BANGKOK, Thailand – The Bank of Thailand (BOT) has announced the implementation of stricter measures to tackle the issue of “mule accounts” used in financial fraud. As of August 1, 2024, commercial banks have begun sharing information across banks through the Central Fraud Registry (CFR) system, a centralized database used to track suspicious financial activity.
This enhanced approach elevates the monitoring from the account level to the individual level, allowing for more comprehensive and swift action against those suspected of using or facilitating mule accounts. The new measures include the suspension of electronic transactions for accounts flagged as suspicious until the account holders can thoroughly prove their innocence. Additionally, these individuals will not be permitted to open new accounts until they are cleared of any wrongdoing.
Since the implementation of these measures, more than 15,000 accounts have been suspended based on information reported to the CFR system over the past nine months. The BOT, in collaboration with the Thai Bankers’ Association, emphasizes that these measures are crucial for preventing the misuse of banking services in criminal activities and for ensuring the safety and integrity of Thailand’s financial system.
For accounts that have been reported or publicly announced by the Anti-Money Laundering Office (AMLO), account holders who find their accounts suspended must promptly coordinate with the Anti-Online Scam Operation Center (AOC) via hotline 1441. They will need to contact the designated police officers to proceed with investigations into the account’s involvement in any criminal activities.
In cases where a bank identifies suspicious behavior in an account but no official report has been filed against the account holder, the bank will implement minimum measures. This includes the immediate suspension of electronic transactions associated with the account. The account holder is then required to rigorously prove their innocence to mitigate the risk of the account being misused by fraudsters.
These procedures are part of broader efforts to prevent and control the misuse of bank accounts in financial crimes. They aim to ensure that account holders are accountable and that the financial system remains secure.
Ronadol Numnonda, Deputy Governor of Financial Institution Stability at the Bank of Thailand (BOT), expressed his gratitude towards the Thai Bankers’ Association and its members for their swift action in establishing robust guidelines to manage bank accounts potentially linked to financial crimes. These guidelines, tailored to different risk levels, have been critical in the development of the Central Fraud Registry (CFR), which now allows for the cross-bank exchange of suspicious account information. This advancement marks a significant improvement from the previous system, enabling a more comprehensive and rapid crackdown on mule accounts.
Ronadol emphasized that the BOT will continuously monitor and evaluate the effectiveness of these measures to ensure the efficient management of mule accounts. This effort is crucial in combating online fraud and restoring public confidence in digital financial services.
Payong Srivanich, Chairman of the Thai Bankers’ Association, highlighted that the association, along with its members, has consistently intensified efforts to tackle mule accounts. They have collaboratively developed industry standards that are already being implemented in line with the BOT’s directives. These standards aim to prevent both the creation of new mule accounts and the misuse of existing ones. Information from the Anti-Money Laundering Office (AMLO) and CFR system reports, as well as police reports, is being used by banks to take stringent actions, such as the immediate suspension of all accounts under suspicion and the denial of new account openings.
Currently, over 15,000 accounts have been flagged and suspended under these measures, which have been in place since Q4 2023. The BOT and the Thai Bankers’ Association urge the public to be aware of the severe legal consequences of allowing their accounts to be used as mule accounts. Such actions could lead to criminal charges and significant disruptions in their access to financial services due to account suspensions and restrictions on opening new accounts.
The BOT and banks are urging the public to be aware of the severe consequences of allowing their accounts to be used as mule accounts. Individuals found guilty could face criminal charges and will be subject to strict banking restrictions, including account suspension and denial of new account openings, significantly impacting their ability to access financial services. (TNA)
