Thai Banks To Face Rigorous Compliance Regulations Starting June

[webfact]

File photo credit: Wikipedia

 

Thailand is set to implement stringent new compliance regulations for customers opening bank accounts, in response to a sharp rise in the misuse of these accounts for illicit or fraudulent activities. From November last year through the present, Thai authorities have closed over 300,000 "mule" accounts. 

 

These regulations, as promulgated by the Bank of Thailand, the Anti-Money Laundering Office (AMLO), the Securities and Exchange Commission, and the anti-online scam centre AOC 1441, are poised to take effect by June 1st, as confirmed by Prasert Jantararuangtong, Minister of Digital Economy and Society. All banks will now be required to strictly adhere to a Customer Due Diligence (CDD) approach.

 

Local experts from the Thai authorities estimate that accounts exploited for offences could tally up to one million. Growing compliance in the digital banking sector has been encouraged due to the sustained efforts of financial institutions and related government initiatives.

 

The digital banking market in Thailand is projected to grow by 8.69% between 2024 and 2028, as per Statista research. This growth trajectory is likely to be aligned with a surge in compliance-related efforts, aimed at meeting regulatory mandates and safeguarding against financial crimes.

 

The Thai banking sector, a historical pillar of the nation’s economy, has been undergoing a significant transformation. McKinsey’s findings suggest a potential regain of regional clout, with a shift towards digital banking that necessitates a robust compliance framework to ensure transactional integrity.

 

In closing, Thailand's digital banking sector's compliance industry is witnessing dynamic changes driven by regulatory strides, technology, and a commitment to enhancing the digital banking experience. As the sector evolves, compliance will form a foundational anchor, ensuring a secure, sustainable digital banking revolution, tuned with international best practices.

 

These changes offer both opportunities and challenges to compliance professionals, who shall remain at the forefront of shielding the financial ecosystem from emerging risks.

 

-- 2024-05-11

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[In Full Agreement]

 

Wasn't it already difficult enough for some foreigners to open a  Thai bank account?

 

 

[Tropicalevo]

2 minutes ago, In Full Agreement said:

 

Wasn't it already difficult enough for some foreigners to open a  Thai bank account?

Most 'mule' accounts are opened by Thais

[brianthainess]

6 minutes ago, In Full Agreement said:

 

Wasn't it already difficult enough for some foreigners to open a  Thai bank account?

 

 

Yes the Catch 22 situation, Immigration want an account in your name, most banks say No you can't you need a 1 year Visa/extension.......

[NanLaew]

13 minutes ago, In Full Agreement said:

 

Wasn't it already difficult enough for some foreigners to open a  Thai bank account?

 

 

 

Obviously not for dodgy Slavic and eastern Mediterranean types with bulging wallets who are dodging the conflict zones and laundering their 'investments'.

[NanLaew]

12 minutes ago, Tropicalevo said:

Most 'mule' accounts are opened by Thais

 

And most of them are probably proxy accounts for those who can't.

[NanLaew]

7 minutes ago, brianthainess said:

Yes the Catch 22 situation, Immigration want an account in your name, most banks say No you can't you need a 1 year Visa/extension.......

 

Many British and American citizens are denied opening or even maintaining a bank in their homelands because of their chosen 'immigration status'.

[JackGats]

There would be freedom of movement of individuals they said. Then came the compliance/money laundering charade, and individuals got denied bank accounts except in their homeland, and then only provided they stayed to reside there.

 

Soon we will have as much liberty of movement as the people in the UDSSR during the cold war. This will be achieved through the denial of banking services.

 

 

[herfiehandbag]

55 minutes ago, webfact said:

File photo credit: Wikipedia

 

Thailand is set to implement stringent new compliance regulations for customers opening bank accounts, in response to a sharp rise in the misuse of these accounts for illicit or fraudulent activities. From November last year through the present, Thai authorities have closed over 300,000 "mule" accounts. 

