Thailand To Tighten Forex Laws, Stiffen Penalties For Scammers
Thailand is tightening forex regulations and increasing penalties for scammers, with lawmakers identifying loopholes in decades-old laws that impose minimal fines and prison time. The government aims to close legal gaps before a 2027 intern
Juti Krairiksh, a Phisanulok MP from the Phum Jai Thai party and chair of parliament's financial, banking, and capital markets committee, disclosed progress on forex fraud cases on July 5. The committee has opened hearings for complainants to testify directly, working with the Bank of Thailand (BOT) and the Anti-Money Laundering Office (AMLO), after victims previously had no opportunity to present their cases. A significant legal loophole has been identified that allows fraudsters to deceive citizens into investing, despite the BOT confirming it has never licensed any individual to conduct forex trading in Thailand except for foreign currency exchange.
Juti highlighted a critical weakness: Thailand's current forex regulations date back to 1942, imposing only a 2,500-baht fine and maximum two-year prison sentence, leaving offenders unafraid to pay fines and expect suspended sentences. Similarly, anti-money laundering laws carry just one year imprisonment—lower than the Personal Data Protection Act (PDPA), which mandates up to five years, despite money laundering's severe economic impact.
"This is Thailand's weakness: good laws but poor enforcement. Criminals evade investigation by authorities. We must ensure wrongdoers actually go to prison," Juti said. "This government is committed to eliminating scammers and money laundering networks, signaling to international investors that Thailand will no longer be a haven for grey-market operations. Our capital market must be transparent and safe."
To expedite reform, the committee will bypass normal procedures, with MPs directly proposing law amendments to parliament once the BOT provides detailed analysis of the 1942 law's weaknesses. Additionally, the special anti-money laundering bill committee has requested implementing agencies reduce regulatory development timelines from 240 days to 120 days. Thailand faces a money laundering assessment on June 30, 2570, evaluating both law enforcement and new legislation to close loopholes before joining the Organization for Economic Co-operation and Development (OECD).
