Financial Crime World

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Thailand Ramping Up Efforts to Prevent Financial Crime

Bangkok, March 9 - The Bank of Thailand (BOT) is taking a hard stance against financial crime in the country, introducing new measures to prevent, detect, and respond to fraudulent activities that are increasingly evolving and sophisticated.

A Growing Threat

Speaking at a recent press conference, BOT Governor Sethaput Suthiwartnarueput emphasized the gravity of the situation, highlighting the emergence of new forms of financial crimes such as short message service (SMS) scams, call-center gangs, and loan and money-siphoning applications. These activities not only result in significant financial losses for individuals but also erode trust in digital banking, potentially having a wider impact on the country’s financial services sector.

Strengthening Measures Against Fraudsters

To combat this threat, the BOT has been working closely with various organizations both within and outside the financial sector to strengthen its measures against fraudsters and support victims of financial crime. The central bank has urged all financial institutions to accelerate their efforts to safeguard customers and coordinate with regulatory bodies such as the National Broadcasting and Telecommunication Commission, the Ministry of Digital Economy and Society, and the Thailand Banking Sector Computer Emergency Response Team (TB-CERT) to block suspicious SMS.

Enhanced Measures for Financial Institutions

The BOT has introduced additional measures to enhance its efforts, including:

Minimum Standards for All Financial Institutions

  • Banning links in SMS or email requests
  • Prohibiting requests for personal information via social media
  • Limiting mobile banking users to one username and one device per user
  • Requiring prior notification of each mobile banking transaction
  • Implementing biometric authentication, such as facial scanning, for high-risk transactions

Detective and Monitoring Measures

The BOT has set criteria for detecting and monitoring suspicious transactions, requiring financial institutions to:

  • Report suspicious transactions to the Anti-Money Laundering Office
  • Have a near-real-time system in place to detect and temporarily freeze suspicious transactions

Responsive Measures

Financial institutions are required to establish a hotline call center available 24/7 for victims of financial crime to report losses and receive support.

Timeline for Implementation

The BOT has urged all financial institutions to implement these measures as soon as possible, with most expected to be completed by March 2023. The central bank will regularly review the effectiveness of its measures and update them as needed to ensure they remain relevant and effective in combating financial crimes.

Call to Action

Experts note that a comprehensive framework to combat financial frauds requires the enforcement of the Royal Decree on Cybercrime Prevention and Suppression. This decree would empower data sharing between financial institutions and authorities, enable immediate blocking of suspicious transactions, and impose penalties on those involved in mule accounts.

For more information, please contact the Technology Risk Supervision Department at +66 (0) 2283 6574 or +66 (0) 2356 7695, or email ITSUPERVISION@BOT.OR.TH.