Stock market regulators are enhancing their collaboration with the Anti-Money Laundering Office (AMLO) to combat illegal securities trading, aiming to dismantle criminal economic activities and boost investor confidence in the Thai capital market.
A memorandum of understanding (MoU) was signed on Monday by the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET), committing to strengthen their partnership under both the Securities and Exchange Act and the Anti-Money Laundering Act.
This collaboration seeks to break down criminal economic activities, particularly those involving securities trading, while enhancing the law enforcement capabilities of both agencies and facilitating their joint operations.
“Economic crimes within the capital market not only harm individual investors but also have wider repercussions for the country’s economy,” stated SEC chairman Wisit Wisitsora-at.
He noted that several significant cases have emerged in the capital market over the past few years, resulting in considerable financial damage and far-reaching effects.
SET chairman Kitipong Urapeepatanapong emphasized that the signing of the MoU is intended to assure the public that any future violations of securities laws will prompt swift and coordinated actions from the relevant authorities against the offenders.
The authorities plan to streamline processes and improve the transition of cases between regulators and law enforcement agencies, ensuring quicker and more effective responses within their legal frameworks.
SEC secretary-general Pornanong Budsaratragoon mentioned that this new trilateral agreement is expected to enhance cooperation in information sharing, coordination, and the possible establishment of joint task forces when necessary.
The aim is to bolster prevention and enforcement measures against unfair trading practices, embezzlement, fraud, and financial misconduct under the Securities and Exchange Act B E 2535 (1992), which are considered predicate offenses under the Anti-Money Laundering Act, both of which affect investor confidence and economic growth.
SET president Pakorn Peetathawatchai highlighted that collaboration among agencies within the justice system can effectively deter and swiftly address legal violations.
“Such initiatives are vital for restoring and enhancing investor confidence in the Thai capital market,” he remarked.
This agreement comes as the SEC and SET have been actively coordinating their efforts regarding Warrix Sport. The listed apparel company recently reported that 15 million shares used as collateral with the custodian have gone missing, despite no loan repayment defaults.
Ms. Pornanong stated that regulators have been engaged in discussions with Warrix executives since last week. However, the custodian, Wisan Wanasuksrisakul, who is also Warrix’s chief executive and largest shareholder, deposited the shares with a company outside the SEC’s oversight.
“As a result, we lack the authority to take action, but if any actual wrongdoing is found, it will be dealt with through legal corruption proceedings,” Ms. Pornanong explained.
Mr. Wisan informed the SET last week that the company sold 14,942,530 shares, or 2.49%, to Hi-Tech Apparel, a sportswear original equipment manufacturer and exporter for various global brands, by conducting a transaction through the Thailand Securities Depository Co.
He has since terminated the loan agreement and initiated legal proceedings to locate the missing shares, demanding that the custodian return all shares deposited as collateral. Furthermore, he has requested a court order to seize the remaining 105,211,000 shares in the custodian’s possession, preventing them and their representatives from selling or transferring those shares.
