Something strange happening to Thai banks deposit protection starting soon

[jojothai]

1 hour ago, topt said:

 

As mentioned, on previous threads about CRS, Thailand still has to enable internal legislation to actually undertake this and I haven't seen any notice of that happening - have you?

Also it is going to affect the Thai's with big money as much, if not more than, expats unless avoiding paying their home country tax man.

Be interested to see if anybody has any more recent information. 

The first step that should be readily identified is that the banks / financial institutions here will need to send you a notice for you to provide the CRS declaration for details and confirmation of tax residency.
That is what happened for the accounts I held in other countries. It happened when implementation was beginning.
There was then a period of time for a second and third notice which by then warned that you may not be able to use the account if the details are not provided. The financial institution is legally bound to provide it.

[RocketDog]

It seems that the proper action for excess cash in Thai bank is gold purchase. I feel so lucky that gold purchase /sale is so anonymous, fast, and convenient here.

 

I'm currently selling rental property in USA and am thrilled at the prospect of dumping some large cash here at 35/$ or more. Half of that, at least, will immediately go into gold jewelry for sure.

 

I bought a house about 2 years ago when I got 30/$.????

[Pedrogaz]

8 hours ago, soi3eddie said:

Crazy Thailand. I own a BKK condo at 5mTHB at lowest but still need to keep 800+k in the bank for visa extension. Duh!

 

You need to understand the difference between wealth and income.

[scubascuba3]

1 hour ago, tonray said:

Must also maintain 800K for 3 months after your extension and additionally can never drop below 400K at any time. It's a useless account and causes many problems for people that really do need to access the money in an emergency.

in an emergency I'd use the 800k and use an agent for the following year, probably better than dying

[tonray]

1 minute ago, scubascuba3 said:

in an emergency I'd use the 800k and use an agent for the following year, probably better than dying

Well yeah...just the point that Immigration has no exemption for using the money they require you to have for emergencies. Just creates another emergency for you. Idiots

[dlclark97]

16 hours ago, KannikaP said:

I wonder what applies to Foreign Currency Accounts.

Foreign currency accounts will NOT be protected.  https://www.nationthailand.com/in-focus/40004190

[abrahamzvi]

16 hours ago, Galong said:

KannikaP... It says, "DPA offers protection to both Thai and foreign individuals and juristic persons who hold accounts in the Thai currency in any of 35 financial institutions"  So, it doesn't seem like it would affect other currencies, but that would be worth sussing out for sure.

There is NO PROTECTION to foreign currency accounts. However, If one has accounts with the bigger , assume  safer banks like Bangkok Bank , SCB, etc, I doubt that one has reasons to worry. Remembering the 1997/8 awful crisis, the bigger financial institutions were OK.

[bert bloggs]

2 hours ago, brianthainess said:

In theory on your first 90day report you must show still 800,000 baht in the bank and on your next renewal show that it did not drop below 400,000 for the whole year. Married extension once granted you can spend the lot.

And that is why after 14 yrs i changed to a marriage visa 2 yrs ago,on another note,saying how much Thai banks have in unpaid loans ,3 years ago i phoned the bank to ask how much they wanted for a house on our estate,29 million , about 3 weeks ago i phoned again 15 million," i cant afford it i replied ,oh the owner will cut to 12 million ime sure" and thats just one property,been empty for about 5 to 6 yrs.i reckon at the very most its worth 8 million these days.

[4MyEgo]

Only transfer the amount I need to survive, i.e. 630,000 every year which includes the marriage visa amount of 400,000 baht 3 months before renewal, the private insurance cover comes out of an overseas account, then repeat every year.

 

Personally one would have rocks in their head to have more than a million baht in one Thai bank at any given time.

[khunPer]

It's been decided long time ago, actually many years ago, slowly decreasing guarantee amount down to 1 million baht.

 

If you have much cash money, spread them in more than one bank, and perhaps "invest" some of them i Fund Books (mutual funds) based on cash.

[Mac Mickmanus]

13 minutes ago, khunPer said:

It's been decided long time ago, actually many years ago, slowly decreasing guarantee amount down to 1 million baht.

 

I

Where and when was that reported ?

[khunPer]

12 minutes ago, Mac Mickmanus said:

Where and when was that reported ?

