Webull Thailand denies money-laundering links, steps up anti-scam safeguards

Cyber scammers’ tactics of impersonating investment platforms and using digital assets as channels for money laundering have rattled Thailand’s investment market, causing losses for investors and undermining confidence.

The issue came into sharper focus after the Central Investigation Bureau (CIB) late last year dismantled a money-laundering network linked to a call centre gang, with online investment platform Webull being mentioned in connection with the case.

On Thursday (March 19), Chonladet Khemarattana, CEO of Webull Securities (Thailand), issued a statement insisting that the company had no involvement in the network and had already clarified the facts to the Securities and Exchange Commission (SEC).

He said the company had also cooperated with police in expanding the money-laundering investigation, enabling officers to identify mule accounts. He added that the matter did not involve Webull alone, noting that other financial institutions had also been implicated in the case.

Meanwhile, Webull said it had strengthened its operating systems to prevent fraudsters from exploiting its services following its cooperation with police, as it seeks to expand investment access while remaining committed to protecting investors and Thailand’s capital market.

“We are willing to make withdrawals slightly less convenient for all customers, rather than allowing them to be processed instantly with the snap of a finger, so that the system has time to carry out screening. Since we introduced these measures, we have not found any additional mule accounts being opened,” Chonladet said.

The company stressed that its operations are fully compliant with the law and regulatory requirements. It holds a securities business licence from the Finance Ministry and operates under the supervision of the SEC.

After being linked to the money-laundering issue, the company reiterated three key points:

• The company has no policy of accepting cash deposits from clients and checks that the name of the transferor matches the client’s account before each transaction.
   
• Its Know Your Customer (KYC) process fully complies with the required standards.
   
• Paying interest on cash held in securities trading accounts pending investment is standard practice in the securities business and is in line with SEC regulations. The company said client funds are held in accounts with global banking partners that are clearly designated as client accounts.

“In Webull’s day-to-day operations, we conduct our business properly and in compliance with all regulatory requirements. We also continue to strengthen our capabilities in preventing mule accounts, assessing suitability and setting limits. We place just as much importance on these issues as we do on product development,” Chonladet said.

He added that the company also shares information through the Association of Thai Securities Companies (ASCO), and welcomes cooperation among regulators and law enforcement agencies. “We are willing, and we want to be part of strengthening the system together,” he said.

Actions to tackle transnational money-laundering networks

Webull said it had coordinated with police over the incident and introduced urgent remedial measures in late 2025. It added that it has since raised its security standards beyond the regulatory minimum to protect investors and Thailand’s capital market, and that no such issue or behaviour has been detected again.

The company has also worked with its global banking partners to develop additional proactive screening systems to verify whether the name or Thai national ID number of a securities trading account holder matches the owner of the source deposit account for both incoming and outgoing transactions.

If a mismatch is found, the system immediately rejects the transaction and does not allow it to be completed.

This is supplemented by checks against blacklist databases and the World-Check system, as well as AI-based monitoring of suspicious behaviour. Where unusual activity is detected, the system temporarily suspends the transaction for staff review.

At the same time, the company said its KYC procedures are stringent and fully compliant with regulatory requirements. The system also has a rejection rate for clients deemed high risk, particularly those whose financial profile does not match their stated source of income.

Highlights of Webull’s investment technology and corporate governance standards are as follows:

1. Funds transferred into Webull must come only from a bank account in the client’s own name; cash is not accepted

Webull said it has never allowed clients to deposit funds directly with the company in cash since the start of its operations. Clients can fund their accounts in two ways.

The first method is via a Dynamic QR Code, developed jointly with a global banking partner to verify whether the owner of the securities trading account at Webull matches the owner of the source deposit account. 

Clients can use a mobile banking app provided by a commercial bank to scan the QR code and deposit funds into their brokerage account, with a limit of 2 million baht per transaction.

The second method is to link a bank account through the FiNNET system of the Stock Exchange of Thailand. Under this process, the company sends a request to the client’s bank, and the client must confirm the link personally through their mobile banking app.

2. Every withdrawal from Webull is screened for suspicious activity

At present, the company said every client withdrawal is screened to determine whether it may be suspicious. Its system assesses risk based on customer behaviour through an Internal Scoring Model developed to detect potentially suspicious conduct.

This includes factors such as the frequency of deposits and withdrawals, the amounts involved, and whether the pattern of deposits or withdrawals is consistent with the client’s actual investment behaviour.

If an unusual transaction is detected and may indicate a suspicious account, the company said it will coordinate with police to verify whether the account is linked to a mule account network.

If there are reasonable grounds to suspect money laundering, authorised staff will immediately suspend the relevant withdrawal and report the matter to the compliance unit for consideration and submission to the relevant committee for approval to file a suspicious transaction report with the Anti-Money Laundering Office (AMLO) in line with the prescribed rules.

Apart from screening withdrawals for irregularities, all clients must complete an account-linking process before making their first withdrawal. Clients are required to provide evidence such as a copy of the front page of their bank passbook, or a virtual passbook in the case of a paperless bank account.

The name on the bank deposit account must match the name on the securities trading account held with the company. The company then uses an automated verification service through its banking partner to confirm the accuracy of the account holder’s name before approving the bank account link for withdrawals.

3. Webull sets appropriate trading limits and has robust EDD and STR procedures

The company sets an initial securities trading limit of 500,000 baht for clients. Any client wishing to increase that limit must provide financial evidence in accordance with ASCO criteria.

The company also checks whether the funds transferred in are consistent with the client’s financial status as declared in support of the requested trading limit.

If irregularities are found, the company will carry out Enhanced Due Diligence (EDD) by requesting further information from the client, such as confirmation of occupation, source of income, bank statements and supporting documents.

If the client continues to provide information that is questionable or inconsistent with the stated source of income, the company will refer the matter to the relevant committee for approval to submit a Suspicious Transaction Report (STR) to AMLO in accordance with the applicable rules.

Webull said it complies with SEC rules requiring the segregation of client funds from the company’s own funds. It earns interest from a global bank at a rate of 3.50% per year and pays clients interest of up to 3.50% per year, with no cap on the amount.

In addition, paying interest on cash that has not yet been invested is normal practice in the securities business. The company stressed that this does not amount to conducting banking business, and that clients are fully aware that a securities trading account is not a bank deposit account.

Webull would like to reaffirm that its business operations, including the payment of interest on cash balances not yet invested and its role as a foreign broker, fully comply with SEC regulations and are legally valid. At the same time, the company adheres to international regulatory standards as an affiliate of a company listed on the US Nasdaq stock exchange.

The company will continue to build on its cooperation with relevant agencies and officials to further raise the standards of securities business operations in Thailand, while strengthening the confidence of Thai investors over the long term.