Bangkok Post – Cash limits for physical gold bar trades proposed

Bank of Thailand considers caps of B1-10 million per retail customer per shop

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.