As announced by the Bank of Thailand on June 13, 2024, regarding the enhancement of measures to combat financial fraud, the management of mule accounts has been elevated from the "account" level to the "individual" level. Stricter measures have been implemented for both existing accounts and new account openings. The Bank of Thailand issued a circular on strengthening the management of deposit accounts or electronic money accounts for customers with high risk or accounts exhibiting unusual characteristics or behaviors. This directive enables banks to utilize data from the Central Fraud Registry (CFR), a system for sharing financial transaction information across the banking sector, to facilitate investigations and account freezes of suspected individuals. This cross-bank data sharing allows for more comprehensive and rapid action against suspicious accounts while maintaining consistent standards.

Effective from August 1, 2024, all commercial banks have commenced cross-bank data sharing through the CFR system and are implementing these measures thoroughly. Actions include suspending electronic channels for all accounts until the account holder undergoes thorough verification, as well as considering the denial of new account openings. These steps aim to prevent and address vulnerabilities that could allow mule accounts to cause further harm to others.

For accounts listed in police reports or designated by the Anti-Money Laundering Office (AMLO), account holders whose accounts are suspended must coordinate with the Anti-Online Scam Operation Center (AOC) at 1441 to liaise with assigned police officers for further investigation into their involvement in related cases. In cases where banks identify accounts with suspicious behavior but no formal complaints have been filed, banks will implement minimum measures by immediately suspending transactions through electronic channels. This requires accountholders to undergo thorough verification to mitigate the risk of their accounts being exploited by fraudsters.

Mr. Ronadol Numnonda, Deputy Governor for Financial Institutions Stability, expressed gratitude to the Thai Bankers’ Association and its member banks for their expedited efforts in developing robust and risk-appropriate guidelines for managing deposit accounts used or potentially used in technology-related crimes. Additionally, the enhancement of the Central Fraud Registry (CFR) now enables cross-bank sharing of suspicious account data, a capability previously unavailable. This facilitates more comprehensive and rapid action against mule accounts and supports the evaluation of new account openings, enhancing the safety of financial services for the public. The Bank of Thailand will continuously monitor banks’ implementation and evaluate the effectiveness of these measures to ensure efficient mule account management, address online fraud, and provide swift assistance to the public, thereby fostering greater confidence in digital financial services.

Mr. Payong Srivanich, Chairman of the Thai Bankers’ Association, says, “The Thai Bankers’ Association and its member banks have intensified and sustained efforts to address mule accounts by collaboratively developing an Industry Standard, which has already been implemented. This aligns with the Bank of Thailand’s directive to elevate measures against financial fraud, focusing on preventing and managing mule accounts to ensure the banking system is not exploited by fraudsters to transfer illicit funds obtained from deceiving the public. The Industry Standard encompasses measures to prevent new mule accounts and enhance detection of existing ones, utilizing data from the Anti-Money Laundering Office (AMLO), reports through the banking sector’s Central Fraud Registry (CFR) system, and police notifications. Each bank processes these lists, including immediate suspension of all accounts associated with identified individuals and considering denials of new account openings. To date, the banking sector—including commercial banks, state-owned banks, and international banks—has acted on over 15,000 names reported to the CFR system since the fourth quarter of 2023, spanning approximately nine months.”

The Bank of Thailand, the Thai Bankers’ Association, and its member banks urge the public to recognize the consequences of allowing others to use their accounts as mule accounts, whether existing or newly opened. Such actions carry criminal penalties under the law and are subject to stringent banking measures, including immediate suspension of all account activities and potential suspension of new account openings. These measures will inevitably impact the financial services available to such individuals.

Bank of Thailand

Thai Bankers’ Association

2 September 2024