THAILAND: The Thai banking industry will implement a ban on financial transactions involving mule accounts beginning March 2025, as part of a regulatory push by the Bank of Thailand to strengthen measures against financial crime.
The ban is intended to target both individual and corporate mule accounts across multiple risk categories.
Payong Srivanich, chairman of the Thai Bankers’ Association (TBA), confirmed the industry’s readiness during a meeting of the Joint Standing Committee on Commerce, Industry, and Banking on 5 February.
He stated that banks are upgrading their operational and security systems to block transactions involving mule accounts, which are classified into five risk levels, including dark brown, soft brown, and soft grey. The industry aims to fully comply with the central bank’s enforcement requirements by next month.
Under the new regulations, money transfers to soft grey, dark brown, and soft brown mule accounts will be prohibited, effective March 2025.
Furthermore, transfers from dark brown and soft brown mule accounts will be blocked. Individuals previously associated with mule accounts will be barred from opening new deposit accounts. The ban on opening new corporate mule accounts is expected to be enforced within February 2025.
Mr Payong highlighted the collective efforts of various stakeholders, including government bodies and private sector entities, in combating financial crime.
These efforts extend to curbing criminal activities linked to scam networks and preventing the misuse of mule accounts, which are commonly exploited for laundering proceeds from fraudulent schemes.
Since last month, banks have already been blocking money transfers to high-risk dark grey and black mule accounts, as directed by the Bank of Thailand.
The TBA has played a crucial role in this initiative by establishing the Central Fraud Registry, which allows banks to share data related to mule accounts. This collaborative effort has resulted in the closure of more than 1.8 million mule accounts, according to Mr Payong.
“The government is committed to tackling financial scams from upstream to downstream,” he said. “This solution involves collaboration among regulatory agencies, banks, telecom companies, digital platforms, e-wallet service providers, and consumers.”
Mr Payong also noted that the private sector has supported the government’s decision to suspend power supply to certain border areas near Myanmar as part of efforts to curb cross-border scam operations.
Another significant measure will be the implementation of a rule on shared responsibility among financial institutions, telecom operators, and mobile service users. This measure follows the cabinet’s approval of an emergency decree amendment aimed at addressing financial scams conducted via mobile devices.
“Through comprehensive collaboration, we aim to effectively prevent and combat financial scams and cyber-risks,” Mr Payong said. “The banking sector is committed to working with all relevant parties to fight financial crime and enhancing security systems.”
The Bank of Thailand’s directive reflects the growing urgency of tackling financial fraud amid a surge in online scams in recent years.
By leveraging inter-agency cooperation and technological improvements, Thai authorities aim to restore public confidence and reduce the risks posed by organised criminal networks.
