New digital fraud prevention measures aim at disrupting operation of BOT-controlled mule accounts.
The Bank of Thailand Introduces Tougher Measures Against Digital Fraud
In response to the rising issue of mule accounts, the Bank of Thailand (BOT) is set to implement new guidelines aimed at strengthening digital fraud management. This move comes after a bank employee was allegedly connected to the opening of fraudulent accounts used in call centre operations.
The bank in question has been ordered to promptly investigate the matter and provide a detailed account of the incident. Daranee Saeju, Assistant Governor of the BOT, emphasized the requirement for banks to adhere to stringent procedures when foreign nationals open accounts in Thailand, particularly in verifying identity documents and conducting thorough customer due diligence.
should any wrongdoing by bank staff be established, appropriate disciplinary action will be taken, Daranee stated. The BOT is collaborating with the Anti-Money Laundering Office (AMLO) to further investigate the case, and legal proceedings may be initiated if regulations or the law are violated.
As part of these new measures, banks will need to verify customer identities using multiple data sources. They will also have to assess the risk of their accounts being exploited for fraud and categorize customers based on their risk profiles. This may involve setting daily transaction limits or lowering the threshold for facial recognition for new accounts.
Enhanced know your customer (KYC) and customer due diligence (CDD) processes will form a key part of these new guidelines. Banks will cross-check names against AMLO's database of potential mule accounts to identify any potential risks.
The updated guidelines, scheduled to take effect in June, are part of the BOT's broader commitment to safeguarding the public from financial crime. Additionally, the BOT is preparing standards that will hold banks and e-money firms liable for damages if they fail to implement robust anti-fraud measures such as biometric verification.
- Additional Information: Over 135,000 mule accounts have been suspended, 869 suspects arrested, and 1.5 million mule accounts seized this year due to ongoing crackdowns on cybercrimes.
- The Bank of Thailand's (BOT) new guidelines against digital fraud will require banks to implement enhanced know your customer (KYC) and customer due diligence (CDD) processes, including verification of customer identities using multiple data sources and assessing the risk of accounts being exploited for fraud.
- To safeguard against financial crime, the BOT is collaborating with the Anti-Money Laundering Office (AMLO) to investigate suspected cases of fraudulent activities and potentially initiate legal proceedings if regulations or the law are violated.
- The BOT is also preparing standards that will hold banks and e-money firms liable for damages if they fail to implement robust anti-fraud measures such as biometric verification, as part of their efforts to combat crime and fraudulent activities in the banking-and-insurance industry.
