SEC Intensifies Efforts to Combat Scammers and Curb Money Laundering After AMLO Seizes 10 Billion Baht in Assets

• SEC accelerates the review of money trails and shareholder structures following AMLO's seizure of 10 billion Baht in assets linked to a transnational scammer network with ties to the Thai capital market.
• SEC partners with AMLO to exchange information and push for improved regulations such as KYC/CDD and Travel Rule to close money-laundering loopholes.
• The SEC is reviewing shareholder structures in listed companies to identify ultimate beneficiaries, rather than nominee shareholders, in collaboration with international regulators.
• Efforts to block money-laundering channels through digital assets are also underway, with cooperation from the Ministry of Digital Economy and Society (DE) to shut down unapproved foreign platforms and tightly control Thai digital asset businesses, leading to the suspension of over 44,000 "proxy" accounts.
• Joined the 'Connect the Dots' task force of the Ministry of Finance to enhance data sharing between agencies and improve the efficiency of tracking suspicious financial transactions.

The growing problem of scammer gangs affecting both the capital market and digital asset market has prompted the SEC to enhance its response measures. These efforts include setting up a helpdesk for victims, blocking fraudulent investment websites, and close coordination with government agencies. Following AMLO’s seizure of assets worth 10 billion Baht, including shares in seven Thai-listed stocks, the SEC has stepped up efforts to investigate financial trails and shareholder structures. The aim is to close regulatory gaps and strengthen Thailand’s financial oversight system.

Pornornong Boonsatakul, Secretary-General of the SEC, met with AMLO to discuss and coordinate efforts in tracking and seizing assets linked to technology crime. AMLO has provided preliminary data as requested by the SEC. Additionally, both agencies are working to expedite legislative and regulatory reforms to enhance tools for transaction monitoring and financial tracing via intermediary businesses (travel rule) and identifying ultimate beneficiaries—particularly through complex business structures. They are also focusing on clarifying KYC/CDD standards to benefit both the SEC in enforcing corporate governance violations and AMLO in monitoring money laundering activities.

Thawatchai Pitayasophon, Deputy Secretary-General, explained that the SEC is investigating the ownership structure of companies in question, using forms like 246-2 for reporting acquisitions or sales of securities exceeding 5% of voting rights, which must be disclosed. Moreover, shareholders holding 25%, 50%, or 75% of voting rights in a company are required to make a tender offer for the entire company’s securities, or they could face legal consequences.

The SEC emphasized the importance of verifying actual shareholders (ultimate beneficiaries) and cooperating with foreign regulators. It is crucial to ensure transparency in these investigations, particularly when foreign investors are involved, as the SEC collaborates with international SEC bodies.

Jomkwan Kongsakul, Deputy Secretary-General of the SEC, stated that there are two channels through which fraudsters convert Thai Baht into cryptocurrency. The SEC has taken action to block both channels. One involves the use of platforms based abroad, and in this case, the SEC has coordinated with the Ministry of Digital Economy and Society (DE) to block access to unauthorized foreign platforms. If any attempt is made to encourage Thai citizens to use such platforms, the Cybersecurity Act allows the Ministry of Digital Economy and Society to take action to block access. The SEC will also press charges before referring the case to the Ministry of Digital Economy and Society for further action.

On the other hand, for transactions conducted through Thai platforms operating under regulation, the SEC has collaborated with the Ministry of Digital Economy and Society and several other agencies to enhance oversight of the Thai digital asset business sector. This collaboration aims to address and block issues related to proxy accounts and illicit funds. Various standards have been established to effectively block and prevent proxy accounts, with over 44,000 accounts being blocked, and assets worth over 200 million Baht seized.

Businesses are required to classify customers to assess risks and determine the value of transactions accordingly. Additionally, digital asset businesses must report suspicious transactions to the Anti-Money Laundering Office (AMLO). The SEC has also collaborated with the Ministry of Digital Economy and Society (DE) and other agencies to establish guidelines and facilitate the exchange of information between relevant entities, including commercial banks and digital asset operators. The police will forward information on proxy accounts to block and suspend transactions. Furthermore, the Cybersecurity Act under the Ministry of Digital Economy and Society mandates that businesses are responsible for damages in cases where inadequate measures are implemented or duties are neglected, leading to harm for consumers.

Furthermore, "Connect the Dots", a task force set up by the Ministry of Finance, continues to facilitate cross-agency information sharing and enhance investigations into suspicious financial activities. This includes future enforcement of the Travel Rule, which will improve the flow of data for preventing money laundering through cryptocurrencies.

Thawatchai added that the Connect the Dots initiative must continue to gather comprehensive data to build confidence in the regulatory process. He clarified that the SEC does not prioritize protecting suspected wrongdoers over the public but ensures that all investigations are conducted thoroughly with appropriate evidence. However, obtaining data from foreign sources remains a challenge, as these are often not easily accessible.