Thai central bank targets money flows behind scam networks
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[BANGKOK] Thailand’s central bank is making its broadest push yet to trace and block illicit money flows, targeting the proceeds of scams and other illegal activities that have surged across South-east Asia.
The Bank of Thailand on Thursday joined 11 financial-sector groups spanning banks, non-bank lenders, payment providers and money changers, seeking to prevent the financial system from being used to move criminal proceeds.
Under the framework, all parties agreed to strengthen checks on customers and merchants, increase scrutiny of high-risk transactions and make greater use of data and technology to detect suspicious activities. They will also share information on criminal patterns and warning signs, while coordinating more closely with regulators and law enforcement.
“We cannot arrest them, but we can strengthen our systems, create bottlenecks and make it more difficult for them to move illicit funds,” governor Vitai Ratanakorn said. “Illicit transactions won’t disappear completely, but we can reduce them.”
The initiative expands Thailand’s crackdown on so-called “gray money,” including proceeds from online scams, gambling and corruption that can move through bank accounts, cash, gold and digital assets.
Tackling illicit flows has become a priority for Vitai, who has broadened the central bank’s focus beyond monetary policy to structural problems that threaten financial stability and economic growth.
Early this year, Bank of Thailand tightened oversight of gold transactions to make large flows easier to trace. The measures are also designed to curb speculative gold trading that officials say can amplify swings in the baht.
“Today is not just another ceremony. It’s a commitment,” Vitai said. “We have work to do, and we will work together from now on.” BLOOMBERG
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