Thai Central Bank Dismisses 'Grey Money' Fears, Calls Discrepancy Routine
The Bank of Thailand has clarified that a large statistical error in its 2024 accounts is a normal revision, not a sign of illicit funds, and has no effect on the current strength of the baht
- The Bank of Thailand has dismissed fears of illicit "grey money," explaining that a large statistical discrepancy in its 2024 balance of payments was a routine technical adjustment.
- The bank revised the Net Errors and Omissions (NEO) figure down from 530 billion to 230 billion baht, attributing the change to updated data on oil imports, foreign investment, and trade credit.
- Officials reassured that the revised discrepancy is below both global and national averages and has no impact on the current value of the Thai baht.
The Bank of Thailand (BOT) has moved to reassure the public that a large statistical discrepancy in its balance of payments data for 2024 is a routine technical adjustment and not a reflection of illicit "grey money" flows.
Speaking at a media briefing on Tuesday, BOT spokesperson Chayawadee Chai-anant announced that the country's Net Errors and Omissions (NEO) figure for 2024 has been revised downwards from 530 billion baht to just 230 billion baht.
Chayawadee explained that Thailand's revised NEO figure of 1.0% of international trade is below both the global average of 2.4% and the country's own historical average.
She insisted that NEO is a common statistical occurrence in all countries and does not signify that all of the unrecorded transactions are from illegal sources.
The spokesperson also clarified that the NEO figure has no bearing on the current value of the Thai baht.
The transactions in question took place in 2024, and their impact on the currency was felt at that time. The reclassification of these funds does not exert any additional pressure on the baht now.
Cracking Down on Illicit Funds
While dismissing the NEO figure as a source of concern, the BOT affirmed its commitment to combating illicit financial flows.
The bank is working with several key agencies to "connect the dots" on suspicious transactions.
Key measures include:
Inter-agency Collaboration: Coordinating with the Anti-Money Laundering Office (AMLO) to share data on suspicious transactions and with the Securities and Exchange Commission (SEC) to obtain data on digital asset transactions.
Encouraging Digital Payments: Promoting the use of digital systems like PromptPay to create a verifiable digital trail for all financial transactions.
Stricter Regulations: Enforcing more rigorous Know Your Customer (KYC) standards and cracking down on the use of so-called "mule accounts" to launder money.
Cautious Approach to Digital Assets: Maintaining a careful stance on cryptocurrencies and urging the government to close legal loopholes that could be exploited by illicit actors.
The bank attributed the significant reduction in the NEO figure to three main factors: a downward adjustment of oil import prices by the Customs Department, updated data on foreign direct investment, and an increase in trade credit.