I've read about it for years, more than 10 year to be precise, both in news articles and former Thaivisa forum (now ASEAN Now). The high gurantee amount dates back from after the '97 crash, and was planned to slowly phase down to one million baht for ages.

[55Jay]

Quote

Asian Nations Try Not To Get Scorched By 'Hot Money' March 8, 2011 12:01 AM ET

With the U.S. and other first-world economies deep in debt and growing sluggishly, most of the world's economic expansion is now coming from developing nations.

Investors, meanwhile, have been pouring money into emerging markets, pumping up their stock prices and currency exchange rates.

https://www.npr.org/2011/03/08/134240721/asian-nations-try-not-to-get-scorched-by-hot-money

[VBF]

3 hours ago, jojothai said:

The first step that should be readily identified is that the banks / financial institutions here will need to send you a notice for you to provide the CRS declaration for details and confirmation of tax residency.
That is what happened for the accounts I held in other countries. It happened when implementation was beginning.
There was then a period of time for a second and third notice which by then warned that you may not be able to use the account if the details are not provided. The financial institution is legally bound to provide it.

That might be interesting if, for example, you have an account in Thailand which you use for "holidays" in Thailand.

Especially if the Thai bank has NO address details on file for you. Mentioning for a friend, of course ????

[Sophon]

1 hour ago, Mac Mickmanus said:

Where and when was that reported ?

The reduction in the coverage amounts to 1 million have been planned for more than a decade, but every time we got close to the deadlines, the higher coverage has been extended. Here is an illustration from a few years back:

Edited August 5, 2021 by Sophon

[jojothai]

1 hour ago, VBF said:

That might be interesting if, for example, you have an account in Thailand which you use for "holidays" in Thailand.

Especially if the Thai bank has NO address details on file for you. Mentioning for a friend, of course ????

If they have no contact information, then may be best to ensure that there is not much money there when you leave each time. Just in case they freeze/lock the account. 

As can happen for accounts that have not been used for a very long period of time.
Happened to an old account that I had not used a long time.
I wanted to keep its records of currency brought in for condo purchase.
But, i managed to get it unlocked after giving appropriate proof they wanted.

[Kalasin Jo]

Well it's certainly not safe under the mattress in Thailand. 1m THB is really not much. Just enough to cover the financial requirements for a retirement visa.

[VBF]

1 hour ago, jojothai said:

If they have no contact information, then may be best to ensure that there is not much money there when you leave each time. Just in case they freeze/lock the account. 

As can happen for accounts that have not been used for a very long period of time.
Happened to an old account that I had not used a long time.
I wanted to keep its records of currency brought in for condo purchase.
But, i managed to get it unlocked after giving appropriate proof they wanted.

Thanks. "My friend" is aware of the bank's "dormancy" rules if the account isn't used for 12 months and he keeps just enough in the account to stop that happening so hasn't got too much to lose. "He" also has a ATM card that he could use to empty the account from abroad if necessary.

[xtrnuno41]

Simple , cut losses when it fails.

Only way for you is to spread and have more accounts.

I wonder how a Prayut is doing it then. He will need about a 100 accounts,or not, "special" rules then again? 

However banks and governments are now on global way busy of controlling the money. Interest on your money? Here it is almost gone, about 0.1 %.

They want you top pay for it, get negative interest. However they fear you will redraw your the money from the bank. Now they are working of paying if you want to withdraw money above a certain amount/year. So you cant take all of your money out in one time. 

We also cant buy in cash if it is over 3000 euro then you MUST pay electronic by bank. In this way government WILL track your money.

My government is considering all people here as criminals and they love criminal money. They destroy your live even if they are wrong.

Banks are in the package aswel, as they launder money.

And in the same time they tell banks what to do, banks have to follow.

World of total control and domination.

We are the Borg, we will assimilate you, resistance is futile.

Love that sentence, as one day we will be like that, i think.    

[BestB]

Why is it strange? Banks loosing money on daily basis, no money coming in. BOT knows what’s coming , government minimising its liability.

 

Was inevitable and unlikely government will be bailing out any bank.

