The Securities and Exchange Commission (SEC) is rolling out one of its most significant anti-financial crime initiatives in recent years, aiming to close loopholes that fraudsters, money launderers and cybercriminals could exploit to channel illicit funds through Thailand's capital markets.According to Pornanong Budsaratragoon, secretary-general of the SEC, the new guidelines require capital market intermediaries to strengthen customer due diligence, transaction monitoring, and beneficial ownership verification processes, as regulators seek to prevent the financial system from being used as a conduit for money laundering and technology-enabled crime.
Rather than simply adding another layer of know-your-customer requirements, the SEC is repositioning brokers, asset managers, and other market participants as the first line of defence against mule accounts, illicit fund flows, and cyber-enabled financial crime before illegal money enters Thailand's financial system.
Stricter Screening
Under the new framework, firms are required to conduct enhanced scrutiny throughout the customer lifecycle, beginning with account-opening procedures.
The guidelines emphasise identifying ultimate beneficial owners, especially for corporate clients, verifying the legitimacy of funding sources, and continuously monitoring transaction activity to ensure transactions remain consistent with a customer's risk profile.
