Financial Crimes Investigation Process in Thailand

Introduction

Thailand has seen an alarming increase in financial crimes, particularly involving fraud cases, since the COVID-19 pandemic. The country’s laws strictly penalize such offenses, with severe consequences for perpetrators.

The Offense of Fraud

Under Section 341 of the Thai Criminal Code, cheating and fraud are defined as:

• “Any individual who dishonestly misleads another by asserting false statements or concealing facts that ought to be disclosed, and, through such deceit, acquires property from the defrauded person or a third party, or induces the defrauded person or a third party to create, revoke, or destroy a legal document”

The punishment for this offense shall not exceed three years of imprisonment or a fine of no more than six thousand Baht, or both.

Illustrating Fraud

In practice, even when arising from a commercial agreement, actions may constitute fraud if the perpetrator intentionally deceives another party from the outset. For example:

• If Mr. A agrees to jointly invest in a business with Mr. B by having Mr. B transfer funds to his private account, with no actual intention of returning the investment and profits to Mr. B, Mr. A’s actions are considered fraudulent.

Public Fraud

If fraudulent acts outlined under Section 341 are perpetrated against the public, they may fall under the purview of Section 343 of the Thai Criminal Code:

• “If the offense under Section 341 is committed by the assertion of a falsehood to the public or by the concealment of the facts which should be revealed to the public, the offender shall be punished with imprisonment not exceeding five years or fined not exceeding ten thousand Baht, or both”

Consequently, fraud committed against the public is classified as a public offense, highlighting its broader impact on society beyond individual victims.

Statute of Limitations for Criminal Fraud

The statute of limitations for fraud cases in Thailand varies depending on the specifics of each case, including whether the fraud is considered a public or private offense and whether it is categorized as criminal or civil. The most crucial factor regarding the statute of limitations is the nature of the case.

Fraud: Civil Proceedings

The Securities and Exchange Act in Thailand provides the legal framework for pursuing civil actions in cases of fraud. Remedies include:

• Up to five years trade in securities suspension
• Up to 10 years revocation of registration
• Fines up to one million Baht