Bank of Thailand and lenders tighten customer checks against illicit money
Bank of Thailand and 11 financial-sector associations launch a joint framework tightening KYC and fraud screening across banks, e-payment providers and non-bank lenders. The story Bank of Thailand and lenders tighten customer checks against illicit money as seen on Thaiger News .
The Bank of Thailand and participating financial institutions in Thailand have implemented stricter customer verification measures to combat illicit financial activities. Announced on September 10, the new framework aims to prevent criminals from exploiting the financial system.
Governor Vitai Ratanakorn highlighted the importance of this initiative, which requires financial sector associations to enhance their know your customer, customer due diligence, and enhanced due diligence procedures. High-risk cash transactions and those flagged by technology-based systems will undergo increased scrutiny.
The participating entities include major banking organizations such as the Thai Bankers' Association, the Association of International Banks, and the Government Financial Institutions Association. Additionally, the Thai E-Payment Trade Association, Thai Association of Foreign Exchange and Financial Services, and six non-bank lenders' associations have joined the effort.
Together, these organizations represent a broad range of financial institutions, from traditional banks to non-bank lenders, payment providers, and money changers. The central bank also introduced a database of high-risk individuals linked to the Central Fraud Registry, complemented by industry-wide operational guidelines on anti-money laundering and counter-terrorism financing.
Moreover, the central bank introduced financial literacy initiatives through community networks to support public awareness. The registry, detailed in a separate release in 2024, enables banks to share financial transaction information across the sector, facilitating investigations and freezing suspected accounts.
Participating organizations must also evaluate the impact of these preventive measures on legitimate customers. This includes considering the effect on access to financial services, fair competition, and innovation, in addition to the primary goal of stopping illicit activities.
Related news includes reports of a Bangkok monk arrested over a scam involving mule accounts, the apprehension of two Russians with over 5.4 million baht from mule accounts, and a 60% decline in scam and nominee offenses following an enforcement push.
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