Thailand strengthens measures against corporate fraud
From January 1, new measures will be in place requiring thorough checks against the list of high-risk individuals for all business registrations
One of Thailand’s most pressing economic crime issues is fraudsters exploiting corporate registrations to gain public trust and conduct deceptive activities. These criminals normally use registered entities to open bank accounts, facilitating financial transactions while evading scrutiny.
In response, the Department of Business Development (DBD), which oversees business registrations and promotes governance, has stepped up efforts to combat fraudulent corporate accounts. In collaboration with relevant agencies, the DBD is implementing measures to deter and prosecute offenders.
Oramon Sapthaweetham, DBD director-general, said the department has integrated high-risk individuals flagged for money laundering (HR-03 list) into its systems in collaboration with the Anti-Money Laundering Office (AMLO).
“This directive aims to block fraudsters from exploiting corporate registrations at the outset,” Oramon said.
New directives now mandate that applications for partnerships or company registrations, whether made in person or via e-registrations, undergo checks against AMLO’s HR-03 list.
This ensures that managers, partners or directors listed in the registration requests are not associated with financial crimes, reinforcing the integrity of Thailand’s business environment.
If a registrar finds an individual applying for corporate registration on the HR-03 list, the registration process will be delayed. The applicant will be required to present themselves at the relevant registration office – such as the DBD’s Central Business Registration Division, or regional or provincial commerce offices – to confirm their identity.
Applicants will also be required to provide valid identification, including a national ID card, government official ID, state enterprise employee card, alien ID, passport or equivalent document. All documents must be current and not expired. If the individual fails to appear, the registrar has the right to reject the application. This regulation goes into effect on January 1, 2025.
Meanwhile, Oramon said that the DBD was enhancing its coordination with law enforcement agencies, such as the Central Investigation Bureau, to link data and conduct thorough inspections. These efforts aim to safeguard Thailand’s economy and citizens from the adverse effects of fraudulent activities.
