Thai Bank asking reason for remittance

[jayboy]

My Thai bank (BB) phoned to ask the reason for a Sterling remittance of £ 25000 from my UK bank.I don't recall this happening before but I haven't made so high value a remittance for some time.As usual on the UK remittance instruction I had indicated the purpose as "general living expenses".Didn't get the impression the Thai bank inquiry was anything other than a box ticking exercise and the amount has subsequently been credited to my account.But it hasn't happened here before and I wondered what is the general experience.

[Etaoin Shrdlu]

The Bank of Thailand requires this information from the bank.

 

If the reason isn't stated on the remittance documentation when received by the bank, the bank will call the recipient and ask. Even with the reason stated, the bank may ask anyway.

 

I'm not sure if there is a formal threshold.

Edited April 29 by Etaoin Shrdlu

[ukrules]

2 minutes ago, Etaoin Shrdlu said:

If the reason isn't stated on the remittance documentation when received by the bank

 

When sending a wire I need to select a 'reason' for the wire transfer every time, have done for many years now.

 

I always just select 'Personal Transfer' and manually type in a reference of 'Personal'

 

i generally send wires for less amounts than this but sometimes send more than 1 of them, like I will wait for the first one to arrive before sendin the second one a week later or something like that.

 

When initiating the transfer which I'm going to assume went through the SWIFT system was the OP given the choice of selecting the mandatory and required 'reason' field?

[Dioj]

You also need to state a reason for the purpose of the transfer when transferring money into any Thai bank account using Wise. It seems the question is asked, and a list of possible reason is offered to choose from, regardless of how small the transfer amount is.
 

In short, the reason for this is because of something that is now simply referred to as KYC, which is a polite way of the bank trying to implement some form of anti-money laundering procedures to meet with central bank banking regulations. 

[Mike Lister]

Yes, I agree with ES above, it's a BOT requirement. I don't understand how you were allowed to remit the funds in the first place, without stating the reason. If you say Living Expenses, that money will be deemed to have been spent and in the future it may be difficult to refer back to it in case you decide to try and expatriate the funds overseas.  BBL on their web site says this:

 

"To guard against fraud and money laundering, the Bank of Thailand’s regulations state that all banks in Thailand must obtain specific reasons for funds transfers before they are credited into an account in Thailand. Transfer purposes may include paying for goods, buying a condominium, investing in a business or living expenses.

Bangkok Bank will report the purposes for all incoming funds transfers to the Bank of Thailand on your behalf".

 

https://www.bangkokbank.com/en/Personal/Other-Services/Transfers/Transferring-Into-Thailand/FAQs

[Dioj]

12 minutes ago, Mike Lister said:

Yes, I agree with ES above, it's a BOT requirement. I don't understand how you were allowed to remit the funds in the first place, without stating the reason. If you say Living Expenses, that money will be deemed to have been spent and in the future it may be difficult to refer back to it in case you decide to try and expatriate the funds overseas.  BBL on their web site says this:

 

"To guard against fraud and money laundering, the Bank of Thailand’s regulations state that all banks in Thailand must obtain specific reasons for funds transfers before they are credited into an account in Thailand. Transfer purposes may include paying for goods, buying a condominium, investing in a business or living expenses.

Bangkok Bank will report the purposes for all incoming funds transfers to the Bank of Thailand on your behalf".

 

https://www.bangkokbank.com/en/Personal/Other-Services/Transfers/Transferring-Into-Thailand/FAQs

Correct. As I posted above "... a form of anti-money laundering procedures to meet with central bank banking regulations."

[jayboy]

17 minutes ago, Mike Lister said:

I don't understand how you were allowed to remit the funds in the first place, without stating the reason.

 

Please read my initial post again in which I clearly stated that I indicated on the UK bank online form the purpose of the remittance, namely general living expenses (as I have on at least a hundred times over several decades).I suppose my UK bank could have failed to include this information but it seems unlikely.

