Already difficult to open a Thai bank account - and it's about to get tougher

[Gaybutton]

For many years I have been urging those of you contemplating retirement to open a Thai bank account while it is still not overly difficult. In recent years it became more and more difficult for farang to open a Thai bank account. Beginning in June it's about to get even more difficult. As far as I know, visa services such as Mots ( https://www.mots-services.com/ ) will still be able to get you a Thai bank account. Whether that will last much longer, I have no idea. But if you have any reason to think either now or at some point in the future you may need a Thai bank account, the time to act is now - before it becomes too difficult or even impossible.

Despite the fact that nearly all "mule" accounts have been opened by Thais, it's going to get tougher for farang too.

As my father used to advise, "Do it now. RIGHT now!"
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Thai Banks To Face Rigorous Compliance Regulations Starting June

May 11, 2024

Thailand is set to implement stringent new compliance regulations for customers opening bank accounts, in response to a sharp rise in the misuse of these accounts for illicit or fraudulent activities. From November last year through the present, Thai authorities have closed over 300,000 "mule" accounts.

These regulations, as promulgated by the Bank of Thailand, the Anti-Money Laundering Office (AMLO), the Securities and Exchange Commission, and the anti-online scam centre AOC 1441, are poised to take effect by June 1st, as confirmed by Prasert Jantararuangtong, Minister of Digital Economy and Society. All banks will now be required to strictly adhere to a Customer Due Diligence (CDD) approach.

Local experts from the Thai authorities estimate that accounts exploited for offences could tally up to one million. Growing compliance in the digital banking sector has been encouraged due to the sustained efforts of financial institutions and related government initiatives.

The digital banking market in Thailand is projected to grow by 8.69% between 2024 and 2028, as per Statista research. This growth trajectory is likely to be aligned with a surge in compliance-related efforts, aimed at meeting regulatory mandates and safeguarding against financial crimes.

The Thai banking sector, a historical pillar of the nation’s economy, has been undergoing a significant transformation. McKinsey’s findings suggest a potential regain of regional clout, with a shift towards digital banking that necessitates a robust compliance framework to ensure transactional integrity.

In closing, Thailand's digital banking sector's compliance industry is witnessing dynamic changes driven by regulatory strides, technology, and a commitment to enhancing the digital banking experience. As the sector evolves, compliance will form a foundational anchor, ensuring a secure, sustainable digital banking revolution, tuned with international best practices.

These changes offer both opportunities and challenges to compliance professionals, who shall remain at the forefront of shielding the financial ecosystem from emerging risks.

https://aseannow.com/topic/1327027-thai ... ting-june/

[Jun]

All banks will now be required to strictly adhere to a Customer Due Diligence (CDD) approach.

I shall have to watch the scope of this Customer Due Diligence.

If applied only to NEW accounts, I'm OK.
If they do some basic due diligence on existing accounts, there might be more risk. Top of my concern list would be the address registered when I opened the account. That was a hotel address, admittedly with the hotel name omitted.
The moment they start writing to that address or demanding proof of address, I have a problem.

I'm quite keen to keep the account, since it saves me a fortune in ATM fees and I expect the proportion of time I spend in Thailand is more likely to increase than decrease.

[Gaybutton]

If they do some basic due diligence on existing accounts, there might be more risk.

I don't think you have to worry. It probably applies mostly to new accounts. The only reason they would have for investigating an existing account would be if criminal activity is suspected and they have evidence to support it. And even if for some reason they suspect your account they would still have to question you before forcibly closing or freezing the account. They're not going to arbitrarily start closing people's accounts without solid evidence to justify it unless, of course, they want the problems that would quickly bring.

I very much doubt people who already hold Thai bank accounts and are not involved in criminal activity have anything to worry about. The point is it's going to be much more difficult to open new accounts. And if a visa service opens the account for you and it turns out to be a criminal account, I suspect the service that opened it will be in big trouble and held liable. So, I think the visa services are going to be much more stringent about who they're opening accounts for.

Also, in the OP I posted the wrong link to the article. I have corrected it and now the link will open the article correctly.

[Dodger]

Gee...I wonder what they'll do with the thousands of mule accounts currently managed by the Visa Agents???