Notification of the Competent Officer on Exchange Control (No. 38) — Draft Amendment
Introduction
On 25 March 2026, the Competent Officer on Exchange Control issued the Draft Notification on the Criteria and Procedures for Foreign Exchange Transactions (No. 38) (the “Draft Notification”). The Draft Notification proposes amendments to the existing notification dated 31 March 2004 (as amended), with the principal objective of enhancing regulatory clarity and easing documentary requirements for certain foreign exchange (“FX”) transactions.
The proposed amendments primarily concern documentary requirements, the timing for submission of supporting documents, and the specific treatment of certain transaction categories, including FX purchases for foreign currency deposit (“FCD”) accounts, gold import payments, and hedging transactions. The Draft Notification is expected to have material practical implications for authorized juristic persons, financial institutions, and business operators engaged in cross-border FX transactions.
Key Amendments
1. FX Purchases for Own Foreign Currency Deposit (FCD) Accounts
Under the Draft Notification, where a customer purchases foreign currency solely for deposit into its own FCD account, authorized juristic persons are no longer required to request supporting documents, irrespective of the transaction amount.
This amendment represents a significant relaxation of administrative requirements and reflects a regulatory policy direction toward facilitating liquidity management and FX flexibility for market participants. Supervisory oversight will continue to be exercised under the existing FCD regulatory framework.
2. FX Purchases for Gold Import Payments
In contrast to the relaxation described above, the Draft Notification expressly tightens documentary requirements for FX purchases made for the purpose of settling payments for imported gold.
For such transactions, authorized juristic persons must request supporting documents in all cases, without regard to transaction value. No monetary threshold or exemption applies.
This differentiated treatment reflects the regulator’s continued emphasis on monitoring transactions considered to carry heightened financial, market, or systemic risk.
3. Timing for Submission of Supporting Documents
The Draft Notification clarifies and differentiates timing requirements for the submission of supporting documents as follows:
General Rule Supporting documents must be submitted on the transaction date (the “Trade Date”).
Relaxation for Certain Spot Transactions For spot FX transactions not related to gold import payments, authorized juristic persons may, where justified by necessity and reasonableness, permit the submission of supporting documents on the settlement date (the “Settlement Date”) in lieu of the Trade Date.
Mandatory Submission on the Settlement Date Submission of supporting documents on the Settlement Date is required for:
- forward FX transactions with a value of USD 200,000 or equivalent or more; and
- FX purchases for gold import payments, regardless of amount.
4. FX Transactions for Hedging Based on Forecast Exposure
For FX transactions entered into for the purpose of hedging or managing exchange rate risk arising from forecast exposure, the Draft Notification introduces greater flexibility in the categories of acceptable documentation.
In addition to forecast-based documents, customers may now submit:
- evidence of underlying obligations; or
- documents demonstrating exposure to exchange rate risk, such as billing notices or contractual indicators.
This change more closely aligns regulatory practice with commercial reality, particularly in the context of treasury and risk management operations.
5. Sale of Foreign Currency by Residents
The Draft Notification amends the existing provisions governing the sale of foreign currency by persons resident in Thailand, applicable to both spot and forward transactions.
Authorized juristic persons are permitted to facilitate such transactions on a broader basis, in particular where the seller:
- will receive foreign currency income in the future; or
- maintains funds in its own FCD account.
This amendment provides additional operational flexibility while preserving applicable reporting and disclosure obligations.
Key Takeaways
- FCD Transactions: FX purchases for deposit into a customer’s own FCD account no longer require supporting documents, regardless of amount.
- Gold Imports: FX purchases for gold import payments remain strictly regulated, with mandatory documentation required in all cases.
- Document Timing: While the Trade Date remains the default submission deadline, limited flexibility has been introduced for non-gold spot FX transactions.
- Large Forward FX Transactions: Forward contracts valued at USD 200,000 or more require documentation to be submitted on the Settlement Date.
- Hedging Transactions: A broader range of documentary evidence is now acceptable for forecast-based hedging arrangements.
- Operational Impact: Financial institutions and business operators are advised to review and update their internal policies, compliance checklists, and transaction workflows to ensure alignment with the Draft Notification.
Author: Panisa Suwanmatajarn, Managing Partner.
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