BOT and Financial Sector Enhance Illegal Transaction Prevention

Post Today•Economy•10d ago

Reader Briefing

The Bank of Thailand and supervised financial businesses have launched a cooperation framework to prevent the financial sector from being used for illegal activities.

•The Bank of Thailand (BOT) and supervised financial businesses are implementing the Framework for Safeguarding the Financial Sector from Illicit Activities.
•The framework establishes five core principles to guide participating agencies in preventing the financial system from supporting technological crimes and corruption.
•The initiative involves various entities including the Thai Payment Service Providers Association, Association of Banks, and non-bank lenders.
•The goal is to create a stable, safe, and trusted financial system that protects the public from financial misuse.

Overview

•The Bank of Thailand and supervised businesses are driving the Framework for Safeguarding the Financial Sector from Illicit Activities.
•Vitai Rattanakorn, Governor of the Bank of Thailand, stated that the framework aims to proactively prevent the Thai financial system from being used as a channel for technological crimes and corruption.
•The cooperation framework defines five core principles: organizational governance, standardized practical guidelines, proactive development using expertise and data, knowledge sharing, and balanced impact consideration.
•The Bank of Thailand will upgrade minimum standards to prevent deposit accounts and e-Money from being used for illegal fund transfers.
•The Thai Payment Service Providers Association and payment businesses will enhance Know Your Merchant (KYM) and KYC/CDD/EDD processes for e-Money account holders.
•The Association of Banks will utilize advanced technology to protect customers proactively and support public-private partnerships to combat fraud and money laundering.
•The State Financial Institutions Association will build financial and digital immunity for the public, specifically targeting the elderly, farmers, and vulnerable groups.
•The Foreign Exchange and Financial Services Association will develop a risk person database and create AML/CFT operational manuals for the industry.

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Key Entities

Organization

Bank of Thailand(ธนาคารแห่งประเทศไทย)ℹ️

The central bank and regulator that initiated the framework to prevent illegal transactions in the financial sector.

BOT(ธปท.)

Abbreviation for the Bank of Thailand.

Thai Payment Service Providers Association(สมาคมการค้าผู้ให้บริการชำระเงินทางอิเล็กทรอนิกส์ไทย)

An association that will enhance KYM and KYC/CDD/EDD for payment services and e-Money.

AIB

An entity through which the Association of Banks will strengthen industry cooperation via forums.

Thai Bankers' Association(สมาคมธนาคารไทย)

An association that will promote knowledge exchange and use technology to protect customers.

State Financial Institutions Association(สมาคมสถาบันการเงินของรัฐ)

An association focused on building financial and digital immunity for vulnerable groups such as the elderly and farmers.

Foreign Exchange and Financial Services Association(สมาคมแลกเปลี่ยนเงินตราต่างประเทศและบริการทางการเงิน)

An association that will develop risk person databases and AML/CFT manuals.

Non-bank lenders(ผู้ประกอบธุรกิจสินเชื่อที่มิใช่สถาบันการเงิน (Non-bank lenders))

Financial business operators that will enhance detection of high-risk transactions and share risk patterns.

Person

Vitai Rattanakorn(วิทัย รัตนากร)

Governor of the Bank of Thailand.

Policy

Framework for Safeguarding the Financial Sector from Illicit Activities(กรอบความร่วมมือเพื่อป้องกันธุรกรรมผิดกฎหมายในภาคการเงิน (Framework for Safeguarding the Financial Sector from Illicit Activities))

A cooperation framework designed to prevent the financial sector from being used as a tool for illegal activities.