Financial Crime World

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BANK OF THAILAND TAKES STRENGTHENED MEASURES TO COMBAT FINANCIAL CRIME

Enhanced Measures to Combat Financial Crime

Bangkok, Thailand - The Bank of Thailand (BOT) has announced a series of strengthened measures to combat financial crime in the country, including fraudulent activities such as short message service (SMS), call-center scams, and money-siphoning applications. These measures aim to prevent, detect, and respond to financial fraud, while also promoting digital financial services.

Evolving Threats

According to Governor Sethaput Suthiwartnarueput of the Bank of Thailand, fraudulent activities have become increasingly sophisticated, causing significant financial losses to individuals and affecting public confidence in digital banking. To address this issue, the BOT has collaborated with related organizations, including 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 messages.

Strengthened Measures

The current measures need to be strengthened, particularly in the face of evolving fraudulent forms, increasing mule account activity, and lengthy processes for freezing suspicious accounts. To address these challenges, the BOT has introduced additional measures, which include:

Preventive Measures

  • Financial institutions are required to ban sending links via SMS or email that request personal information such as usernames, passwords, and ID numbers.
  • Mobile banking users will be limited to one username per device, and each transaction must be prior notified to the user.
  • Mobile banking security systems must be constantly upgraded, with biometric authentication required for high-risk transactions.

Detective and Monitoring Measures

  • The BOT will set criteria for detecting and monitoring suspicious transactions, and financial institutions are required to report such transactions to the Anti-Money Laundering Office.
  • Financial institutions must have a near real-time system in place to detect and temporarily freeze suspicious transactions.

Responsive Measures

  • Financial institutions must establish a hotline call center available 24/7 for financial fraud victims to contact, and be responsive when losses occur.

Implementation Timeline

The BOT has urged all financial institutions to implement these measures promptly, with some already underway and the rest targeted for completion by March 2023. The effectiveness of these measures will be evaluated and reviewed regularly to ensure they remain up-to-date and aligned with evolving situations.

Call to Action

The Bank of Thailand’s efforts mark an important step in tackling financial crime, but 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, immediate blocking of suspicious transactions, and imposing penalties against those involved with mule accounts.

Contact Information

Technology Risk Supervision Department Bank of Thailand Tel: +66 (0) 2283 6574 , +66 (0) 2356 7695 Email: ITSUPervision@bot.or.th