on to a loan) Was illegal for many thousands of years? I know that you are not borrowing, but you are paying a fee as though you are. That fee does not reflect the absolute 'no work' it takes to transfer funds these days. On average the bank takes at least 1% of your hard earned money when you transfer. That represents $10.000 on a $1Mil transfer. Do you think that is a fair price for that work? It may take you several years to transfer that amount, but when buying property in Thailand that can diminish in a single transaction. I don't think that is honest or fair. You are after all paying taxes in this country through what you buy @ at least 7% if not 17% or more. We on the other hand cannot choose who runs the country or taxes us!  I don't say that this only happens in Thailand, what I am saying is the system is rotten and needs to be changed. However this is the only voice we have got in Thailand with no vote and no automatic right to residence no matter how long you stay here. Unlike Europe.

[Sumarianson]

On 9/22/2018 at 4:25 AM, Griffo63 said:

I've no idea what the rules are but yes my funds in THB originate from outside THailand. I transferred £''s from my UK bank to FCExchange in London. We agreed the exchange rate to THB, a contract was raised and they transferred the THB to my Bangkok Bank account in THailand. Bangkok Bank charge 500 baht International Transfer on the incoming amount ( I've double checked that) and issued me with the International Transfer Certificate I needed when I went to the Land Registry Office to complete the purchase transaction. 

The funds I would imagine could be in Thai Baht if it is accompanied by proof of originating from outside Thailand. I am not sure of this but many people who had funds in Thai baht from an undetermined source, had to transfer out of Thailand and back in again in order to purchase property. There are rules about where the Baht came from and how much you can send out. That is the reason they had FET. To prove the amount you sent in so as you can send the same amount out again if you wish. Now there is no need of an FET just a Bank letter. If what you say is true then it is possible to use an FX broker in the UK to transfer the funds directly to your Thai Baht account or the Developers account for that matter. Would I be right in saying that? As that would be a huge saving.

[mike324]

On 9/22/2018 at 2:09 PM, Sumarianson said:

There is no regulation on the amount of money you can bring in to Thailand but there is going out. There is an amount over which you have to declare it yo customs on both sides and have it registered with them, I believe it is 10,000 Euro.

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There is a limit of how much you can bring in and out if its Thai baht, something around 50,000 baht ?  
There is no limit for foreign currency, but there is a limit before you have to declare if its over $20,000. Same for going in and out of the country. 

 

When you declare the money, they will stamp the declaration form or ask you what its for. Its so they can keep track on money going in and out. If you don't declare and get caught, they have the authority to confiscate all that money.

[mike324]

On 9/22/2018 at 2:31 PM, Sumarianson said:

As for banks being fair? If you were charged 10,000 baht every time you made a simple transaction in Tesco Lotus you would be pissed. Transferring money electronically is simple and involves no trucks carrying money from one country to another. Why should you not get the same rate as any bank or individual. The banks make s fortune off the money you deposit in a account of any kind in the bank.
The Fractional Reserve System allows banks to only have 20% or less on deposit of the money they lend out. 80% or more of the money they make huge interest on, does not exist. It is created in a computer.
When money id created by the "private" banking system, they charge interest on the money that is created; However when that money is created the interest charged is not created nor any interest levied by other entities along its path in the form of bank loans, house loans, business loans etc.
In other words if everyone paid back their loans now, there would not be enough money in existence to pay them back.
When President Andrew Jackson (US) abolished the federal reserve in 1833, he warned that the banksters would try again to introduce the Federal Reserve System, and they did.
If anyone thinks that the banking system and interest (known as usury) is fair. Then they should look up the Federal Reserve System on you tube or read about it. Knowledge is power.
"Question everything, especially those who would rule over you".

Sent from my SM-G935F using Thailand Forum - Thaivisa mobile app
 

Yes the system sucks, that is why I'm looking forward to fx companies such as transferwise.  At the moment everyone is in chains. The industry is changing fast, just hope Thailand would allow transferwise to operate by sending money out of the country too. 

[hobz]

14 minutes ago, mike324 said:

Yes the system sucks, that is why I'm looking forward to fx companies such as transferwise.  At the moment everyone is in chains. The industry is changing fast, just hope Thailand would allow transferwise to operate by sending money out of the country too. 

Transferwise is a good alternative.

Sadly they have some semi-hidden fees... For example if you fund a transfer with a company/business credit card they add extra 1.5% making it total 2.5% in fees.. meaning they charge 2500THB for a 100k transfer.. I'm pretty sure it's the <deleted> credit card companies / banker cartels fault but...just saying...

I still use transferwise for all my transactions into Thailand.

[simoh1490]

2 hours ago, mike324 said:

There is a limit of how much you can bring in and out if its Thai baht, something around 50,000 baht ?  
There is no limit for foreign currency, but there is a limit before you have to declare if its over $20,000. Same for going in and out of the country. 

 

When you declare the money, they will stamp the declaration form or ask you what its for. Its so they can keep track on money going in and out. If you don't declare and get caught, they have the authority to confiscate all that money.

"There is no limit on the amount of Thai baht bank notes that may be brought into the country. A person traveling to Vietnam, the People's Republic of China (only Yunnan province) and Thailand's bordering countries is allowed to take out  up to THB 2,000,000. A person traveling to other countries is allowed up to THB 50,000.

Any person bringing into or taking out of Thailand Thai baht bank notes, foreign currency bank notes or negotiable monetary instruments in an aggregate amount exceeding 450,000 Baht or USD 15,000 or its equivalent must declare to a customs officer"

 

.https://www.bot.or.th/English/FinancialMarkets/ForeignExchangeRegulations/FXRegulation/Pages/default.aspx

[simoh1490]

1 hour ago, mike324 said:

Yes the system sucks, that is why I'm looking forward to fx companies such as transferwise.  At the moment everyone is in chains. The industry is changing fast, just hope Thailand would allow transferwise to operate by sending money out of the country too. 

THB is a restricted currency, until BOT changes the rules on that no bank or company is ever going to be allowed to freely export THB.