 

23 minutes ago, Mike Lister said:

If you say Living Expenses, that money will be deemed to have been spent and in the future it may be difficult to refer back to it in case you decide to try and expatriate the funds overseas. 

 

That's a risk I can live with since, to quote the unlamented Boris Johnson the chances of me ever being able to expatriate funds from Thailand to the UK are as remote as being reincarnated as an olive or decapitated by a frisbee.

[scubascuba3]

29 minutes ago, Dioj said:

You also need to state a reason for the purpose of the transfer when transferring money into any Thai bank account using Wise. It seems the question is asked, and a list of possible reason is offered to choose from, regardless of how small the transfer amount is.
 

In short, the reason for this is because of something that is now simply referred to as KYC, which is a polite way of the bank trying to implement some form of anti-money laundering procedures to meet with central bank banking regulations. 

The reason for transfer is important for Bangkok Bank transfers that need to be settled as International 

[Liverpool Lou]

48 minutes ago, jayboy said:

My Thai bank (BB) phoned to ask the reason for a Sterling remittance of £ 25000 from my UK bank.... it hasn't happened here before and I wondered what is the general experience.

Not unusual for higher amounts and unusual transactions, maybe B1m triggers the enquiry.   A lot to do with AML procedures.

Edited April 29 by Liverpool Lou

[foreverlomsak]

So a set of conversations/selections relating to a funds transfer could become

 

UK Bank - Why are you sending the money to WISE

Me - For them to send to Thailand for my annual VISA extension

 

WISE - Select reason for forwarding the money

Me - For my annual VISA extension (I forget actual title of selection)

 

Thai Bank (2 working days later) - Why have you remitted the money to us

Me - For my annual VISA extension

 

Thai Bank (2 working days later) - Dear Bank of Thailand, our customer XYZ has remitted money to us from abroad, he says it's for his annual VISA extension, can we pay him, he is registered for tax purposes.

BoT (2 working days later) - OK

Thai Bank (2 working days later)  - We have now credited your account

Me (After starting the process 2 weeks before) - Hoo FN Ray

 

It's nearly there now.

 

[Mike Lister]

22 minutes ago, jayboy said:

 

Please read my initial post again in which I clearly stated that I indicated on the UK bank online form the purpose of the remittance, namely general living expenses (as I have on at least a hundred times over several decades).I suppose my UK bank could have failed to include this information but it seems unlikely.

 

 

That's a risk I can live with since, to quote the unlamented Boris Johnson the chances of me ever being able to expatriate funds from Thailand to the UK are as remote as being reincarnated as an olive or decapitated by a frisbee.

Sorry, missed the first part......bad Mike, bad! 🙂

 

But I don't agree with the second part, I've been able to repatriate funds on a couple of occasions, the last time in 2019 when I went back to the UK for 4 months, UOB had no problem with it.

[Chivas]

Questions get asked simply to ascertain just in case an audit is ever required (say for suspected money laundering) and to see the answers that were supplied

[jayboy]

42 minutes ago, Mike Lister said:

But I don't agree with the second part, I've been able to repatriate funds on a couple of occasions, the last time in 2019 when I went back to the UK for 4 months, UOB had no problem with it.

 

 I didn't suggest it wasn't possible (obviously it is) and in the past I have done it. However my currentpersonal circumstances make the transfer of funds to the UK highly unlikely.Too much information?

[Dioj]

52 minutes ago, Mike Lister said:

But I don't agree with the second part, I've been able to repatriate funds on a couple of occasions, the last time in 2019 when I went back to the UK for 4 months, UOB had no problem with it.

The issue of repatriating funds is completely off topic for this thread, but, since you brought it up, the main criteria is being able to provide evidence that the funds were transferred in to Thailand from overseas to begin with. If you simply show your bank evidence of the transfer for when you transferred the funds in from overseas, then that is probably all that is needed to satisfy your Thai bank and the BOT requirements for transferring money back out of the country via a T/T from a Thai bank. I've done it many times in the past and never a problem. Funds often arrive in the overseas account also within the same day. 

