Thailand Weighs Gold Transaction Tax to Prevent Money Laundering

Thailand's liberal gold regime is under threat due to concerns about money laundering. Gold has become a means of converting grey money into legitimate funds, prompting regulatory oversight. The Bank of Thailand previously required transactions involving gold purchases made through applications to be reported when their value exceeded 10 million baht or 2kg, resulting in a 70% decline in unusual transactions.

However, such measures may be insufficient. Central bank governor Vitai Ratanakorn and Finance Minister Ekniti Nitithanprapas discussed introducing a transaction tax on gold trading. The proposed tax would enable authorities to track who is buying and selling gold more effectively.

The current priority is to establish a regulatory framework for gold trading that prevents it from becoming a channel for money laundering. A digital system would be used to track gold trading data, providing authorities with up-to-date information quickly.