Bangkok Post - Banks step up monitoring of grey money. Banks pledge to maintain stringent monitoring and investigations of grey money transactions, in compliance with the Bank of Thailand's heightened measures.

Banks step up monitoring of grey money

Central Investigation Bureau police announce the seizure of a large amount of assets and cash, including 31 million baht in US and Thai currency, held by money launderers and 684 mule account owners linked to a gambling website, in October last year. (Photo: Wassayos Ngamkham) 

Banks pledge to maintain stringent monitoring and investigations of grey money transactions, in compliance with the Bank of Thailand's heightened measures.

According to Payong Srivanich, chairman of the Thai Bankers' Association (TBA), banks have fully complied with directives from all relevant agencies for monitoring and investigating suspicious financial activities potentially linked to grey money and online scams.

The banking sector has also upgraded its "Know Your Customer" systems to reflect current circumstances and enhanced technologies aimed at preventing financial fraud and scams.

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In terms of financial transactions and transfers, banks are supervised by the Bank of Thailand, the Anti-Money Laundering Office and the Securities and Exchange Commission, while also adhering to international compliance standards.

However, the central bank's tracking of money trails and financial transactions currently covers only regulated financial institutions.

Related regulatory agencies overseeing online scam prevention are encouraged to share information under the government's "Connect the Dots" framework to strengthen collaborative crime prevention efforts, he said.

Mr Payong said authorities may need to amend existing laws such as the Personal Data Protection Act to better address emerging challenges, or introduce new regulations, particularly those governing digital assets and cryptocurrencies.

On Tuesday, the central bank announced intensified efforts to tackle the problem of grey money -- funds linked to suspicious or unlawful activities -- by tightening monitoring and oversight measures throughout the financial system.

According to central bank governor Vitai Ratanakorn, the regulator is enhancing its processes for detecting and investigating undesirable transactions to address the growing problem of illicit funds and block the use of Thailand's financial system for illegal purposes.

Key measures include enhanced customer due diligence where commercial banks are being urged to place greater emphasis on verifying and investigating suspicious transactions involving deposits or transfers -- for example, accounts used in online gambling or operated by scammers.

The central bank will also tighten regulatory scrutiny of financial service providers under its supervision, including authorised money transfer agents, authorised money changers, e-wallet operators and entities involved in gold transactions that may be linked to illicit activities, he said.

The goal is to ensure comprehensive tracing and monitoring of financial flows that could be connected to fraud or corruption, in line with the evolving nature of financial crime.