The Minister of Digital Economy and Society Prasert Jantararuangtong reported that these regulations, set to be implemented by June 1, require all banks to rigorously apply the “Customer Due Diligence (CDD)” approach, mandating thorough scrutiny of potential account holders and the purposes for which they intend to use their accounts.
As per this announcement and in response to the disclosure of company proxies being used for illegal business practices, the Thai Government is set to enforce stricter regulations for the opening of new bank accounts in response to the confirmation and subsequent closure of over 300,000 fraudulent accounts over the last six months.
These particular accounts were closed in response to the misuse of a Thai Nominee or mule as being the account holder in name only. These include using these individuals in fraudulent company formation as well as the financial activities of a bank account which in turn is required by law but is being used under false pretenses.
The initiative, on the other hand, which had been actively pursued by the Anti-Online Scam Center (AOC 1441) and in collaboration with the Bank of Thailand, the Anti-Money Laundering Office (AMLO), and the Securities and Exchange Commission, have worked together to curb the misuse of banking services for fraudulent activities.
The Minister of The Digital Economy and Society Prasert Jantararuangtong reported that these regulations, set to be implemented by June 1, require all banks to rigorously apply the “Customer Due Diligence (CDD)” approach, mandating a thorough scrutiny of all potential account holders as well as for what purposes or intent the account holder has for the specified account.
AMLO Deputy Secretary-General Pol Maj Gen Eakkarak Limsunggas also offered further insights into the size and scale of illicit activities the country is currently facing. The Deputy Secretary General stated that the total number of mule accounts may currently reach upwards of a million accounts once officially tabulated.
These suspicious accounts are often linked to influential people in the community who are suspected to coerce or pay vulnerable individuals to use their identities which are then submitted to open these accounts. Upon being granted with the account, scammers will often use these and other accounts in further criminal activities such as financial crimes including online scams and money laundering activities. It was also shared that police had previously discovered instances where over 50 bank accounts were registered under a single individual. In these cases, the name of the individual was being used over and over to unlock new accounts which would allow the movement of money from various sources in and out of the account under false pretenses.
With these upcoming regulations coming into effect next month, the ability for criminal networks to proceed in financial improprieties as they had in the past will now be particularly hampered in doing so. As such, this step along with continued efforts by NBTC and Law Enforcement Officials to respond to call center activities and financial scams further by restricting online accessibility and enforcement activities is another measure to aid in the disruption of these criminal networks which are normally discovered to be part of a larger International syndicate.
If you or anyone you know of has been a victim of a crime or think that you are in need of legal assistance, then please note to contact a reputable law firm with an experienced legal team who may assist you.
If you need legal advice regarding this or any other instances of suspicious activities against an individual or company in the community, please feel free to email us at info@rwtlaw.co.th for a free consultation and advice.
