Bangkok: The Bank of Thailand (BOT) is advocating for the prompt unfreezing of accounts belonging to innocent individuals, aiming to restore merchants’ trust in accepting money transfers.
According to Thai News Agency, the BOT emphasized the urgency for all related agencies to establish clear guidelines by the end of September for unlocking accounts not associated with money mule activities. This initiative is crucial for ensuring that merchants can confidently process transactions.
Ms. Daranee Saeju, Assistant Governor of the Payment Systems Supervision Group at BOT, highlighted the ongoing issue where villagers face transaction suspensions and credit limit freezes, despite their accounts remaining operational. In September 2015 alone, approximately 10,000 suspicious accounts were detected weekly. She noted that recent stringent measures targeting account trails, including those involving e-money and cryptocurrencies, have inadvertently impacted some innocent parties. In response, the BOT is engaging in discussions with relevant agencies to finalize conditions by the end of September.
The BOT, in collaboration with banks, police, and the Technology Crime Suppression Division (TCSD), is committed to swiftly unlocking accounts for innocent individuals, particularly those with small credit limits or low-value transactions. The primary goal is to foster understanding and trust among merchants, encouraging them to accept transfers. Historically, the incidence of money transfer rejections has been low. Following investigations, account unlocking is expected to occur within 2-3 hours to a day.
Efforts to combat mule accounts have been ongoing. The BOT has consulted with various entities to expedite resolutions and minimize unintended consequences for innocent individuals. Their approach includes seizing or suspending fraudulent transactions, balancing victim loss prevention with public access to mobile banking. For those who suspect account mishandling, the BOT provides a hotline (1441) for account review. Despite these measures, only 11 out of 100 calls successfully result in unfreezing.
The BOT and TCSD have focused on enhancing the efficiency of tracing fraudulent money trails to maximize victim restitution. This intensified scrutiny has, however, affected innocent parties involved in money trails. Mule accounts often engage multiple banks simultaneously seeking release, but authorities maintain control with comprehensive information.
To mitigate the impact on innocent individuals, the BOT and TCSD, along with the Anti-Money Laundering Office (AMLO), have refined their procedures, reducing the transaction suspension period. The BOT aims to review and process information from the TCSD swiftly, ensuring timely transaction releases. Affected parties will be promptly informed about suspensions, ensuring transparency and a standardized approach.
In instances of financial fraud, account freezes necessitate police and AMLO involvement to establish guilt. This differs from the aforementioned transaction suspensions, with relevant agencies working to minimize impacts on innocents while ensuring victim support.