Thai Criminal Law Cracks Down on Financial Fraud Amid Surge in Schemes during COVID-19 Pandemic

Thailand has seen a significant increase in financial fraud cases, especially in the context of glove scams and Personal Protective Equipment (PPE) sales during the COVID-19 pandemic. This Section explores Thai criminal law and its stance on fraudulent activities.

Fraud and the Thai Criminal Code

Fraud, a global issue persisting for thousands of years, lingers in Thailand’s business scene (Thai Criminal Code, Section 341). According to this Section, anyone who intentionally misleads another, providing false info or hiding crucial tidbits for personal gain, causing fund transfers or the creation, revocation, or destruction of legal documentation, commits Cheating and Fraud. Penalties include imprisonment (up to three years), a fine (no more than 6000 Baht), or both.

An Example of Fraud - Mr. A and Mr. B

Consider the following scenario: Individuals Mr. A and Mr. B agree to cooperatively invest in a business. However, Mr. A has no genuine intention of repaying Mr. B’s investment or distributing profits. By deceitfully taking Mr. B’s funds while misrepresenting his intentions, Mr. A engages in fraudulent behavior. This incident underscores the significance of transparency and honesty in both personal and professional relationships.

Public Fraud and Wider Impact

Fraudulent activities that target larger audiences can fall under the jurisdiction of Thai Criminal Code, Section 343. For instance, a manufacturing business that deceitfully sells products without the intention of delivering or proper product types, while submitting fraudulent documentation to a government entity overseeing product licenses, falls under the definition of public fraud. This classification emphasizes the broader societal repercussions beyond individual victims.

Statute of Limitations for Criminal Fraud

The Thai Criminal Procedure Code does not specify a uniform statute of limitations for fraud cases. Nevertheless, victims typically have three months from when they first become aware of the deception to initiate legal proceedings ([Thai Criminal Procedure Code, Section 242](http://www.thai law.org/thai_laws/criminal_procedure_code/242.php)). Prompt action is mandatory for achieving the best possible outcome.

Implications and Consequences

Any individual convicted of fraud faces penalties that may include confiscation of property, fines, imprisonment, confinement, and provisional release. Provisional release is generally granted in most cases, but exceptions can be made based on the severity of the fraudulent act and the defendant’s credibility.

Victim Protection and Due Diligence

Tourists are frequent targets of real estate or holiday scams. Caution is essential when dealing with unfamiliar circumstances, and always verify the credibility of the service provider or seller. Businesses and individuals planning transactions in Thailand can also benefit from due diligence services and professional advice (Contact Our Team of Experts). Our team is dedicated to helping you navigate the intricacies of Thai criminal law and shield your interests.