Bangkok: The Treasury Department is preparing to shift the responsibility of regulating pyramid schemes to the Ministry of Justice, aiming to strengthen legal measures against such fraudulent activities by amending existing laws to include punishments for key figures involved in these schemes.

According to Thai News Agency, Mr. Chulaphan Amornvivat, Deputy Minister of Finance, stated that the initiative follows a directive from the Prime Minister, who has called for a collaborative review of the Royal Decree on Fraudulent Loans to the Public B.E. 2527 (1984). The current legislation, which has been in place for over four decades, is considered outdated in addressing the complexities of modern fraud, particularly in the context of digital advancements in fundraising and member recruitment. The proposed amendments aim to enhance the law’s effectiveness in combating these evolving fraudulent practices.

Discussions among several relevant agencies have led to the proposal that the Ministry of Justice take over t
he supervision of the Royal Decree on Fraudulent Loans to the People B.E. 2527. This transition is deemed appropriate given the Ministry’s direct mandate over such offenses. Under Sections 341 and 343, pyramid schemes are classified as criminal offenses, carrying a maximum penalty of 10 years imprisonment, along with potential fines. The discussions also highlighted the necessity of prosecuting not only the leaders and executives of pyramid schemes but also the main networks responsible for organizing these fraudulent activities, including entities like ‘The Icon Group.’ The process of amending the law will continue through multiple discussions to ensure comprehensive and effective legal reforms.