Thailand law change to combat pyramid schemes after iCon scandal

Thailand is moving swiftly to draft amendments aimed at closing loopholes in various laws to better combat pyramid-like schemes as announced by Deputy Finance Minister Julapun Amornvivat today, October 22. The initiative comes in response to the extensive damage caused by The iCon Group’s direct sales scandal.

Prime Minister Paetongtarn Shinawatra tasked multiple agencies, including the Justice Ministry and Finance Ministry, with reviewing and addressing these legal gaps. Julapun clarified that the proposed amendments would be scrutinised by the Council of State before being forwarded to the Cabinet for approval.

The entire process is expected to be completed within three months, reflecting the government’s sense of urgency, said Julapun.

“The aim is for authorities to prosecute team leaders at every level of a pyramid scheme, and penalties are proportionate to the damage caused.”

Julapan added that potential changes to bankruptcy filings and the extension of the statute of limitations for related cases are also being considered to tackle evolving fraud methods.

“Scams have evolved, and there are several forms of them. We must close any loopholes. We’re hoping these planned amendments will more effectively prevent various types of fraud.”

The assistant national police chief, Police Lieutenant General Akkaradej Pimolsri, reported that no new charges were filed against the 18 suspects in The iCon Group case today. Investigations into their financial activities continue, and police are still gathering evidence before seeking arrest warrants for additional suspects.

Earlier, police charged the 18 suspects, including Warathaphon “Boss Paul” Waratyaworrakul and three celebrities, with public fraud and allegedly inputting false information into computer systems. Additional charges of money laundering, fraudulent borrowing, and illegal assembly have also been levied, according to police sources.

Deputy commissioner of the Central Investigation Bureau (CIB), Police Major General Jaroonkiat Pankaew, disclosed that police are examining several audio clips found on Warathaphon’s phone. These recordings allegedly feature conversations with politicians and activists who were extorting him.

The scandal touches upon multiple laws, including the 2002 direct sales and direct marketing law, the 1984 fraudulent loan law, the 1979 consumer protection law, the 2017 computer crime law, the 1999 anti-money laundering law, and the Criminal Code. The proposed amendments aim to tighten regulations across these areas to prevent similar schemes in the future, reported Bangkok Post.