A data bureau is set up by the Bank of Thailand (BOT), the Thai Bankers Association (TBA), and the Office of the Securities and Exchange Commission (SEC) to screen financial transactions suspected of being linked to “grey” money, scams, or illegal online gambling activities.
According to Finance Minister Ekniti Nitithanprapas, the initial screening process is expected to be completed in two weeks. Data gleaned will then be used in the improvement of existing laws, to align with the G7’s Financial Action Task Force (FATF) standards and to deal with the online scam and gambling activities more effectively.
The suspicious transactions being identified by a working committee, comprised of the BOT, the TBA and the SEC, concern gold trading, which is inadequately regulated.
The problem, according to the committee, stems from the gold purity standard in Thailand, which has been set at 96.5%. This has meant that Thai gold exporters ship gold abroad to increase its purity to 99.99% and then re-imported it for re-export, said the committee, adding that this may offer a loophole for money laundering by scam networks.
It was pointed out that a significant amount of gold has been exported from Thailand in the past several months, raising suspicions that the gold exports could be linked to scam syndicates.
Central Bank Governor Vitai Ratanakorn is reported to have told the committee meeting that the bank intends to tighten controls on suspicious financial transactions by requiring financial institutions and money exchange service providers to report suspicious transactions to the central bank, on top of the requirement to report to the Anti-Money Laundering Office (AMLO).
Members of the Thai public are defrauded out of several billions of baht by local and transnational scammers and online gambling operators each year and the problem is getting worse.
