Thai central bank targets money flows behind scam networks

Thailand's central bank, the Bank of Thailand, is intensifying its efforts to identify and halt the movement of illicit funds, particularly those generated by scams and other criminal activities that have proliferated across Southeast Asia. On September 10, the bank joined forces with a coalition of 11 financial institutions, including banks, non-bank lenders, payment processors, and money changers, to prevent the financial system from being exploited for criminal purposes.

The collaborative framework aims to bolster customer and merchant verification, intensify scrutiny of high-risk transactions, and leverage data and technology to identify suspicious activities. The institutions agree to exchange information on criminal trends and red flags, while enhancing cooperation with regulators and law enforcement agencies.

Bank of Thailand Governor Vitai Ratanakorn emphasized the bank's inability to arrest offenders but highlighted its ability to "strengthen our systems, create bottlenecks, and make it more difficult for them to move illicit funds." He acknowledged that illicit transactions will not vanish entirely but can be diminished. The initiative is an extension of Thailand's ongoing crackdown on "gray money," encompassing earnings from online scams, gambling, and corruption that can traverse bank accounts, cash, gold, and digital assets.

The central bank has been increasingly focusing on structural issues that jeopardize financial stability and economic growth, rather than just monetary policy. In early 2026, the bank tightened controls over gold transactions to facilitate better tracing of sizable flows. These measures also seek to curb speculative gold trading, which authorities contend can exacerbate fluctuations in the Thai baht.

Vitai Ratanakorn underscored that this is not merely a symbolic endeavor but a solemn commitment to collaborate and take action moving forward.