Bank of Thailand gets tougher on mule accounts with new rules

Beginning Jan 31, financial institutions prohibited from processing transactions to or from suspected mule accounts

 

The Bank of Thailand (BOT) has announced a significant escalation in its efforts to combat the use of mule accounts in financial scams.  

 

Speaking at a media briefing on Thursday, deputy governor Roong Mallikamas outlined enhanced preventative measures aimed at making it harder for criminals to exploit these accounts.   

 

Starting Friday (January 31), financial institutions will be prohibited from processing transactions to or from suspected mule accounts.  Banks will also be required to immediately notify customers if they are attempting to transfer funds to a potentially fraudulent account.

  


The BOT is improving its ability to detect mule accounts by facilitating information sharing between banks. This will provide a comprehensive, system-wide view of suspicious accounts, a capability previously limited by restrictions on inter-bank data exchange.   

 

These measures are designed to swiftly prevent losses arising from mule accounts. Banks will have the power to freeze both incoming and outgoing transfers and even block the opening of accounts suspected of being used for illicit purposes.   
  



 

The BOT is also targeting accounts linked to cryptocurrency transactions. Accounts that regularly receive funds and then quickly transfer them to cryptocurrency exchanges will be flagged as potentially suspicious and could be subject to transaction restrictions to prevent capital flight.   

 

To further deter the creation of mule accounts, the BOT will make the account opening process more stringent. Banks will be empowered to refuse account openings if the applicant's circumstances are unclear or to impose transaction limits or even deny account access from the outset.

(2025/01/30-00:00)