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Thai Banks Tighten Monitoring on Grey Money Transactions

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Photo courtesy of Bangkok Post

 

Banks in Thailand have pledged to intensify scrutiny of grey money activities, following the Bank of Thailand's strengthened measures. According to Payong Srivanich, chairman of the Thai Bankers' Association, banks are aligning with directives involving the investigation of financial activities potentially linked to illicit funds and scams. The sector has also enhanced its "Know Your Customer" systems to prevent fraud and scams effectively.

 

The focus on monitoring involves collaboration with various regulatory bodies, including the Bank of Thailand, the Anti-Money Laundering Office, and the Securities and Exchange Commission. These institutions mandate compliance with both local and international standards. However, current central bank monitoring is limited to regulated financial bodies, prompting calls for improved collaboration among agencies to bolster crime prevention.

 

Mr. Payong suggested that revisions to laws, such as the Personal Data Protection Act, may be necessary to tackle emerging challenges. Regulations specific to digital assets and cryptocurrencies might also be introduced to enhance financial safeguards. Earlier this week, the central bank announced plans to enhance oversight to address the burgeoning issue of grey money, focusing on preventing the misuse of Thailand's financial systems.

 

Central bank governor Vitai Ratanakorn emphasized the importance of new mechanisms to detect and investigate illegal transactions. Measures include increased due diligence on customers, urging banks to investigate suspicious account activities, particularly those related to online gambling and scamming operations. Additionally, regulatory scrutiny will extend to financial service providers like authorised money agents and e-wallet operators.

 

The intent is to provide thorough tracing of financial flows that could be linked to fraudulent or corrupt activities, adapting to the evolving landscape of financial crime. This initiative reflects a comprehensive effort to enhance the integrity of Thailand's financial systems.

 

Key Takeaways

  • Thai banks are intensifying efforts to monitor grey money transactions.
  • Enhanced regulations may be introduced for digital assets and cryptocurrencies.
  • The central bank is focusing on heightened oversight of illegal financial activities.

 

Related Stories

Police Dismantle Gambling Network with ฿1.2 Billion Turnover

Vietnam and China Boost Border Control Against Illegal Entries

 

image.png  Adapted by ASEAN Now from Bangkok Post 2025-11-06

 

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  • Popular Post

My Bangkok Bank card switched from Visa to Union Pay a few years ago. Was this to make it easier for Chinese and Russians to evade currency supervision? I don't know. I'm asking. Did Bangkok Bank help usher in the scamming by switching from US Visa to China Union Pay?

  • Popular Post
37 minutes ago, John Drake said:

My Bangkok Bank card switched from Visa to Union Pay a few years ago. Was this to make it easier for Chinese and Russians to evade currency supervision? I don't know. I'm asking. Did Bangkok Bank help usher in the scamming by switching from US Visa to China Union Pay?

 

Asked Grok and got this:

 

Yes, the shift from Visa to UnionPay on Bangkok Bank debit cards (the Be1st Smart series) around 2017–2018 did make certain scams easier—especially for Chinese nationals running call-centre or pig-butchering fraud rings in Thailand, Myanmar, Cambodia and Laos.

 

Why Bangkok Bank Switched

Bangkok Bank replaced Visa/Mastercard debit cards with UnionPay + Thailand’s local TPN network.

Official reason: “Higher security” (every transaction needs a PIN + chip) and lower costs for the bank.

Real driver: the surge in Chinese tourists (15 million a year pre-Covid). UnionPay is accepted at 90 % of Thai ATMs and most tourist shops, so Chinese visitors could withdraw cash without 220-B fee or bad FX rates.

 

How UnionPay Helps Scammers

Instant, high-limit cash-outs in Thailand
A Chinese scammer wires victim money to a mule account in China → mule opens a UnionPay debit card → flies to Bangkok → withdraws 100,000–200,000 B per day from any Bangkok Bank / Krungthai / ICBC ATM.
Visa/Mastercard foreign cards get hit with 220 B + 2–3 % FX fee + daily limits of ~20,000 B. UnionPay = 150 B flat fee and higher limits.

