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Bank of Thailand Cracks Down on Mule Accounts

Bank of Thailand Cracks Down on Mule Accounts

The Bank of Thailand is tightening regulations on financial transactions to combat mule accounts and plans to implement stricter measures for digital assets and e-wallets in the upcoming phase.

Roong Mallikamas, the deputy governor for financial institutions stability, announced that the central bank has expanded the classification of mule accounts from three to five risk levels to enhance its management of financial fraud cases.

Currently, the regulator prohibits money transfers to dark grey and black mule accounts. Starting in March, this prohibition will extend to include soft grey, dark brown, and soft brown mule accounts.

Furthermore, Ms. Roong stated that from March onward, money transfers from soft brown and dark brown mule accounts via electronic channels will be banned. These accounts will also be prohibited from opening new deposit accounts, with enforcement beginning in March.

In terms of sharing information about mule accounts, the central bank plans to include digital asset and e-wallet operators in its reporting framework, in addition to existing financial institutions. This expanded measure is expected to take effect in March, in collaboration with the Securities and Exchange Commission (SEC).

“With a stronger database shared among all relevant parties involved in mule account protection, our ability to identify mule accounts has significantly improved, enabling us to better prevent financial fraud and protect consumers,” Ms. Roong said.

As of December 2024, 1.75 million mule accounts have been closed, affecting 134,000 depositors.

Ms. Roong highlighted that regulators expect banks to monitor money transfers linked to digital assets. When such transactions occur repeatedly, they can help identify financial behavior that may be associated with mule accounts.

The regulator also intends to tighten measures for corporate mule accounts and is considering a ban on opening new deposit accounts connected to such activities starting next month.

In a related update, Daranee Saeju, assistant governor of the central bank’s payment systems policy and financial consumer protection group, indicated that the regulator supports the recent cabinet approval of an amendment to the emergency decree aimed at addressing mobile financial scams. This amendment emphasizes shared responsibility among financial institutions, telecom operators, and users.

All parties involved should be held accountable based on their respective failures, she noted. The central bank is studying Singapore’s shared-responsibility model and considering adopting measures such as a money-lock system to protect victims of financial scams. However, Ms. Daranee mentioned that more time is needed to evaluate and implement these measures.

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