Thailand’s financial institutions are backing a proposed 0.01% tax on gold transactions as authorities seek to restrict the use of gold in organised crime, including illegal gambling and money laundering.
The measure would apply to all gold transactions and is intended to create a record of activity that can be used to identify illicit funds. Supporters include the Bank of Thailand (BOT), which is also pursuing stronger safeguards against fraud, scams and money laundering across the financial system.
Financial information sharing
BOT plans to improve the exchange of financial information between commercial, state-owned and foreign banks, while also sharing relevant data with state authorities. The central bank said the approach is designed to create a bottleneck for criminals attempting to move funds through the financial system.
BOT Governor Vitai Ratanakorn said the measures introduced over the past 11 months could previously have appeared disconnected, but that the latest initiative was bringing together the wider finance industry.
The central bank has already mandated reporting for physical gold withdrawals of at least 2kg. Ratanakorn said this requirement had reduced requests for physical gold from 20bn baht (£447.9m) to 3bn baht (£67.2m).
Thailand’s illegal gambling market is estimated to be worth 1.1trn baht (£25.1bn) annually. The scale of that market highlights the volume of funds that criminal organisations may need to launder.
FATF identifies gambling risks
The proposed gold controls come as the Financial Action Task Force has highlighted the risk that online gaming and land-based casinos can be used for money laundering.
Its risk indicators include deposits made from multiple third-party accounts, extensive use of cash or virtual assets, regular betting across every possible outcome and automated betting patterns. The report also identified repeated VPN use, multiple accounts registered under fake names and efforts to bypass customer due diligence.
FATF President Giles Thomson said that without strong safeguards, online gaming and land-based casinos could become attractive gateways for fraudsters, professional money launderers and organised criminal networks.
He urged governments to respond to the indicators with risk-based measures. These include stronger oversight, action against illegal and offshore operators, greater international cooperation and deeper collaboration between public authorities and private-sector businesses.
