Thai banks to ban mule account transactions next month
The banking sector will introduce a ban on financial transactions involving mule accounts next month, adhering to a directive from the Bank of Thailand.
Following a recent meeting of the Joint Standing Committee on Commerce, Industry and Banking, Payong Srivanich, chairman of the Thai Bankers’ Association, announced that banks are upgrading their operational and security systems to block transactions across five risk levels of mule accounts.
The industry aims to comply fully with the central bank’s measures by next month.
Under these regulations, money transfers to additional categories of mule accounts, soft grey, dark brown, and soft brown, will be prohibited from March 2025.
Transfers from dark brown and soft brown accounts are also banned, and people previously associated with mule accounts will be restricted from opening new deposit accounts. The enforcement of these rules is set for next month.
The regulator also intends to ban the creation of new corporate mule accounts by February.
Payong stated that government and private sector entities are collaborating to combat financial crime, aiming to dismantle criminal organisations and prevent mule account usage.
Banks have been blocking transfers to high-risk dark grey and black accounts since last month, following the central bank’s directive. The Thai Bankers’ Association has established the Central Fraud Registry to share mule account data, leading to the closure of over 1.8 million accounts.
“The government is committed to addressing financial scams comprehensively. This strategy involves cooperation among regulatory agencies, banks, telecommunications companies, digital platforms, e-wallet providers, and consumers,” said Payong.
“The private sector supports the government’s decision to suspend power supply in certain border areas near Myanmar to help curb scam activities, enhancing security and confidence for all stakeholders.”
Payong added that banks will adhere to the forthcoming rule on shared responsibility among financial institutions, telecom operators, and mobile service users, following the Cabinet’s approval of an emergency decree amendment addressing mobile financial scams, reported Bangkok Post.
“Through thorough collaboration, we aim to effectively prevent and combat financial scams and cyber-risks. The banking sector is dedicated to working with all relevant parties to fight financial crime and improve security systems,” said Payong.
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