Problem borrowing baht but paying back via US bank account?

[grumpyoldman]

If I borrow Thai bahts from a friend who has money here, but I pay him back via our U.S. bank accounts, legally, is there a problem?

Yes, it will be more than 9,999$US.

Anyone know?

[lopburi3]

Suspect you are talking about becoming a foreign currency exchange service for a Thai with US expenses - paying them back inside the USA in USD for Baht you receive in Thailand? Am sure many people do (although believe much more common in the Philippines - USA area). But can not vouch for the legality.

[grumpyoldman]

Suspect you are talking about becoming a foreign currency exchange service for a Thai with US expenses - paying them back inside the USA in USD for Baht you receive in Thailand? Am sure many people do (although believe much more common in the Philippines - USA area). But can not vouch for the legality.

Not the case. Business startup where I would rather not have to pay transfer fees and get nicked by exchange rates.

[lopburi3]

Sounds the same to me - you have a use for funds in baht and they have a use for funds in USD so you both avoid exchange fees and set your own.

Guess you mean upfront is a loan - but in effect serves to save you both exchange issues in the long run.

[Suradit69]

Suspect you are talking about becoming a foreign currency exchange service for a Thai with US expenses - paying them back inside the USA in USD for Baht you receive in Thailand? Am sure many people do (although believe much more common in the Philippines - USA area). But can not vouch for the legality.

Not the case. Business startup where I would rather not have to pay transfer fees and get nicked by exchange rates.

Most likely problem would arise if you are ever asked to show a paper trail for currency used in establishing the business start-up.

As said, whatever your purpose, you are essentially doing currency trading and however innocent your intentions, someone could easily interpret it as money laundering. Are you likely to get caught or to actually be accused of doing something illegal? Probably not, but given the highly favorable exchange rate right now, does the risk really warrant the relatively small cost of transferring money through the proper channels?

The offense

Money laundering: Violators are punishable by imprisonment for a term of one year to 10 years and/or a fine of THB 20,000 to THB 200,000. Failure to comply with the Act’s reporting requirements is punishable by a fine of up to THB 500,000 and an additional fine of up to THB 5,000 a day for every day that one fails to comply. Filing a false report is punishable by imprisonment of up to two years and/or a fine of THB 50,000 to THB 500,000.

Regulation

The law, known as the Anti-Money Laundering Act (the Act), was passed in March 1999 with the aim of combating not only the drug trade, but other illicit activities, such as corruption, criminal fraud and prostitution.

Enforcement of the Act was not immediate, however. There were some initial delays in the establishment of an enforcement agency and in passing implementing legislation. Once established, enforcement of the Act started in October 2000 and during the first five months alone approximately THB 150 million in assets was seized. Since that time, billions of baht have been frozen and/or seized under the legislation.

Edited November 29, 2015 by Suradit69