BOT tightens cash withdrawal rules to curb money laundering and digital fraud

The Bank of Thailand is tightening oversight of cash-related transactions in a bid to close loopholes that can be exploited for money laundering, illegal fund transfers and digital fraud.

The new framework, announced on March 19 and due to take effect on April 1, 2026, requires financial institutions to strengthen risk management around cash withdrawals and certain cashier’s cheque transactions. BOT said cash transactions are convenient but harder to trace, making them more vulnerable to misuse and potentially damaging confidence in the financial system.

The central bank’s main focus is on money being withdrawn from the banking system. In practical terms, that means direct cash withdrawals, requests for cashier’s cheques and the encashment of uncrossed cashier’s cheques. BOT said customers using other channels, such as transfers or crossed cheques paid into an account, can continue to transact as normal.

Under the new rules, banks must verify a customer’s identity every time they carry out a covered cash transaction. At branches, that includes proof of identity, contact details and a signature, while electronic channels must use secure authentication such as a PIN, OTP or biometric verification. For new customers, banks may also need occupation or workplace details as part of the process.

The most important trigger is the daily threshold of Bt5 million. Once covered cash transactions reach that level, financial institutions must treat them as high risk and carry out enhanced due diligence. That means banks may ask for supporting documents, a clearer explanation of the purpose of the transaction, the source of funds, or further information about the customer’s business or beneficial ownership. If the explanation is not sufficient or the customer refuses to provide the necessary information, the bank must not proceed with that cash transaction.

To make the rules easier to follow, the key points are:

• Threshold: covered cash transactions of Bt5 million or more a day must receive enhanced scrutiny.
• Requirements: customers must verify their identity for each covered transaction, while banks may request extra documents for high-value cases.
• Affected groups: customers making large same-day cash withdrawals, cash-intensive businesses and those relying on uncrossed cashier’s cheques are likely to feel the biggest impact.

BOT also said financial institutions must monitor unusual behaviour, especially transactions that do not match a customer’s normal pattern. If suspicious activity appears to be linked to digital fraud risks, banks must also follow BOT’s separate digital fraud management requirements. They must report abnormal transactions to the central bank in the required format and keep records for inspection or legal use where necessary.

At the same time, BOT stressed that the tighter controls should not place an excessive burden on ordinary customers. It said banks must apply the rules in a way that is proportionate to risk and must handle affected customers fairly and promptly. The central bank also signalled that, although the current measures focus on cash withdrawals, the framework could later be extended to cash deposits and banknote exchanges if risks increase further.