BoT plans joint crackdown on illicit money, backs proposed 0.01% gold tax

The Bank of Thailand (BOT) will join financial institutions and relevant agencies on September 10, 2026, to announce stronger commitments against illicit financial flows, while supporting a proposed 0.01% tax on gold transactions to improve the tracking of money.

Governor Vitai Ratanakorn said the joint declaration would set out clearer responsibilities for participating organisations, with commercial banks and non-bank financial service providers expected to commit to preventing the financial system from facilitating fraud, scams and money laundering.

The initiative forms part of the “Bangkok Blueprint”, a framework Thailand aims to establish as a model for managing financial crime risks that other countries could adopt.

Vitai said the cooperation would also strengthen foreign investors’ confidence in the safety and transparency of Thailand’s financial system and its ability to trace suspicious transactions effectively.

Stopping illicit funds before they leave bank accounts

The central bank’s preventive measures focus particularly on the point at which criminal proceeds are withdrawn or transferred out of the banking system.

These include conditions on cash withdrawals exceeding 5 million baht and cooperation with the Securities and Exchange Commission (SEC) to examine unusually high trading volumes involving the digital asset USDT.

Vitai said money generated by fraud, scams or online gambling could be converted into gold, foreign currency or digital assets. Closing gaps at the point where funds leave bank accounts was therefore central to preventing laundering.

“Money obtained through fraud, scams or online gambling ultimately has to be withdrawn from accounts to be laundered in other forms, whether gold, foreign currency or digital assets. That is why we must stop the money at the point where it is about to leave the system,” he said.

Proposed gold tax would improve transaction visibility

Vitai supports greater oversight of gold trading so authorities can identify buyers and sellers and establish the value of transactions.

He said shares, corporate bonds and cryptocurrencies already had transaction records that could be examined, whereas information on some gold trades remained insufficient. Those gaps could allow the market to be exploited for money laundering.

The BOT therefore supports the proposed specific business tax of 0.01% on gold transactions, which the Finance Ministry is considering.

The principal purpose would be to establish systematic transaction reporting and improve the tracing of financial flows, rather than generate government revenue.

At that rate, a gold transaction worth 70,000 baht would incur a tax of 7 baht. Although small relative to the transaction value, the reporting mechanism could give authorities greater visibility over money movements.

Governor rejects blanket criticism of gold shops

Vitai stressed that support for transaction reporting should not be interpreted as an accusation against the gold trade as a whole. The intention was to prevent some shops from being used to convert illicit funds into gold.

“We are not saying gold shops are bad. But we believe some are being used as a channel to turn improperly obtained money into gold. Being able to see these transactions would greatly help the country,” he said.

He added that cases involving money laundering through gold trades and a failure to report transactions as legally required would provide a clearer basis for investigation and criminal proceedings.

The Finance Ministry, however, would determine the tax structure, collection method and final rate.

Vitai’s support for the proposal does not constitute a decision to introduce the levy.