Transferring Money For Property Purchase + Capital Controls

[chickencurry]

We are buying a property in Thailand, awaiting contract from the Thai lawyers, but will have to move large sum of money from our bank in Singapore (HSBC) to our local bank in Thailand (Kbank) - Singapore dollars being transferred from that end.

Think we understand the procedures from the Thai end in that we have to request Foreign Exchange Transaction Forms from the local bank after the money arrives... BUT... very nervous about effecting the transaction from Singapore. I think we need to show the property contract to the Singapore bank but is that good enough in order to avoid BoT holding on to a share of the funds with the current restrictions?

Has anyone done this? Any tips, advice please?

[puuchai299]

Surely your thai lawyers can make it clear as to what you can do????

[GreenGrasser]

I do not know the funds transfer requirements of your Singapore bank.

If you have an account in a Thailand bank, can you not transfer funds between your accounts? That is, transfer your funds from your Singapore bank account to your Thailand bank account.

I know some financial institutions prohibit the transfer of your funds to a third party, but a transfer between your accounts would not be against this prohibition.

Once your funds are in your Thailand bank account, then you can pay a fee to your Thailand bank to write a bank/manager/cashier check to the owner of the property you are buying.

But, it might be better to set up a Thailand escrow account to hold your payment, until the owner signs over the title of the property to you.

Hope this shed some light on what to ask.

[chickencurry]

Surely your thai lawyers can make it clear as to what you can do????

Yes of course but they are in Thailand and I am in Singapore currently. They cannot discuss with HSBC in Singapore.

[chickencurry]

I do not know the funds transfer requirements of your Singapore bank.

If you have an account in a Thailand bank, can you not transfer funds between your accounts? That is, transfer your funds from your Singapore bank account to your Thailand bank account.

Once your funds are in your Thailand bank account, then you can pay a fee to your Thailand bank to write a bank/manager/cashier check to the owner of the property you are buying.

That is what we are doing but there are the capital restrictions on incoming money for large amounts. Our concern is that all of the funds may not turn up due to the restrictions. I'm hoping that someone in Singapore might post a reply with their experiences from this end.

Edited July 3, 2007 by chickencurry