Bank of Thailand Teams With 11 Finance Groups to Stop Illegal Transactions

The Bank of Thailand is joining forces with the financial sector to strengthen monitoring and detection of suspicious transactions, using data and technology to link high-risk individuals through the Central Fraud Registry and intercept illegal activity. Bank of Thailand Governor Withaya Rattanakorn revealed that the central bank and regulated financial businesses are driving forward the Framework for Safeguarding the Financial Sector from Illicit Activities to proactively prevent the financial system from being used as a tool, conduit, or channel supporting illegal acts, while enhancing the security, safety, and reliability of the financial system and protecting the public from harm.

The cooperation framework requires all organizations to upgrade policies, direction, and governance in preventing misuse of the financial system, making it part of corporate business oversight, and implementing practical measures with minimum standards appropriate to each business type while continuously adapting to evolving risks. The financial sector will deploy data, technology, and expertise for monitoring, detecting, and responding to risks, emphasizing information and knowledge sharing, fraud patterns, warning signals, and best practices between agencies to combat complex fraud that may exploit gaps between organizations, while implementing measures in a balanced way that does not harm legitimate users, access to financial services, fair competition, or innovation.

The Bank of Thailand will upgrade system-wide oversight standards, customer and counterparty due diligence, and use data, technology, and expertise to improve monitoring and detection of suspicious transactions. It will also coordinate information with relevant agencies to close loopholes and develop measures to match new risk types, alongside promoting financial literacy to the public.

The cooperation framework includes 11 participating financial industry associations under Bank of Thailand supervision: the Thai Bankers Association, the Association of International Banks in Thailand, the Government Finance Institutions Association, the Thai Electronic Fund Transfer Service Provider Association, the Thai Foreign Exchange and Precious Metals Dealers Association, and six other associations and clubs representing non-bank lenders.

Key measures include upgrading Know Your Customer and customer due diligence procedures, screening high-risk cash transactions, deploying advanced technology to proactively detect irregular transactions, developing a high-risk individual database linked to the Central Fraud Registry, creating guidelines for anti-money laundering and counter-terrorist financing measures, and using community networks to build financial resilience in vulnerable groups.

The Bank of Thailand and the financial sector will continue implementing measures to close loopholes that the financial system might be exploited through, enhance protection against financial threats, safeguard the public, and build a financial ecosystem that people can use with confidence long-term.