International money transfer policy: Thailand

Published in

STICPAY

4 min readOct 23, 2019

Interesting fact that in Thailand the proportion of mobile banking users is highest 74% of internet users nationwide compared with statistics of other countries. The Thai government promotes itself for having online money transfers within major banks and an independent online money transfer services, relaxed rules of licensing for the last ones.

Government control

However, in Thailand as in other countries, a money transfer is under foreign exchange law control and Anti-Money Laundering laws.

The Bank of Thailand has been entrusted by the Ministry of Finance with the responsibility of administering foreign exchange.

According to Exchange Control Regulations in Thailand:

Any person bringing into or taking out of Thailand foreign currency bank notes in an aggregate amount exceeding USD 20,000 or its equivalent must declare it to a customs officer. There is no restriction on the amount of Thai baht notes that may be brought into the country. A person traveling to other countries (except Vietnam, China) is allowed up to THB 50,000 (USD 1,600) of local currency.
Any person purchasing, selling, depositing, or withdrawing foreign currencies with an authorized bank in an amount of USD 50,000 or above shall be required to report such foreign exchange transactions to the authorized bank in the form as prescribed by the Competent Officer.

Based on information from open sources, fund transfer in excess of around THB 700,000 (USD 20,000) must be reported by financial institutions to the Anti-Money Laundering Office (AMLO).

Bank wire documents and fees

For Thai citizens, the purpose of the international transfer is always required. For foreigners the proof of where the money comes from, or even a work permit, is required.

There are fees taken from both the receiving and sending banks, though these tend to total between THB 1,800–2,400 (USD 60–80), regardless of the amount of money transferred.

Usually, Thai banks charge 400–450 baht (USD 13–15) per transaction for wiring money. The fee charged doesn’t vary based on amount. That is a cost only for bank service, excluding the exchange rate.

ATM withdrawals limits and fees

Thai banks charge an ATM service fee of 200 baht (USD 6).

Based on research of some open sources, usually Thai ATM have withdrawal limits in a maximum of THB 20,000–25,000 (USD 660–830) per transaction.

Virtual currency

Currently, the use of cryptocurrencies in Thailand for payment transactions is still limited but the environment is friendly enough. For example, Zcoin XZC has become the first cryptocurrency which can be used nationwide in Thailand with five million registered local merchants.

Thai Central Bank Developing Own Digital Currency. It is generally issued for reducing costs and improving payment system efficiency.

The BOT has launched the Inthanon project, which is a test of money transfer systems between financial institutions using the CBDC model (wholesale CBDC) to increase the efficiency of the payment system infrastructure.

However, all transactions over USD 10 000 done through digital assets are reported and the information about customers has to be shared with Thai Officials to prevent money-laundering.

Credit and prepaid cards

To apply for a credit card for foreigners, you need to have a work permit and show proof of income. If you don’t have a work permit, you might still be able to get a credit card if you will deposit THB 100,000 to THB 200,000 (from USD 3 300 to USD 6 600)to the bank fixed deposit account.

There are some travel prepaid cards issued by remittance services, for example, Transferwise baht card.

There are no any other restrictions to send money to Thailand. The only requirements to identify the receiving party that the sender will need to provide if the transfer is made through the bank are:

Passport number of the receiving party
Address of the receiving party in Thailand
Telephone number of the receiving party.

Online providers transfers

This year the BOT has eased qualifications for international money transfer operators to attract new players for increasing competition and as a result to decrease transfer fee.

According to World Bank 2018 Migration and Remittance data, the fee for sending USD 500 from Thailand averages 7.28%, well above India, Malaysia at 3.09% and the average global rate of 4.64%.

Active players on Thai market: Western Union, MoneyGram, TransferWise, Skrill, STICPAY, Azimo, WorldRemit, InstaReM.

Money to Thailand

According to the exchange control document: ‘any person receiving foreign currencies from abroad is required to repatriate such funds immediately and sell to an authorized bank or deposit them in a foreign currency account with an authorized bank within 360 days of receipt, except for foreigners temporarily staying in Thailand for not more than three months, foreign embassies, international organizations including their staff with diplomatic privileges and immunities, and Thai emigrants who are permanent residents abroad or working abroad.’ (BOT document)

STICPAY for Thailand

STIC prepaid cards may be of interest to Thai customers. STIC cards can be used in more than 177 countries for ATM withdrawals and offline purchases. As well as in STICPAY you can deposit, transfer and withdrawal crypto (BTC, ETH, LTC). Also we have crypto-to-fiat converter. For details, please check website.

Sources

https://www.bot.or.th/Thai/ResearchAndPublications/Report/Pages/AnnualReport2018_box11.aspx#

https://www.bot.or.th/Thai/ResearchAndPublications/articles/Pages/Article_01Feb2019.aspx#

https://www.bot.or.th/app/feerate/internal.aspx?PageNo=5

https://www.bot.or.th/app/feerate/internal.aspx?PageNo=29

https://www.bangkokpost.com/business/1621506/bot-reduces-local-owner-requirement-for-transfers

https://www.unafei.or.jp/publications/pdf/RS_No67/No67_18VE_Prempooti.pdf

https://www.finder.com/using-a-credit-card-in-thailand

http://www.thailawonline.com/en/business/banks/transferring-money-to-thailand.html -

https://juslaws.com/news-legal-articles-thailand/money-transfer-regulations-tax-and-fees.php

https://www.bot.or.th/English/FinancialMarkets/ForeignExchangeRegulations/FXRegulation/Pages/default.aspx

https://www.renegadetravels.com/how-to-send-money-to-from-thailand/