 

These regulations, as promulgated by the Bank of Thailand, the Anti-Money Laundering Office (AMLO), the Securities and Exchange Commission, and the anti-online scam centre AOC 1441, are poised to take effect by June 1st, as confirmed by Prasert Jantararuangtong, Minister of Digital Economy and Society. All banks will now be required to strictly adhere to a Customer Due Diligence (CDD) approach.

 

Local experts from the Thai authorities estimate that accounts exploited for offences could tally up to one million. Growing compliance in the digital banking sector has been encouraged due to the sustained efforts of financial institutions and related government initiatives.

 

The digital banking market in Thailand is projected to grow by 8.69% between 2024 and 2028, as per Statista research. This growth trajectory is likely to be aligned with a surge in compliance-related efforts, aimed at meeting regulatory mandates and safeguarding against financial crimes.

 

The Thai banking sector, a historical pillar of the nation’s economy, has been undergoing a significant transformation. McKinsey’s findings suggest a potential regain of regional clout, with a shift towards digital banking that necessitates a robust compliance framework to ensure transactional integrity.

 

In closing, Thailand's digital banking sector's compliance industry is witnessing dynamic changes driven by regulatory strides, technology, and a commitment to enhancing the digital banking experience. As the sector evolves, compliance will form a foundational anchor, ensuring a secure, sustainable digital banking revolution, tuned with international best practices.

 

These changes offer both opportunities and challenges to compliance professionals, who shall remain at the forefront of shielding the financial ecosystem from emerging risks.

 

-- 2024-05-11

Get our Daily Newsletter - Click HERE to subscribe

Can anyone define a mute account? I have accounts with three Thai banks. One I use all the time, one occasionally and one as a spare - in which I keep a thousand Baht.

[NanLaew]

39 minutes ago, JackGats said:

There would be freedom of movement of individuals they said. Then came the compliance/money laundering charade, and individuals got denied bank accounts except in their homeland, and then only provided they stayed to reside there.

 

Soon we will have as much liberty of movement as the people in the UDSSR during the cold war. This will be achieved through the denial of banking services.

 

 

 

The relentless march towards the cashless society got a big boost during Covid. There's no turning that back now. Go crypto.

[NanLaew]

17 minutes ago, herfiehandbag said:

Can anyone define a mute account? I have accounts with three Thai banks. One I use all the time, one occasionally and one as a spare - in which I keep a thousand Baht.

 

It's "mule" account.

 

"A money mule is someone who lets someone else use their bank account to transfer money, often keeping a little bit for themselves. If you get caught, you could get a criminal record. "

 

https://www.nationalcrimeagency.gov.uk/moneymuling

[herfiehandbag]

Ah, my misreading. Thank you.

[JAS21]

My experience is that it is now much harder for someone like myself…retired… to open a bank account.

 

I have been with CIMB Thai for many years yet they won’t let me open another account. 
 

I actually have accounts with three different banks, I don’t really need them all but dare not close as in the future I may need and maybe cannot open again. If you have a work permit then usually no problem

[sstuff3]

Long article informing that banks will have new compliance laws in June, but not one mention of what the new compliance measures are......

[newbee2022]

3 hours ago, In Full Agreement said:

 

Wasn't it already difficult enough for some foreigners to open a  Thai bank account?

 

 

Should be only possible for one year extension visas and regular residence. And a minimum deposit of 10.000 Baht.🙏

[khunpin]

2 hours ago, NanLaew said:

Go crypto.

Only criminals and wannabe HiSos want to use crypto. 

Hide something or show-off. 

Nobody NEEDS crypto ! 

[Bravoxray]

Looks like another step to implementing a Central Bank Digital Currency that will be used for enslavement.

[BritScot]

2 hours ago, NanLaew said:

 

The relentless march towards the cashless society got a big boost during Covid. There's no turning that back now. Go crypto.

Sorry to disappoint but in the UK digital is stuttering as people have started to revert back to cash. 

[IamNoone88]

Nothing here for law abiding expats to be concerned about. This is to shut down scam centres and illegal gambling accounts. Its a good thing, especially if you have been a victim.

