Stricter checks for 5-million-baht withdrawals from April 1

Banks may refuse undocumented large cash withdrawals

Financial institutions in Thailand will designate any cash withdrawal of 5 million baht or more in a single day as a high‑risk transaction from April 1, 2026, with customers required to provide clear explanations and supporting documents on the source and purpose of the funds.

According to a Bank of Thailand (BoT) directive published in the Royal Gazette on Thursday, banks must apply enhanced customer due diligence (EDD) to such transactions.

This includes obtaining up‑to‑date information from reliable sources on a customer’s business or occupation, workplace and beneficial owners and requesting documentation that substantiates the need for cash. Where necessary, institutions must adjust a customer’s risk profile to high and conduct intensified checks.

If a customer cannot supply adequate information or documents, banks may refuse the cash transaction. Where customers provide reasonable grounds and demonstrate necessity but documentation remains incomplete, banks may still serve them under stricter risk‑management controls, such as limiting cash amounts or directing clients to use traceable channels.

The guidance requires strong identity verification for services via electronic branches or devices—whether card‑present or not—using secure methods such as PINs (Personal Identification Numbers), one‑time passwords, in‑app authentication or biometric verification.

The BoT said the tightening focuses initially on cash withdrawals, including transactions stemming from cash cheques that result in cash being taken out. Banks are also instructed to ask customers about the purpose of unusually large cash transactions and to keep procedures aligned with the risk level of the transaction and/or the customer.

According to the central bank, cash transactions are easy to conduct without leaving sufficient records of activity or identity, hampering the tracing of money flows. The new rules aim to prevent financial institutions from being misused for criminal activity and to better protect banking customers.

The directive takes effect from April 1.

BoT governor Vitai Ratanakorn recently said his agency detected unusually large cash withdrawals totalling more than 250 million baht, with some customers requesting only 500-baht banknotes. 

The central bank will also tighten regulations on currency exchange operators. Daily exchange limits will be capped at 800,000 baht per person, and at 200,000 baht in border areas to prevent illicit cash from entering the formal financial system.