Following decisive actions by major countries against scam networks in Cambodia, concerns are mounting about scam centers and money laundering operations within Thailand.
Many experts have condemned the Thai government and regulators, accusing them of incompetence or even corruption as the country faces heightened scrutiny over its role in the regional financial ecosystem.
The exposure of illegal call centers and human trafficking in Myanmar and Cambodia has sent shockwaves throughout the region, with ripple effects felt in Thailand and beyond.
While countries such as the United States, the United Kingdom, South Korea, Singapore and China have taken strong steps against such criminal enterprises, Thailand appears to lag behind in combating illegal activities. Millions of victims worldwide have suffered substantial financial losses.
Thailand’s digital push
Former finance minister Pichai Chuhanvijara had laid out a roadmap for Thailand to become a financial hub. The previous coalition government led by the Pheu Thai Party had continued to promote digital asset market development, building on the Prayut administration’s Emergency Decree on Digital Asset Businesses BE 2561 (2018), which established the legal framework for cryptocurrency exchange operations.
In 2024, Thailand’s Digital Department signed a memorandum of understanding (MOU) with Singapore-based Prime Opportunity Fund VCC to formulate digital asset policies, including provisions to bring in IT specialists from abroad.
Journalistic scrutiny
Investigative journalists Tom Wright and Bradley Hope, founders of Whalehunting.projectbrazer.com, have questioned whether the MOU could serve as a front for monetary laundering activities. They highlight the use of a Variable Capital Company (VCC) structure, which may be intended to conceal the identity of the actual owners.
The MOU enables the creation of a Digital Economy Regulatory Sandbox (DERS) and the Thailand International Digital Business & Finance Centre (TIDC). The DERS would allow experimentation with digital products, while the TIDC could serve as a gatekeeper, charging fees for participation in digital economy activities.
Wright and Hope argue that these policies could benefit scammers using digital assets as vehicles to launder proceeds from illegal online gambling, financial fraud and other criminal activities. International IT experts might assist criminals in evading money laundering scrutiny, they warn.
Wright believes Thai authorities will be compelled to take more decisive action against financial scams, especially if the US targets suspected assets and individuals in Thailand.
Regulatory response to questionable agreements
The Whale Hunting website reported that Wisit Wisitsora-at, former permanent secretary of the Digital Economy and Society Ministry, played a role in drafting the MOU. Wisit now chairs the Securities and Exchange Commission (SEC), raising suspicions about the SEC’s lack of action against suspected money laundering.
On November 20, the SEC issued a statement asserting it would not allow the capital market or digital assets to be used for money laundering and cybercrimes.
Following whistleblower revelations, Minister of Digital Economy and Society Chaichanok Chidchob on November 24 announced the cancelation of the MOU due to numerous suspicious aspects.
He further disclosed that George Tan, chief commercial officer at Capital Asia Investments, a Singapore-based fund manager, had signed the MOU with Thai authorities rather than executives from Prime Opportunity Fund VCC.
Simultaneously, the Personal Data Protection Committee ordered TIDC Worldverse Ltd—a TIDC affiliate—to halt its iris scan verification services in Thailand on the grounds that it did not comply with Thai law and mandated the deletion of records of 1.2 million people.
Problem of law enforcement and corruption
Local critics have long decried weak law enforcement and widespread corruption among Thai officials.
Assoc Prof Yuthana Sethapramote, an economist at the National Institute for Development Administration, commented: “It is alright for Thailand to develop as a financial hub, but implementation and law enforcement are key issues. We have to effectively implement the measures, and regulators have to do their jobs honestly.”
Thai regulators’ performance often compares unfavorably with the oversight of the Monetary Authority of Singapore. While Singapore stands out as a major Asian financial hub, liberalizing its financial markets and embracing decentralized digital assets, it has acted swiftly against money laundering and scam centers—recently seizing suspicious assets and arresting alleged scammers linked to Cambodian scam operations.
“The MAS works better because they have honest officials and their system is transparent,” Yuthana pointed out.
Public pressure a catalyst for change?
Amid the public outcry over Thai authorities’ sluggish response to “gray funds” and criminal networks, Bank of Thailand Governor Vitai Ratanakorn has, in recent days, reiterated the central bank’s commitment to cracking down on illicit financial transactions.
“There are gaps between plan and implementation and law enforcement; regulators have to do more,” said Pipat Luengnaruemitchai, chief economist at Kiatnakin Phatra Financial Group.
Public awareness of scams and corruption now is apparently high in Thailand, and this may be a factor in driving law enforcement.
“Pressure from the media and the public could potentially force authorities to actively carry out their duties,” added Yuthana.
