Bank of Thailand implements new framework to combat illicit financial activities

The Bank of Thailand and 11 financial sector associations have agreed to a new framework designed to prevent the financial system from being exploited for illicit activities. The initiative, known as the Framework for Safeguarding the Financial Sector from Illicit Activities, aims to strengthen 'know your customer' (KYC) protocols, customer due diligence, and enhanced due diligence requirements.

Key measures include increased scrutiny of high-risk cash transactions and the deployment of modern technology to detect unusual transaction patterns. The plan also involves creating a database of high-risk individuals that will be linked to the Central Fraud Registry, allowing for better information sharing across the banking sector to support investigations and freeze suspected accounts.

Participating organizations include the Thai Bankers’ Association, the Association of International Banks, the Government Financial Institutions Association, and several non-bank lenders, payment providers, and money changers. In addition to technical and regulatory controls, the framework includes industry-wide guidelines for anti-money laundering and countering the financing of terrorism, alongside financial literacy initiatives delivered through community networks.