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Thailand to implement stringent compliance regulations for new bank accounts
The action is a response to the utilization of accounts for illicit or fraudulent activities. From November of the previous year to date, local authorities have shut down over 300,000 mule accounts.
Thai authorities are set to enforce severe compliance regulations for customers seeking to open new bank accounts in the country.
Key takeaways
- Thai authorities are set to apply stricter compliance regulations to the opening of new bank account processes.
- From November of last year to the present, local authorities have closed more than 300,000 mule accounts.
- The Thai authorities’ experts estimate that the number of accounts used with fraudulent methods could have reached one million.
The move comes as a result of the use of accounts for illicit or fraudulent activities, from November of last year to the present, local authorities have closed more than 300,000 mule accounts.
The initiative will be held by the anti-online scam center AOC 1441 in collaboration with the Bank of Thailand, the Anti-Money Laundering Office (AMLO), and the Securities and Exchange Commission.
Prasert Jantararuangtong, Minister of Digital Economy and Society explained that the regulations are set to be implemented by June 1, requiring all banks to rigorously apply the Customer Due Diligence (CDD) approach.
According to experts from the Thai authorities, it is estimated that the accounts used with fraudulent methods could have reached the amount of one million.
The importance of banking compliance
Over the last few years, the compliance industry in the digital banking sector has rapidly grown due to the response and commitment of financial institutions along with different government initiatives.
Statista forecasts an 8.69% growth in Thailand’s digital banks market from 2024 to 2028, indicating a positive trajectory for the industry. This growth is expected to be accompanied by an increase in compliance-related activities as banks strive to meet regulatory requirements and protect against financial crimes.
The Thai banking industry, historically vital to the nation’s economy, has experienced a transformation. McKinsey’s insights suggest that the sector, after a period of stagnation, is now poised to reclaim its regional leadership by embracing innovative operational changes and focusing on growth. This includes a shift towards digital banking, which necessitates a robust compliance framework to ensure the integrity and stability of financial transactions.
In conclusion, the compliance industry in Thailand’s digital banking sector is growing dynamically, fueled by regulatory advancements, technological innovation, and a focus on enhancing the digital banking experience.
As the industry evolves, compliance will remain a cornerstone, ensuring that the digital transformation of banking is secure, sustainable, and aligned with international best practices. The ongoing developments in Thailand’s banking landscape present both opportunities and challenges for compliance professionals, who are at the forefront of safeguarding the financial ecosystem against emerging risks.
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