Bank of Thailand Intensifies Crackdown on Fraudulent Accounts

[webfact]

 

The Bank of Thailand has ramped up efforts to combat mule bank accounts, central to numerous financial fraud operations, by enforcing stricter measures to freeze suspicious activities. This initiative aims to disrupt criminal networks and safeguard the financial system.

 

In late 2022, a decree was enacted to prevent and suppress technological crimes, with a key focus on mule accounts.

 

These accounts are often used to launder money, making it difficult for law enforcement to trace illicit transactions. Previous strategies had limited success, prompting the BoT to adopt a more robust approach.

 

Deputy Governor Ronnadol Numnonda explained that efforts will now focus on an individual-level plan rather than just scrutinising accounts.

 

Banks will collaborate using data from the Anti-Money Laundering Office, the Central Fraud Registry, and the grey mule database. This collective information allows banks to flag and monitor high-risk accounts swiftly.

 

Banks issued a circular to implement these enhanced measures, ensuring that suspicious activities are flagged and managed efficiently. If an individual’s name appears in connection with financial crimes, their accounts will be frozen, and they will be prevented from opening new ones.

 

To further foil fraudulent activities, the BoT instructed banks to tighten procedures for opening accounts, particularly for high-risk individuals.

 

This may include additional documentation, restricted mobile banking services, or outright account denial. Banks will tailor actions based on the assessed risk level.

 

Additionally, the BoT is pushing for the introduction of more secure banking products and services to protect customer transactions. New features will include transaction locks, reduced transaction limits for facial recognition payments, and approval requirements for money transfers.

 

From March 1, 2022, to May 31, 2023, the Royal Thai Police reported over 63 billion baht in financial fraud, with investment scams making up 36% and money transfer fraud 28%.

 

These figures underscore the urgency and importance of the BoT's stepped-up measures to safeguard Thailand's financial integrity.

 

File photo courtesy: Hit in Thai

 

-- 2024-06-14

 

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[hotchilli]

The banks can act on information supplied to them regarding suspect accounts, but I doubt they have the power, trained staff or inclination to monitor all accounts and try to decipher between legit accounts and fraudulent ones.

[john donson]

2024 and there is no thai AI that can instantly check millions of fraudulent accounts and get them blocked till ID is verified?

[Tropicalevo]

The freezing of bank accounts is not covered by ordinary laws.

Back in the UK, NatWest froze one of my accounts.

The Americans were involved. They told Nat West to freeze it.

I was guilty (of what, I do not know) and I had to prove my innocence. ie was the money legit.

It took about four months for me to get my money.

That was a tad inconvenient as it was my salary that was paid into that account.

 

This was about 24 years ago and I was working in Thailand at the time and some money came from here.

In submitting the paperwork to prove my innocence, some of it was in Thai.

They said that I had to get official translations.

I sent them a Thai/English dictionary.

They released my money.

[Maitdjai]

As "Tax" is the new magic word in TiT, it looks very attractive to the BOT, and the Government, to "copy" the efforts of the 1st world countries to control the money flow, and the assets of the individual. The problem is the common incapability, of being overwhelmed by the details to achieve the announced "big time" tasks. Like on so many bandwagons, they jumped on.
 

4 hours ago, webfact said:

Banks will collaborate using data from the Anti-Money Laundering Office, the Central Fraud Registry, and the grey mule database. This collective information allows banks to flag and monitor high-risk accounts swiftly.

Who are the "grey mules" in the database? Locals (Nominees) also, or only "foreigners"?
What is a "high-risk" account?
 

 

4 hours ago, webfact said:

Banks issued a circular to implement these enhanced measures, ensuring that suspicious activities are flagged and managed efficiently. If an individual’s name appears in connection with financial crimes, their accounts will be frozen, and they will be prevented from opening new ones.

What is the content of this "circular"? What, and how will the flags be managed "efficiently"? Who legitimizes the freezing of an account?

A branch supervisor?

 

5 hours ago, webfact said:

To further foil fraudulent activities, the BoT instructed banks to tighten procedures for opening accounts, particularly for high-risk individuals.

This may include additional documentation, restricted mobile banking services, or outright account denial. Banks will tailor actions based on the assessed risk level.

Here we are again. More hurdles of "documentation", photocopies, and paper shoveling. From here to here, from there to there.
Who (again), determines the limiting of available services of an account? The branch supervisor?

 

5 hours ago, webfact said:

Additionally, the BoT is pushing for the introduction of more secure banking products and services to protect customer transactions. New features will include transaction locks, reduced transaction limits for facial recognition payments, and approval requirements for money transfers.

"Protect customer transactions" sounds always very good, but it is usually abused to implement transaction -limits, or even locks,
and to get control of assets.

Good customer protection is a secured, and reliable App. Not to limit the freedom of the user, to command his funds.
Btw, the main reasons for online fraud are greediness and bargain hunting of naive people, who are getting scammed.
The banks never took, and never will take any responsibility for online fraud.

More or less, the common substanceless phrases. At least, the main aim gets clear: Control everybody and everything.

 

[Purdey]

I guess that people who rail against criminals ("hang them!" and "throw away the key!") will be the first to complain about additional security measures.

[Maitdjai]

3 hours ago, hotchilli said:

The banks can act on information supplied to them regarding suspect accounts, but I doubt they have the power, trained staff or inclination to monitor all accounts and try to decipher between legit accounts and fraudulent ones.

For that, the result will only be more hurdles and complicated procedures.
An administration system inclines to hide its incapability with artificial, sometimes even arbitrary, complications,
to keep adminstrating itself.
The very "welcomed" side effect (or intention?), besides the already forced reduction of cash flow, is the "ability", to have control over the funds,
and every person, who holds a bank account. The repeatedly prespecified "customer protection" is a secondary badge. 
So nothing else, as a wishful blueprint of the globalist plans in Western countries. 
 

[watchcat]

2 hours ago, Purdey said:

I guess that people who rail against criminals ("hang them!" and "throw away the key!") will be the first to complain about additional security measures.

 

I think you could be right on this guess.

[Bosse137]

In a branch of former Thai Military Bank,I put in 500 Baht at the end of every month.I do so in order to make it more easy for immigration to follow and understand what happens in my account.The fact,that I never take out any money at any time is not enough for imm. to deside,that I have followed the rules....Anyway,everytime,the staff in the bank must go throw the same process;copies of my passport,with me signing them,checking all kinds of data,like when the visa expire and so on.Seems they also have  their own notes on me,that had to be scrutinized.Since it is the same staff doing this every time,I ones asked them,if they couldn`t rememeber me.The answer was,that it had to be done every time,regardless of how often I visited them and how small the sum I deposited was..For next 1 year extension,I will of course use another bank.