By Thai Rath Money
WITH Thailand now facing a risk of becoming a global money laundering hub due to multiple loopholes that facilitate the flow of grey money this inevitably impacts the economy and national confidence with ordinary Thais directly and indirectly vulnerable to this gray money cycle.
The following are the key ways the general public is affected by grey money that scammers are moving to Thailand:
1/ Losing money to online scams
Despite 2025 not having ended, the Technology Crime Suppression Centre revealed that as of Dec. 3 total loss from online crimes amounted to over 23.668 billion baht with an average of 899 reports being filed each day. This statistic further reflects the diverse range of fraud Thais face, particularly scams, call centre gangs, and investment scams, which pose a higher risk than other forms of fraud.
2/ Unwittingly opening a mule account?
When laundering large sums of money, criminal gangs must employ more complex financial routes. In the past scammers have tricked people into opening bank accounts in exchange for hundreds or thousands of baht. Initially, it might seem worthwhile, as the money can be obtained in a short period of time. But when the account becomes involved in fraud, it becomes a full-blown mule account, and the account owner is also liable.
3/ Account locked and money frozen unexpectedly
This was a major news story in September this year as many people reported that their accounts including, temporary funds, had been locked and frozen, due to their involvement with mule accounts. Several merchants said they could not identify their customers and thus did not know the money they received came from mule accounts.
While one would think those that are not mule accounts would be easily unfrozen, this was not the case with some people having to wait three months for credit or other suspensions to be lifted. As the number of victims increased, the Bank of Thailand (BOT) and related agencies expedited efforts to intercept mule accounts and speed up unlocking accounts.
4/ Grey money flows into “overpriced” real estate, land and condos
According to the International Monetary Fund (IMF), money laundering can create a real estate bubble because grey money seeks a place to park and houses, condos and land are easy hiding places for these illegal funds.
Most recently, on Dec. 2, the Anti-Money Laundering Office (AMLO) reported the seizure of assets from transnational scammers (Chen Zhi, Kok An and Ben Smith) worth over 10 billion baht. These assets included cash in bank accounts, land and condos.
To go by these cases there are many more instances of money laundering via real estate, potentially driving up house, condo and land prices. This could also impact ordinary people seeking to buy a home.
5/ It is still difficult for honest people to use their own accounts
It must be acknowledged that Thailand’s payment system is faster than many countries in the world, but this has also led to scammers being even faster in transferring money. The government is trying to introduce more measures and criteria to make transfers more costly. For example, banks are now required to issue warnings before transferring, limit the amount per transaction, face scans required for identity verification when transferring large amounts, and many more.
On the one hand, it is good to have multiple layers of warnings, and multiple steps. On the other hand, these complicated procedures create difficulties for ordinary people, especially those unfamiliar with technology and not well-versed with financial transactions. For example, face scans can be effective for identity verification, but not everyone can always go to a branch to verify their identity when the application experiences problems. Underscoring this is the case of many Thais trying to register for government welfare having to flock to government agencies to do so.
6/ Taxpayer funds are being used to fill loopholes instead of development
In less than a year, the damage totalled 23 billion baht, with over 300,000 online cases. Calculate how much money has been spent on handling these cases, particularly investigation process, prosecution and victim rehabilitation. This requires a significant budget, and these are indirect costs borne by the public. The government’s failure to address financial crimes could prove to be a significant cost to the country.
7/ The country’s image would be tarnished, and investors retreat
If Thailand is perceived as a money laundering hub, it will impact credibility, and foreign investors may avoid investing in Thailand. When investment does not flow in, job creation and economic growth are shaken. Not only will the stock market slow down, but the opportunities for Thai people to expand their business will also dwindle.
Finally, money laundering may seem distant, but its impact is closer than we think. Thais will have to pay for lost opportunities if the government does not fully prioritise addressing this issue.
CAPTIONS:
Top and Front Page – Representative images of money laundering. Photos – Thai Rath
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