If you are planning on living in Thailand or doing business then you need to understand the exchange control laws. All foreign transactions fall under the Exchange Control Act which governs all foreign exchange transactions. During the course of 1990 foreign exchange controls have been relaxed by the Bank of Thailand to ensure that investment in Thai property does not wane.
Foreign currencies can be transferred or brought into Thailand without limit. 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.
Purchase of foreign currency from authorized banks is generally allowed upon submission of documents indicating international trade and investment. Companies in Thailand can engage in derivatives transactions with authorized banks to hedge against foreign exchange risk provided that supporting documents indicating future foreign currency receipts or obligations are submitted.
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 to a customs officer.
Foreign Currency Account of Non-Residents
Non-residents may maintain foreign currency accounts with authorized banks in Thailand without limit. The accounts can be freely credited with funds originating from abroad. Payments from Thai residents or borrowing from authorized banks can be deposited subject to supporting evidences. Balances on such accounts may be freely withdrawn.
Transfers in foreign currency for direct and portfolio investments in Thailand are freely permitted. Proceeds must be surrendered to an authorized bank or deposited in a foreign currency account with an authorized bank in Thailand within 360 days.
Repatriation of investment funds and repayment of overseas loans can be remitted freely upon submission of supporting documents to an authorized bank. For repatriation of investment funds, evidence of sale or transfer of such investment shall be submitted. For loan repayment, evidence of inward remittance of such loan and loan agreement shall be submitted.
Information from Bank of Thailand (BOT)
How do you know when the remittance is transferred into your account?
To support their customers, Krungthai Bank provides a maximum of three free e-Advices via e-Mail to instantly inform the customers first with a Pre – Advice on the inward remittance and when the remittance is transferred, in local currency, into their account and, finally, the Confirm Credit Advice.
Easy Inward Remittance Service, KTB Inward Remittance Service helps remove exporters’ unnecessary anxiety about:
• The information to be provided to the ordering party abroad;
• When is the remittance credit transferred to their bank account?
• The right exchange rates;
• The need for foreign exchange risk management
Those concerns become less of a worry with Krungthai Bank by simply providing the following information to the overseas remitter and exporters can rest assured that the remittance they are awaiting will be transferred into their accounts promptly and safely:
Pre – Advice
Customers receive an instant advice on inward remittance with the following details:
– The name of the foreign remitter;
– The currency involved;
– The account number of the beneficiary ofthe remittance and
– The amount remitted.
Confirm Credit Advice
Confirm credit entry into the customer’s accountwith the following details:
– Exchange rate;
– Remittance fee and
– The amount of remittance transferred into the related account.
KTB charges a 0.25% fee of the total remitted amount (minimum Baht 200, maximum Baht 500).