Webull called to explain KYC gaps over money-laundering concerns

A House committee on anti-money laundering and narcotics suppression has summoned executives from Webull Thailand to clarify the company’s customer screening and anti-money-laundering measures, after concerns emerged that online investment platforms could be exploited as channels for moving illicit funds.

The committee is examining the know-your-customer and customer due diligence standards, known as KYC/CDD, used by Webull Securities (Thailand) Co Ltd. The review follows complaints that an online securities trading platform may have been used to park and transfer money linked to financial crime.

An urgent letter dated June 2, 2026 invited Chonladet Khemarattana, chief executive officer of Webull Securities (Thailand), to give evidence to the committee on June 11 at Parliament. He has been asked to explain the company’s customer screening process, anti-money-laundering procedures and risk-control measures.

The committee views the issue as more than a technical weakness at an investment platform. It warned that if securities firms become loopholes in the financial system for transnational criminal networks, the case could damage the image and credibility of Thailand’s capital market as a whole.

Scam case leads to capital-market scrutiny

The investigation stems from an operation by the Central Investigation Bureau (CIB) and the Anti-Online Scam Operation Centre (ACSC), which expanded from a fraud case involving a retired government official in Pathum Thani who lost more than 1.4 million baht.

Further investigation found more than 30 victims linked to the wider network. Initial checks found that the group had monthly fund flows of more than 100 million baht, while total damage may have reached as much as 1 billion baht per month.

Authorities found that the alleged network had developed its laundering methods beyond traditional mule accounts. Instead, it allegedly used capital-market structures as a space to park and move illegal money.

Investigators also identified a method referred to as “Poipet Circumvention”, in which Thai mule-account holders were taken to stay in Poipet, Cambodia, for several weeks. They were allegedly used to complete facial-recognition checks and conduct financial transactions on behalf of the real account controllers, allowing the network to evade Thai financial institutions’ security measures.

The operation led to the arrest of eight suspects: seven Thai nationals and one Chinese national.

Officers also searched safe houses in luxury condominiums in Bangkok’s Huai Khwang area, along with business premises allegedly used as fronts for the network.

One alleged commander in the network reportedly told investigators that money obtained from fraud was transferred through a stock-trading application without any real investment in securities. That statement brought the issue under closer public and investor scrutiny.

Webull denies involvement and tightens controls

After the case drew public attention, Webull Securities (Thailand) issued a statement denying any involvement in the alleged money-laundering network. The company insisted that its KYC system operates in line with standards set by regulators.

Chonladet said Webull Securities (Thailand) has registered capital of 1 billion baht and is part of Webull Corporation, which is listed on the Nasdaq in the United States. He said the company is required to comply strictly with international regulatory standards.

The company said it moved quickly to close internal gaps and strengthen security measures within one week of detecting the issue.

Key measures include:

• cancelling 100% real-time withdrawal and adding more time for transaction checks;
• using an AI Scoring Model to analyse customer behaviour and detect unusual transactions;
• adding Enhanced Due Diligence (EDD) for higher-risk accounts;
• using international databases to screen high-risk individuals and suspicious accounts;
• reviewing past activity and identifying around 40-50 mule accounts from a customer base of more than 200,000, or less than 0.03% of all customers.

Webull said the suspicious accounts had already been closed and suspended.

SEC prepares wider industry measures

The case has also prompted regulators to review anti-financial-crime standards across the capital-market industry.

Pornanong Budsaratragoon, secretary-general of the Securities and Exchange Commission (SEC), previously said the regulator was preparing new measures to strengthen cybercrime and anti-money-laundering safeguards, especially in investor identity verification.

Measures under consideration include:

• requiring deposits and withdrawals to go through verified bank accounts;
• upgrading real-time KYC systems;
• increasing penalties against operators that fail to control risks and allow their platforms to become channels for illegal funds.

Webull’s appearance before the House committee on June 11 is expected to be closely watched as a test of Thailand’s capital-market supervision, particularly as regulators try to balance financial innovation with stronger protection against increasingly sophisticated online crime networks.

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