Thailand launches framework against illicit activities in the financial sector

The BOT will promote data sharing amongst organisations.

The Bank of Thailand (BOT) and local financial service providers have jointly developed a framework to safeguard against illicit activities in the financial sector.

The “Framework for Safeguarding the Financial Sector from Illicit Activities” aims to protect the Thai public from harm arising from the misuse of financial services, the central bank said in a statement on 10 September.

Under the framework, participating organisations are expected to establish clear strategic direction, policies, and governance arrangements to prevent the misuse of the financial system, the BOT said.

They are also expected to translate these principles into concrete and effective preventive measures, with minimum standards that are regularly updated, it said.

Participating organisations include the Thai Bankers’ Association, the Association of International Banks, the Government Financial Institutions Association, the Thai E-Payment Trade Association, the Thai Association of Foreign Exchange and Financial Services, and 6 associations of non-bank lenders.

They are expected to cooperate and work with relevant stakeholders across sectors to enhance the collective ability to address what the BOT said are increasingly sophisticated fraudulent transactions.

The organisations are also expected to use their strengths in data analysis, technology, and expertise to optimise surveillance, detection, and response capabilities.

The BOT said it will promote data sharing amongst the organisations to close loopholes that may be exploited for illegal activities, it said.

The BOT said it will strengthen system-wide supervisory standards, including customer and counterparty due diligence.

The central bank said it will use data, technology, and its expertise to improve its capabilities.

The central bank will also push for initiatives to raise the awareness and financial literacy of the public, it said.