[natway09]

No where in the article did it mention foreigner.

Considering it is mule accounts they are trying to diminish the finger will be pointing at Thais

[topt]

8 minutes ago, newbee2022 said:

Should be only possible for one year extension visas and regular residence.

Why?

 

What about younger people still working and travelling in and out or older doing same......but still spending a fair amount of their time here.

Why should they be penalised?

[StayinThailand2much]

3 hours ago, In Full Agreement said:

 

Wasn't it already difficult enough for some foreigners to open a  Thai bank account?

 

Guess, they will particularly target foreigners again. It might be easier to swim in clean water at Pattaya Beach in the future than opening a bank account...

[Liverpool Lou]

3 hours ago, In Full Agreement said:

 

Wasn't it already difficult enough for some foreigners to open a  Thai bank account?

There was no suggestion that the regulations are to make it more difficult for foreigners to open bank account, or that they will.

[StayinThailand2much]

5 minutes ago, IamNoone88 said:

Nothing here for law abiding expats to be concerned about. This is to shut down scam centres and illegal gambling accounts. Its a good thing, especially if you have been a victim.

 

You don't know that. Some banks may actually go beyond that by refusing to open bank accounts for foreigners in the future, just in case...

[herfiehandbag]

17 minutes ago, newbee2022 said:

Should be only possible for one year extension visas and regular residence. And a minimum deposit of 10.000 Baht.🙏

Blimey, it's Harry Enfield: " Oiy am considerably richer than you"!

[Presnock]

3 hours ago, NanLaew said:

 

Many British and American citizens are denied opening or even maintaining a bank in their homelands because of their chosen 'immigration status'.

The State Department Credit Federal Credit (sdfcu.org) will open accounts for Americans living overseas (do not have to be a US govt nor StateDept employee), full account, credit cards, etc.  I have been a member for over 4 years when my BOA account (50 years in use) was closed since I had no US address or phone numer.  My  pension check goes to them and then I transfer how much I want whenever.  No problems.  I also have seen on this forum other banks too incuding I think EUR citizens are able to open accounts.  Ask that question and folks will probably answer you,. Good luck

[Liverpool Lou]

2 hours ago, herfiehandbag said:

Can anyone define a mute account? I have accounts with three Thai banks. One I use all the time, one occasionally and one as a spare - in which I keep a thousand Baht.

"Mule" accounts, not "mute" accounts. A mule account is an account opened by an individual who is paid to do so, the passbook and card for which is then passed on to a third party for, usually, nefarious use.  Your accounts are neither "mute" nor "mule".

[Liverpool Lou]

21 minutes ago, Bravoxray said:

Looks like another step to implementing a Central Bank Digital Currency that will be used for enslavement.

Gawd...  Such b0llocks.

[AAArdvark]

Details please

[new2here]

3 hours ago, brianthainess said:

Yes the Catch 22 situation, Immigration want an account in your name, most banks say No you can't you need a 1 year Visa/extension.......

to me there’s a somewhat easy fix .

 

Mandate that any account that is used for purely immigration purposes (ie holding X baht for visa issuance/renewal basis) be done so at Krungthai Bank … and concurrent with that, mandate that any Krungthai bank will open accounts for any foreigner IF said account will be used for his/her immigration purposes.

 

Id choose Krungthai as they are the defacto state bank for retail and institutional affairs (but also true they are also partially publicly held and whose shares trade on the domestic equity exchange) and the one most integrated into the governments business. 

 

for consumer protection you could add restrictive language like these accounts must earn a minimum of the BoTs BIBOR (or some other consumer based rate) and that it is liquid to the extent required by Immigration.  That way there is little financial downside to holding your funds at Krungthai, you’re assured that you be an actually get an account and that they account type meets the immigration rules. 

 

Two upsides.. As Krungthai is largely a SOE you’re essentially providing capital to a SOE.. and #2, you’d essentially kill off that catch-22 of needing an account to get your long term visa/renewal, but can’t get an account until you have that long term visa/renewal.