Financial Crime World

Thailand Tackles Money Laundering: A Step-by-Step Approach

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Introduction

Thailand has emerged as a hub for financial activities, attracting global investors due to its favorable trade agreements with over 10 countries. However, this increased flow of funds has also made the country a hotspot for money laundering and terrorist financing.

Financial Crimes on the Rise in Thailand

A recent PwC survey revealed that 25% of Thai companies have experienced financial crimes, fraud, or corruption in the past two years. Cybercriminals are exploiting remote work opportunities during the COVID-19 pandemic to conduct sophisticated attacks using cryptocurrencies and the dark web.

Key Statistics:

  • 25% of Thai companies have experienced financial crimes, fraud, or corruption in the past two years.
  • Cybercriminals are exploiting remote work opportunities during the COVID-19 pandemic to conduct sophisticated attacks using cryptocurrencies and the dark web.

Strengthening AML Laws in Thailand

The Thai government is taking swift action to combat financial crimes by introducing new laws or amending existing ones. Two key terms have been introduced to prevent financial crimes within the economic system: Customer Due Diligence (CDD) and Know Your Customer (KYC).

What are CDD and KYC?

  • Customer Due Diligence (CDD): A process used by banks and other financial institutions to gather and verify users’ information, ensuring that they are genuine and creating a record.
  • Know Your Customer (KYC): The most effective way to ensure that users are who they say they are.

Thailand’s AML Laws: An Overview

The Thai government has introduced several laws to combat money laundering and terrorist financing:

Key Laws:

  • Anti-Money Laundering Act B.E 2542: This law requires banks and other financial institutions to report any transaction over $1600 to the relevant authorities. The law also states that trying to use illegal money is a crime, which could lead to 15 years in prison.
  • Counter-Terrorist Financing Act Amendments: Although Thailand already had a Counter-Terrorist Financing Act, it did not cover how financial groups and money laundering were used for terrorism. Therefore, the government amended the law to include this.

Authme’s eKYC Solutions: A Game-Changer in Identity Verification

In a world where identity theft and fraud are on the rise, Authme’s eKYC solution not only prevents identity theft and fraud but also provides a seamless and user-friendly experience for customers. With over 3 million verifications processed across various industries, including banking, insurance, and cryptocurrency, Authme has earned the trust of leading brands like Binance, Standard Chartered, and LINE Bank.

Key Benefits:

  • Prevents identity theft and fraud
  • Provides a seamless and user-friendly experience for customers
  • Earned the trust of leading brands like Binance, Standard Chartered, and LINE Bank

Conclusion

Battling against money laundering and terrorism financing is crucial to ensure regulations in Thailand. As a thriving economy in its region, Thailand can reap positive benefits by putting resources into AML and CFT solutions.