Money Laundering Syndicates Thrive in Thailand’s Transnational Criminal Network

Thailand’s advanced communications and technologies have made it a breeding ground for the expansion and networking of international money laundering syndicates. Criminal activities have gone transnational, with organized gangs operating not only within the country but also at an international level.

Methods of Money Laundering in Thailand

Nominee Accounts

One common method used to launder money is hiring nominees to open bank accounts. This practice has been increasing in Thailand, despite the legal penalties imposed on those hired for criminal purposes.

Indicators of money laundering through nominee accounts include:

• Transactions inconsistent with the account holder’s age, profession, location, or financial status
• Cash deposits made from multiple locations by individuals who have no apparent association with the account holder
• Frequent large cash deposits followed by withdrawals, both domestically and overseas
• Possession of numerous bank accounts
• Groups of individuals opening accounts at the same time using the same address or telephone number

Trade-Based Money Laundering

Another popular method is trade-based money laundering, where illicit funds are blended with genuine business transactions, making them difficult to trace. The scheme often involves setting up front companies, which may have no actual business activities or even exist only on paper.

Thailand’s call-center scam gangs have been taking advantage of this vulnerability. Transnational gangs set up fake call centers in major tourist provinces, hiring locals to open bank accounts and hand them the ATM cards for easy withdrawal. Victims are often tricked into transferring money, believing they owe large sums to credit cards or are suspected of money laundering.

Indicators of trade-based money laundering include:

• Receipt of cash or money orders from third parties with no apparent connection to the business
• Large volume or value of incoming wire transfers into business accounts
• Bank accounts showing a large number of transactions but minimal or no business activity
• Frequent transactions just below the reporting requirement
• Suspicious payment methods or lack of concern regarding risks or commission fees
• Large deposits being split among several bank accounts

Combating Money Laundering in Thailand

Despite the challenges, law enforcement agencies in Thailand are working tirelessly to combat money laundering. They are increasing their efforts to detect and investigate suspicious transactions, focusing on the misuse of digital payment methods and the role of front companies in money laundering operations.

However, staying informed and reporting any suspicious activities to the authorities is crucial for financial institutions, law enforcement agencies, and the public in preventing money laundering in Thailand.