BOT escalates measures to combat "illicit funds" and suspicious transactions
The Bank of Thailand (ฺBOT) has intensified measures to combat illicit funds, focusing on closely monitoring suspicious money transfer routes and tightening oversight of all regulated financial service providers.
Vitai Ratanakorn, Governor of the Bank of Thailand (BOT), announced on Tuesday (November 4) the escalation of measures to combat illicit financial flows, focusing on strengthening the monitoring of transactions suspected of being linked to online gambling or fraudulent activities.
The new measures will also tighten oversight of all financial service providers regulated by the BOT, including commercial banks, money exchange shops, money transfer services, and e-wallet providers, to ensure more robust tracking of irregular financial movements and to keep pace with evolving financial crimes.
The BOT is also collaborating with the Anti-Money Laundering Office (AMLO) and other relevant agencies to close loopholes in money laundering and enhance the long-term security of Thailand’s financial system.
Vitai stated that the announcement aims to intensify the monitoring and review of suspicious transactions to prevent and address the issue of illicit capital flows, including blocking the use of the financial system in illegal activities. The enhanced measures include:
1. Strengthening Customer Due Diligence (CDD): Commercial banks will be required to pay closer attention to suspicious transactions involving deposits or transfers from accounts potentially linked to online gambling or scam operations. Banks will be instructed to report any irregularities to the BOT.
The BOT will also review and update relevant regulations and guidelines to provide clearer instructions and to support the work of AMLO going forward.
2. Tightening Oversight of Financial Service Providers: The BOT will increase supervision of regulated financial services, including authorised money transfer agents, money changers, and e-wallet providers. The BOT will also monitor gold transactions to detect any links to illegal activities. This will help to ensure that financial transaction routes are thoroughly checked for potential fraudulent activities and remain agile in the face of evolving financial crime tactics.
Additionally, the BOT will expedite the exchange of information and foster closer collaboration between agencies and working groups to prevent and limit undesirable transactions, ensuring a broader and more rapid response.