 

In my opinion banks have themselves to blame. They knew people can not make payments , should have allowed people to pay whatever they can until things get better, instead banks insisted on full amounts , people default , banks take away cars, property but can not sell or sell for peanuts

[Galong]

14 minutes ago, BestB said:

In my opinion banks have themselves to blame. They knew people can not make payments , should have allowed people to pay whatever they can until things get better, instead banks insisted on full amounts , people default , banks take away cars, property but can not sell or sell for peanuts

Yeah, I agree. It's like they don't understand running a bank and not accepting high-risk customers.  They've really shot themselves in the feet with this.  Banks need us to trust them... that's gone.

[xylophone]

On 8/4/2021 at 5:48 PM, Galong said:

I guess it makes sense to spread out money over several banks

Yes that is what I intend to do now. Keep my 800k in Bangkok Bank and transfer the remaining lump sum to my other almost dormant SCB acct........will get onto that tomorrow!!

 

Anyone see a problem with that?

Edited August 5, 2021 by xylophone

[BestB]

19 minutes ago, Galong said:

Yeah, I agree. It's like they don't understand running a bank and not accepting high-risk customers.  They've really shot themselves in the feet with this.  Banks need us to trust them... that's gone.

Not only that , many , I would say thousands may have had loans for years , way before Covid but lost income because of covid . Can not get water out of stone, banks should understand. Could have done memorandum for 1-2 years or accept any payment customer could make . Then just adjust the loans . Yes more work for bank but it’s not people’s fault Covid came or government ordered business to shut down.

 

unlike the west, government did not pay unemployment benefits or compensated business owners. Money does not grow on a tree

 

 

[BestB]

8 minutes ago, xylophone said:

Yes that is what I intend to do now. Keep my 800k in Bangkok Bank and transfer the remaining lump sum to my other almost dormant SCB acct........will get onto that tomorrow!!

 

Anyone see a problem with that?

No problem at all as long as the guarantee is more than just words 

[david555]

10 hours ago, topt said:

 

As mentioned, on previous threads about CRS, Thailand still has to enable internal legislation to actually undertake this and I haven't seen any notice of that happening - have you?

Also it is going to affect the Thai's with big money as much, if not more than, expats unless avoiding paying their home country tax man.

Be interested to see if anybody has any more recent information. 

From awesie from an investers lawyer site i read that the oecd gave Thailand up to end of this August to sign on it or else they would come on that special list ....

 

However they also said all is still on negotiation , and as already said 2023 should be the rapporting starting with in 2022 some test cases...

 

If i find the link from those lawcompany about thailand again i shall post ....

they where not Thai  but Americans ????

Edited August 5, 2021 by david555

[riclag]

19 hours ago, scubascuba3 said:

probably ok for 1 or 2 banks folding but if many get into crisis then I can see the protection stalling

If it ever came down to that who could argue with a glorified  Security Guard ! I wouldn't  be surprised if at the 11th hour that full pay back(under 1mil ) turns into a percentage of your total !

Best to keep the minimum here for immigration  ,together with a  emergency fund of 200k !

 Hopefully I'll soil the bed before that ever happens !

[riclag]

14 hours ago, abrahamzvi said:

There is NO PROTECTION to foreign currency accounts. However, If one has accounts with the bigger , assume  safer banks like Bangkok Bank , SCB, etc, I doubt that one has reasons to worry. Remembering the 1997/8 awful crisis, the bigger financial institutions were OK.

There's a new sheriff in town !

[dastott]

11 hours ago, jojothai said:

But, i managed to get it unlocked after giving appropriate proof they wanted.

Can you recall what proof they wanted? Would be very helpful to know. Thank you.

[jojothai]

7 hours ago, dastott said:

Can you recall what proof they wanted? Would be very helpful to know. Thank you.

I had to go my actual branch.
From what I can recall, I think the bank book and the passport was enough. Had an ATM card that already could not be used. I did not need another at the time. Just wanted to keep the account open for records with a small amount in it.

I needed the old passport last used on the account and my new passport.
There was a form to complete and sign. Not much on it.
And a small fee to pay.

Also needed to change address and provided utility bill as proof. That was an extra, probably not essential.

[dastott]

5 hours ago, jojothai said:

I had to go my actual branch.

Thank you, very helpful. I presume there are many people with funds in Thai banks that cannot or don’t want to return at present but whose cards will expire or accounts may become dormant. A difficult situation when a visit to a branch is required to keep the account active and open.