 

Mules can be “clean” tourists
Recruiters in China pay students or gamblers 10,000–20,000 B to fly in, hand over their real UnionPay card + PIN, then fly out. The gang uses the card remotely or via a local runner. Thai police rarely stop a legitimate Chinese tourist at immigration.

 

Harder to freeze from abroad
UnionPay is 100 % Chinese-owned. If Thai police flag a card, the freeze request goes through Beijing. Compare to Visa: one phone call from Bangkok to Visa’s Singapore hub and the card is dead worldwide in minutes.

 

Proven in the big raids

2023–2025 Myanmar border sweeps: 35,000 Chinese scammers repatriated; almost every seized wallet had UnionPay cards.

Mae Sot safe-houses (2024): Thai police found 400+ UnionPay cards used to launder 2 billion B in one compound.

Pattaya “Grey Capital” networks: Chinese bosses pay runners 5 % to pull cash via UnionPay ATMs in 7-Eleven clusters.

 

Russians? No LinkRussian gangs in Thailand still use old-school skimming + fake Visa/Mastercard clones (428 blank cards seized in Phuket 2016, etc.). After Mastercard/Visa left Russia in 2022 some Russian banks issued UnionPay co-branded cards, but in Thailand the Russian fraud teams stick to crypto or cash drops because they can’t open Thai bank accounts easily. Bottom Line The switch was a commercial decision to capture Chinese tourist spending.
It unintentionally gave Chinese scam syndicates a perfect cash-out rail that Visa never offered.


Bangkok Bank quietly re-introduced Mastercard debit in 2018 and Visa versions in 2020, but the basic Be1st Smart you get at any branch is still UnionPay — and still the scammers’ favourite ATM card. If you want a Visa/Mastercard debit today, ask for the “Be1st Smart M Visa” or “Rabbit LINE Pay Mastercard” at the branch; they keep a small stock for expats.

  • Popular Post

Whenever I see an article like this one nowadays, I cannot help but wonder how much more onerous things will become for regular bank customers.

4 hours ago, Caldera said:

Whenever I see an article like this one nowadays, I cannot help but wonder how much more onerous things will become for regular bank customers.

Indeed, you are right.  When the shoe bomber got caught, don’t remember how many years ago, the rest of the world travellers have had to pay by having to take their shoes off at airport security.

Banks these days everywhere are asking for tons of details and rechecking on an annual basis to the point of being time consuming and irritating.

 

This reminds me of having read somewhere about how hard it is for a single person to start a change/movement, the answer was, have you ever tried to sleep in a room with one mosquito?

So yes, one single person can make the rest of humanity suffer 😩

23 hours ago, John Drake said:

My Bangkok Bank card switched from Visa to Union Pay a few years ago. Was this to make it easier for Chinese and Russians to evade currency supervision? I don't know. I'm asking. Did Bangkok Bank help usher in the scamming by switching from US Visa to China Union Pay?

 

The same happened to me when I lived in Thailand. However after many complaints from customers regarding the use of Chinese Union Pay debit cards, including myself, I was soon issued with a Mastercard debit card. I no longer live in Thailand and I do not have a Thai bank account.

 

image.png.4e0620c1eadfb10c4214b040fd0f4114.png

20 hours ago, Caldera said:

Whenever I see an article like this one nowadays, I cannot help but wonder how much more onerous things will become for regular bank customers.

This is the problem. We are treated as mules unless we can prove otherwise. But the banks won't tell you how to prove otherwise.

On 11/6/2025 at 4:50 PM, John Drake said:

My Bangkok Bank card switched from Visa to Union Pay a few years ago. Was this to make it easier for Chinese and Russians to evade currency supervision? I don't know. I'm asking. Did Bangkok Bank help usher in the scamming by switching from US Visa to China Union Pay?

They do get to invest holdings ?

On 11/8/2025 at 7:46 AM, GreasyFingers said:

This is the problem. We are treated as mules unless we can prove otherwise. But the banks won't tell you how to prove otherwise.

 

Yes, like having to show a passport when depositing your money at your bank into your own bank account at the bank counter. - Thank god, a random person cannot easily deposit money into my bank account! 😆 

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