Bangkok: 11 Arrested in Major E-Money Crackdown
Bangkok—Thai police arrested 11 executives and staff members on Friday, dismantling five illegal e-money firms operating in Bangkok and two neighboring provinces. The firms, with an estimated turnover of one billion baht (approximately US$XX million), were targeted in coordinated raids by the Economic Crime Suppression Division (ECD).
The meticulously planned operation followed an extensive investigation revealing the companies operated outside the Bank of Thailand’s regulatory framework. ECD officers, armed with court warrants, raided firms in Nakhon Pathom, Samut Sakhon, and Bangkok, seizing six computers and other evidence.
According to Pol Maj Gen Thatphum Jaruprat, ECD commander, the firms facilitated international purchases via online platforms. These platforms required users to establish memberships and open electronic wallets. The illegality stemmed from users pre-loading e-wallets via bank accounts linked to the unauthorized firms.
Pol Maj Gen Thatphum explained this practice circumvented regulations, undermining the national economy and creating a potential conduit for money laundering, thus threatening financial stability and security.
The Bank of Thailand’s 2017 Payment System Act mandates strict oversight of foreign-exchange e-money businesses to protect the public and maintain financial system integrity. The five companies violated this act by operating without licenses.
The arrests demonstrate the Thai government’s commitment to combating illicit financial activities. The 11 individuals face charges of providing electronic money services without permission, a serious offense under Thai law. They were transferred to the ECD’s Sub-division 5 for legal proceedings. The investigation continues to uncover the full extent of the illegal operations and identify other involved individuals or entities.
This operation highlights the importance of regulating the evolving digital finance landscape. As e-commerce and digital transactions grow, authorities worldwide balance innovation with robust oversight to prevent criminal exploitation. The Thai authorities' swift action protects the nation’s financial system integrity.
