Money Laundering in Thailand: Sophisticated Techniques Used by Criminals

Introduction

The advanced communication technologies and global networks have made it easier for money laundering syndicates to operate across borders, posing a significant threat to the financial system of Thailand. Sophisticated criminals are constantly developing new techniques to launder their ill-gotten gains, making it harder for authorities to detect their activities.

Common Techniques Used by Money Launderers

Hiring Nominees to Open Bank Accounts

One of the most common methods used by money launderers is hiring nominees to open bank accounts in Thailand. Despite the risk of legal penalties, this technique continues to be widely used, particularly among drug trafficking syndicates and financial scam gangs.

Indicators of Using Nominees

• Transactions inconsistent with the account holder’s age, profession, location, or financial status
• Cash deposits made from multiple locations or by individuals with no apparent connection to 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

The growth of world trade has made trade-based money laundering an important channel for criminal activity. This technique involves blending illicit funds into genuine business transactions, making it difficult to single out and trace the real source.

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 a business account with no apparent legitimate purpose
• Bank accounts used to receive or send large amounts of money but showing virtually no normal business activities
• Frequent structuring: cash deposits just below transaction reporting requirements
• Payment methods that lack concern for risks or commission fees

Combination of Techniques

The use of nominees and exploitation of trade-based schemes continue to be key in money laundering, and are also believed to be used in terrorist financing operations. The techniques vary in complexity and are increasingly being used in combination with other money laundering techniques to further obscure the money trail.

Those major techniques also include the misuse of new payment methods such as internet payments, mobile payments, and prepaid cards which are currently subject to enhanced scrutiny.