BoT launches debt relief and fraud crackdown in Phuket
To ease the financial burden on struggling debtors and combat rampant financial fraud, the Bank of Thailand’s Southern Office unveiled a new initiative in Phuket yesterday, April 3.
The You Fight, We Help programme aims to provide critical support for citizens and small businesses facing financial difficulties while also tackling the growing issue of financial crime.
Thatlap Paoleuangthong, Senior Director of the Bank of Thailand Southern Office, introduced the debt resolution programme, which has been launched in collaboration with the Ministry of Finance and other partners.
The initiative includes three key measures to assist those in debt:
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Pay Directly, Retain Assets – This measure is designed for mortgage, car loan, and small business debtors. It offers reduced instalments and a three-year suspension of interest payments. Payments made will go towards reducing the principal, and interest will be waived if certain conditions are met.
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Pay, Close, Finish – Aimed at non-performing loan (NPL) holders with debts under 5,000 baht, this option allows partial payments to settle outstanding balances.
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Reduce Instalments, Reduce Interest – For vehicle registration loans and personal finance agreements, borrowers can benefit from a three-year reduction in both repayment amounts and interest rates. Under this plan, individuals will pay only 70% of their original instalments, with a 10% reduction in interest rates.
For those interested, full details of the programme and registration information are available on the Bank of Thailand’s website or through its call centre at 1213.
In addition to these measures, the Bank of Thailand is strengthening its efforts to combat financial fraud, particularly through the use of mule accounts.
Criminals frequently use these accounts to launder money, and the Bank of Thailand is now working with partner organisations to tighten regulations. New account openings will be under increased scrutiny, and high-risk cases will face extended account suspensions, reported The Phuket News.
As part of the fraud prevention initiative, financial institutions are now required to warn recipients before transferring funds to suspected mule accounts. The aim is to stop fraud at the source.
Furthermore, police are focusing on legal entities that criminals use to bypass restrictions on personal accounts, enhancing registration checks and closely monitoring suspicious corporate activity.
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