Thai CB High Risk Customer Accounts

On May 31, Thai CB issued rules re deposit account management.

  • Thai CB issued circular letter on increasing strictness in deposit account management or electronic money accounts in cases where customers are considered high risk.
  • Establishes measures for financial service providers to adhere to, in order to raise the level of action where customers use accounts with abnormal characteristics/behavior.
  • Document dated May 31, 2024, received from Thai CB Jun. 4, summarized Jun. 7.
  • Implementing Measures
  • Measures include collaborating with external agencies involved with the Royal decree on measures for the prevention and suppression of technological crime, B.E. 2023.
  • Financial service providers must be strict about opening accounts for high-risk individuals under Thai AML's list or those who have exhibited unusual behavior.
  • For high risk individuals, firms must verify additional facts about the customer, such as checking source of funds, customer's occupation, and purpose of opening an account.
  • Financial service providers must then enhance detection and track the accounts of high-risk customers to mitigate risks that accounts could be used to launder money.
  • Detection can be carried out by using information from the central fraud registry.
  • Exchange of Information
  • Financial service providers shall collectively define categories of people who are considered high risk, determine guidelines for managing them according to risk level.
  • Leverage exchange of information systems, to prevent opening of mule accounts.
  • Effectiveness
  • The rules are effective immediately on May 31, 2024, except for the use and exchange of information according to section 3.2, which must be completed by Jul. 31, 2024.
  • In Jun. 2024, Thai CB announced enhancements to fraud management, see #215747.

Regulators Thai CB
Entity Types Bank; MSB
Reference Cir Lt FTT. (01) W. 384/2567, 5/31/2024
Functions AML; Compliance; Financial; Fraud; Reporting; Risk
Countries Thailand
Products Banking; Deposits
Regions AP
Rule Type Final
Rule Date 5/31/2024
Effective Date 7/31/2024
Rule Id 214560
Linked to Rule :215747
Reg. Last Update 5/31/2024
Report Section AML & Enforcement

Last substantive update on 06/07/2024