THAILAND FACES EMERGING RISKS IN FINANCIAL CRIME PREVENTION: REPORT
Bangkok Report Highlights Growing Threats to Financial Crime Prevention in Thailand
A new report by Financial Crime News has highlighted the growing threats to financial crime prevention in Thailand, citing a range of high-risk crimes and emerging risks that pose significant challenges to the country’s efforts to combat illicit activities.
Key Findings:
- Corruption remains a major obstacle to effective anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts in Thailand.
- Human trafficking, drug trafficking, and corruption are among the most significant high-risk predicate offences for money laundering in Thailand.
- Foreign criminal groups have been active in Thailand for over a century, engaging in human and drug trafficking and fraud via call centers.
- The country’s Golden Triangle is a notorious drug production hub, with Chinese, Korean, and Taiwanese criminals involved in online gambling and scams targeting Chinese nationals.
High-Risk Crimes in Thailand:
- Human trafficking
- Drug trafficking
- Corruption
- Loan sharking
- Migrant smuggling
- Child pornography
- Illegal surrogacy
Emerging Risks:
- Cybercrime: ransomware, metaverse-related attacks, and critical infrastructure attacks pose major risks to the financial, utility, and healthcare sectors.
- Advanced technologies enable scams like romance scams, Ponzi schemes, and voice phishing.
Financial Crimes in Thailand
Thailand faces escalating financial crimes, including fraud, tax evasion, and embezzlement. The country’s financial sector is particularly vulnerable due to a lack of appropriate monitoring and reporting.
Notable Financial Crimes:
- Romance scams
- Ponzi schemes
- Voice phishing
- Call center scams targeting the elderly
Terrorism Finance in Thailand
The risk of terrorism has decreased significantly since the peak of ethno-nationalist insurgent violence, but terrorism finance remains a medium-risk area. Significant risks exist in fundraising, moving funds, and TF channels involving cash couriers and unregulated digital asset platforms.
Sector Risks:
- Banks
- Specialized depository financial institutions
- Unregulated digital asset providers
- Business nominees
- Cross-border cash couriers
- Trade-based money laundering
Country Risk Assessment
For an overview of financial crime risks posed by third countries to Thailand, refer to the chart from the NRA 2022.
The “Thailand Country Financial Crime Dashboard 2024” provides a comprehensive overview of the financial crime risks and responses in Thailand, including regulatory frameworks, recent enforcement actions, and risk assessments.