The banking industry is set to implement a ban on financial transactions involving mule accounts in March, in compliance with the Bank of Thailand's (BoT) directive.
Speaking after a meeting of the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) on Wednesday, Payong Srivanich, chairman of the Thai Bankers' Association (TBA), said banks are enhancing their operational and security systems to block money transactions across all five risk levels of mule accounts.
The industry expects to fully comply with the central bank's enforcement measures by next month, he said.
Under the regulations, money transfers to three additional categories of mule accounts -- soft grey, dark brown and soft brown -- are prohibited as of March 2025.
Money transfers from dark brown and soft brown mule accounts are also prohibited, while individuals previously linked to mule accounts are banned from opening new deposit accounts. Enforcement of these rules also comes into effect next month.
The regulator plans to prohibit the opening of new corporate mule accounts within February.
Mr Payong said all relevant parties, including entities in both the government and private sectors, are working together to comprehensively combat financial crime, targeting criminal organisations and working to prevent the use of mule accounts.
As part of these efforts, banks have been blocking money transfers to dark grey and black accounts, which are classified as high-risk, since last month, in accordance with the central bank's directive.
The TBA established the Central Fraud Registry to share mule account data among banks, and banks have already closed more than 1.8 million mule accounts, he said.
"The government is committed to tackling financial scams from upstream to downstream. This solution involves collaboration among regulatory agencies, banks, telecommunications companies, digital platforms, e-wallet service providers and consumers," said Mr Payong. "The private sector supports the government's decision to suspend power supply to certain border areas near Myanmar to help curb scam operations. The move should enhance security and build confidence for all parties."
He said banks will comply with the imminent rule on shared responsibility among financial institutions, telecom operators and mobile service users, following the cabinet's approval of an emergency decree amendment addressing mobile financial scams.
"Through comprehensive collaboration, we aim to effectively prevent and combat financial scams and cyber-risks. The banking sector is committed to working with all relevant parties to fight financial crime and enhancing security systems," said Mr Payong.