[gamb00ler]

5 hours ago, Mike Lister said:

If you say Living Expenses, that money will be deemed to have been spent and in the future it may be difficult to refer back to it in case you decide to try and expatriate the funds overseas.

Recently, a friend that I've known since before either of us moved to Thailand asked for my help in trying to transfer funds back to the USA.  He and his Thai wife had sold properties that had appreciated substantially.  The Thai bank did not ever ask him to show that he had brought any of those funds into Thailand.  Perhaps that requirement applied in the past but it seems it no longer does.  His bank was more preoccupied about the reason he was sending the funds.

[freeworld]

Probably part of the banks anti money laundering controls and verification. Randomly pick a large transfer for questioning. It has been reported in the past years that some people were being singled out and the bank contacted them about an incoming transfer.

 

There are also some new EU laws on controlling money and cash payments to combat money laundering eu link

Edited April 30 by freeworld

[Mike Lister]

On 4/29/2024 at 6:16 PM, Dioj said:

The issue of repatriating funds is completely off topic for this thread, but, since you brought it up, the main criteria is being able to provide evidence that the funds were transferred in to Thailand from overseas to begin with. If you simply show your bank evidence of the transfer for when you transferred the funds in from overseas, then that is probably all that is needed to satisfy your Thai bank and the BOT requirements for transferring money back out of the country via a T/T from a Thai bank. I've done it many times in the past and never a problem. Funds often arrive in the overseas account also within the same day. 

 

I'll permit this deviation from the main focus of the thread because it is a related point that is worth everyone's understanding.

 

The reason BOT has tight controls over the purpose of remittances and withdrawals is because the Baht is not freely convertible, even overseas banks are disallowed from holding more than set limits plus THB is not traded for delivery on any of the global exchanges. In short, the baht is a restricted currency and BOT wants to understand the purpose of all foreign remittances and also tightly controls the outflows to the extent that THB cannot be exported in more than small amounts, except to neighbouring countries where the amounts are increased.

[topt]

On 4/29/2024 at 4:14 PM, jayboy said:

But it hasn't happened here before and I wondered what is the general experience.

In the past, and for many years, I only transferred in once per year (so a reasonably amount) and even though putting a reason down with the remitting bank I was always called by my Thai bank and asked again for the reason.

It also gave me a chance to "negotiate" the rate as well.......

[rwill]

I know SCB calls to ask what the money is for if it is over $20,000 US.   All they really want to know is if it is for personal use or for purchasing property.

 

Also as TOPT mentioned when they called me they would tell me the rate but then tell me they were going to give me a better rate.  I guess because of the size of the transfer.

Edited May 1 by rwill

[Rimmer]

An overly derogatory post has been removed please see the following forum rule

 

14. You will not post slurs, degrading or overly negative comments directed towards Thailand, Thai people, Thai culture, Thai institutions such as the military, judicial or law enforcement system or specific locations within Thailand.

[brianthainess]

I just put for ''sustenance'' never had a problem. 

[keithcresswell]

I transferred £200 with Wise last week, but this time there was no box asking for the reason for the transfer. The transfer usually takes a couple of seconds but this time it took nearly an hour. I'm wondering if there's a connection.

[john donson]

expect to pay 25% tax on that soon...

[Mike Lister]

2 minutes ago, john donson said:

expect to pay 25% tax on that soon...

Scaremonger 

[Paris333]

It may be just for Bank΄s clarification for your own security and exchange commission furthermore who will pay the commission between sender and receiver or half to half commission.

Dont worry its Bank΄s internal affairs and I am sure you have had from menu option to choose it.

I almost every semester send euro remittance in other E.U country to buy vitamins and the Bank send me at my phone double security code in order to activate the bank order.No problem !

[Yellowtail]

The bank is likely just being helpful. I think of you were planning to buy a condo or whatnot, they would treat it differently. 

 

Every time I transfer money to Thailand I say it is for real estate purchase.