Bangkok Post – Cash limits for physical gold bar trades proposed

The Bank of Thailand is seeking public feedback on proposed cash payment limits for physical gold bar trades ‌at gold shops to improve transparency and oversight of transactions that could affect exchange rates.

Cash payments for gold bar transactions between ⁠gold shops and retail customers would be capped at a daily 1 million to ‌10 million baht per customer, per shop, the central bank said in a statement on the ⁠proposed rules, which are open for public consultation until Aug 20.

Cash payments for transactions between gold shops would be capped at a daily 10 million to 80 million baht per customer, per shop.

Earlier this year, the ‌central bank introduced rules to curb online gold trades, including a daily limit ⁠of 50 million baht per person per platform.

Customers would ⁠be required to personally receive or deliver gold bars under the proposal.

The rules would not limit the ⁠value of gold trades, but would require traceable payment channels for larger transactions to help prevent the use of funds of unclear origin, ‌it said.

The central bank has been taking a closer look at large cash transactions as part of a series of tighter measures to curb the grey economy and illicit financial activities.

Starting from Oct 1, it said recently, customers depositing more than 5 million baht in cash will be required to disclose the source of the funds.