A series of scandals has rocked the Stock Exchange of Thailand (SET), contributing towards making it one of the poorest performers among world capital markets.
Attention has now turned to allegations that some firms may be involved in scams linked to notorious financial scam centers operating out of Cambodia.
Investigative journalist Tom Wright reported that a financial institution listed on the SET has allegedly been taken over by scammers operating in Cambodia. Thailand’s Securities and Exchange Commission (SEC) is investigating these claims, according to Sarinee Achavanuntakul, an independent researcher closely following the issue.
The SEC has not made any public statement so far, while critics blame both the government and Thai regulators for being slower in responding compared to other countries, which have already seized assets belonging to the alleged scammers.
Meanwhile, an official at the Bank of Thailand (BOT) privately said that Kasikornbank has ended its role as a correspondent bank of B.I.C Bank (Cambodia). Kasikornbank has not made any public statement about its operations in Cambodia linked to B.I.C Bank, which has been targeted by US lawmakers for alleged involvement in scam activities.
Too little, too late?
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the government planned to establish a national Data Bureau to combat capital flows allegedly involved in illegal activities. The government has also announced a campaign against scammers as a national agenda, which drew criticism that “while our house is on fire, the Thai government just talks about what it’s going to do”.
The BOT has pledged to step up its campaign against suspected transactions via financial institutions and to support the efforts of the Anti-Money Laundering Office (AMLO) in tackling money laundering.
Meanwhile, outspoken former deputy police chief Surachate Hakparn recently accused the Royal Thai Police of being “the biggest criminal organization in Thailand”, denouncing the police for allegedly being behind most scam call centers and online gambling networks in the country. The National Police chief has strongly denied these allegations.
“I think the Thai authorities do not have adequate data to monitor grey money due to fragmentation in the oversight of financial institutions,” says Assoc Prof Nada Chunsom, economist at the National Institute of Development Administration (NIDA) University. She agrees with Ekniti’s plan to create a national Data Bureau to monitor money transactions involving criminals and believes that it is possible some listed firms may be involved in financial scams. There may be loopholes that scammers could exploit in the capital market, she notes. For example, scammers could use nominees or cross-shareholding among their networks to control local firms, according to Nada.
“The SEC needs to develop a data system that could effectively detect grey money transactions, especially via licensed crypto exchange platforms,” she suggests.
Singapore’s campaign against cybercrimes
Nada points out that the Monetary Authority of Singapore (MAS), the country’s central bank, may have a better data system enabling Singapore police to quickly seize assets from scammers linked to Cambodia.
Last year, the MAS and the Infocomm Media Development Authority of Singapore (IMDA) introduced the Shared Responsibility Framework (SRF) for phishing scams. This framework strengthens the direct accountability of financial institutions and telecommunication providers to consumers for losses incurred from such scams. The SRF assigns specific duties to mitigate phishing scams and sets expectations for payouts to affected scam victims where these duties are breached, according to the MAS website.
On October 30, Singapore police seized and issued prohibition of disposal orders against six properties and various financial assets tied to Cambodian businessman Chen Zhi and his company, Prince Group, over money laundering and forgery offences, according to a report in the Straits Times.
The value of the assets, including bank accounts, securities accounts and cash are estimated at more than S$150 million (over 3.7 billion baht), according to the police. Recently, the Singapore police also issued arrest warrants for 34 people—27 Singaporeans and seven Malaysians—allegedly linked to 438 scam cases in Cambodia, over total damage of S$41 million (about 1 billion baht). Singapore also cooperated with Malaysian police to hunt for suspects.
The Prince Group has been sanctioned by the United States and United Kingdom for alleged involvement in cybercrime, though the group has denied the allegations.
Thailand’s recent progress
In Thailand, oversight of financial crimes such as money laundering is divided loosely among the SET, the BOT and the AMLO. Recently, the AMLO announced the seizure of assets belonging to a coalition government MP and his associates for alleged transactions involving illegal gambling. Thai police also reported arresting some Chinese nationals linked to scammers in Cambodia.
Opposition MP Wiroj Lakkhanaadison criticized the government for doing little to crack down on scam operations. “It is very disappointing that so far the authorities could not arrest any Thai national who laundered money for Cambodian scammers,” Wiroj posted on his Facebook page. He estimated annual losses in Thailand caused by illegal call centers or scammers at around 115.3 billion baht, with the elderly accounting for 22 per cent of victims.
Meanwhile, the House Committee on National Security has testified about people allegedly involved in scamming activities, including Sathit Limpongpan, former permanent secretary for finance at the Finance Ministry. His role as former chairman of B.I.C Bank (Cambodia) raised suspicion about illegal activities. Sathit, who was also a former SET chairman, has denied any involvement, saying he was B.I.C Bank chairman only during its establishment stage and left before the bank began operations.
Border conflict complicates crackdown
The recent resurgence of border clashes with Cambodia, despite the two countries signing a joint peace declaration presided over by US President Donald Trump, has complicated efforts to address scammer issues in Thailand and Cambodia.
“The recent incident of anti-personnel mines injuring Thai soldiers suggests the Cambodian government is orchestrating hybrid warfare to sway the Thai community from cracking down on scammers, and some influential Thai figures [allegedly involved with scammers in Cambodia] may like it because they could be targeted,” said opposition MP Rangsiman Rome, chairman of the House Committee on National Security.
According to Rangsiman, scammers in Cambodia have the potential to destabilize the Thai economy and society, not only by stirring the border conflict, with the Cambodian government trying to protect the scammers targeted by international communities.
He also raised concerns about foreign nationals using Thailand as a money-laundering base, buying Thai companies with illicit funds, which could threaten national security. Rangsiman noted that some progress had been made as Thai society became more aware of the threat of scammers and legal actions were taken against government politicians. He referred to the seizure by the AMLO on November 11 of assets worth 159 million baht from coalition MP Chonnapat Naksua and his associates as part of a crackdown on online gambling.
Rangsiman urged Prime Minister Anutin Charnvirakul not to be swayed by Cambodian tactics. He called on the PM to continue efforts to arrest key scammers in Thailand and take action against ministers suspected of involvement in scamming operations.
By Thai PBS World’s Business Desk
