BANGKOK, Thailand – Deputy Prime Minister and Minister of Digital Economy and Society, Prasert Chantraruangthong, announced progress on a new law aimed at protecting victims of online crimes, September 16. The law, developed in collaboration with the Bank of Thailand (BoT), the Anti-Money Laundering Office (AMLO), and other agencies, will require banks to refund 100% of the damages to victims of online fraud.
Banks Held 100% Responsible for Compensation
The Bank of Thailand is currently drafting guidelines that will specify the responsibilities of financial institutions. If banks fail to comply with regulations, they will be required to fully compensate affected customers. The new rules, overseen by regulators such as the BoT and the National Broadcasting and Telecommunications Commission (NBTC), are designed to hold banks accountable for ensuring customer protection.
Prasert explained that this law will provide clear authority to financial institutions and allow victims to pursue legal action if banks fail to meet their obligations, such as in cases where banking applications are hacked. There have already been court rulings where victims of online crimes won cases against banks, setting a precedent for future legal actions.
Negligence Level Determines Bank Liability
The Deputy Prime Minister emphasized that the degree of bank negligence will influence the level of responsibility. While criminals will remain 100% liable for fraud, banks may also share liability if proven negligent. This measure is not intended to shield banks but to highlight their responsibility to protect customers from cybercrime.
Fast Refunds and Stricter Penalties on Data Selling
Prasert also discussed the drafting of a special Royal Decree aimed at speeding up the refund process for online crime victims and increasing penalties for the illegal sale of personal data. The decree, currently under review, seeks to clarify the legal process, as some funds from fraudulent activities remain in the banking system, requiring a clear mechanism for refunding victims.
“The refund process is complex since the money is still in the banking system. Therefore, a clear legal framework is being developed to ensure that banks can return the funds to victims efficiently,” Prasert concluded.
