Money Laundering Cases in Thailand: A Growing Concern

Thailand’s advanced communications and technologies have made it easier for money laundering syndicates to expand their networks, posing a significant threat to the country’s financial system. Organized crime groups are now operating on an international level, making money laundering a transnational issue.

Sophisticated Techniques Used by Money Launderers

Money launderers have developed various techniques to launder their ill-gotten gains, including combining traditional methods with modern technologies. One such technique is hiring nominees to open bank accounts for criminal purposes, which has become increasingly prevalent in Thailand.

Nominee Accounts

• Misuse of nominee accounts: Drug trafficking syndicates and financial scam gangs hire locals to open bank accounts and withdraw funds via ATMs.
• Call-centre scams: Transnational organized crime groups set up fake call centres in major tourist provinces, luring victims into transferring money.

Indicators of Nominee Accounts

• Transactions inconsistent with the account holder’s age, profession, location, financial status, or activity
• Cash deposits made from multiple locations or by multiple individuals with no apparent association with the account holder
• Frequent large cash deposits followed shortly by withdrawals domestically or overseas via ATMs
• Possession of a large number of bank accounts
• A group of individuals opening accounts around the same time using the same address or telephone number

Trade-Based Money Laundering

Trade-based money laundering has become an important channel for criminal activity. The misuse of trade operations blends illicit funds with genuine business, making them difficult to single out and hard to trace.

Indicators of Trade-Based Money Laundering

• Transactions involving the receipt of cash or other money orders from third parties with no apparent connection to the stated business
• Large value or volume of incoming wire transfers into business accounts with no apparent legitimate purpose
• Bank accounts used to receive or send large amounts of money but show virtually no normal business activities
• Frequent structuring: cash deposits are just below transaction reporting requirements
• Payment methods appear to lack concern for risks or commission fees, or transactions do not make business sense
• Large money deposits being split among several bank accounts

Enhancing Scrutiny and Detection Capabilities

The use of nominees and exploitation of trade-based schemes continue to be key in money laundering and terrorist financing operations. As these techniques become more complex and are used in combination with other methods, it is essential for financial institutions and law enforcement agencies to enhance their scrutiny and detection capabilities.