Thailand to Fine and Imprison Providers of “Mule” Bank Accounts

The Digital Economy and Society Minister assured the Senate on Monday that the government is intensifying its war on call-center gangs by boosting fines for owners and providers of “mule” bank accounts.

DEA Minister Prasert Chanthararuangthong was responding to a question from Senator Maj Gen Osoth Phawilai regarding the government’s efforts to prevent and suppress call-center gangs. The senator remarked that criminal activity appeared to be increasing.

Prasert responded that the DEA ministry and the government are aware of call-center gangs’ intensified efforts to deceive the public. The government revealed that the gangs are now employing cutting-edge technology to fool their victims.

Prasert stated that the government is aware that call-center gangs are generating economic damage of between 70 million and 100 million baht per day. He stated that the government has been coordinating efforts from all relevant agencies to combat the gangs.

For example, Prasert stated that the Bank of Thailand is working with the Thai Bankers Association to suspend and close mule bank accounts, as well as accounts associated with them. A “mule” is someone who transports or moves illegally acquired money on behalf of others.

He also stated that the Anti-Money Laundering Office (AMLO) has been working together to trace transactions and seize the gangs’ bank accounts and assets.

According to Prasert, the Securities and Exchange Commission has been working together to take action against those who misled the public with stock market investment offerings, while the Department of Special Investigation assists with cybercrime investigations.

In addition, the Office of the National Broadcasting and Telecommunications Commission will inspect and suspend SIM cards used by contact center gangs.

To combat mule accounts, Prasert announced that a new executive directive on the prevention and suppression of technology crimes will go into force on March 17.

The new regulation will punish anyone who allow others to use their bank accounts as mule accounts with a potential three-year jail term and/or a fine of 300,000 baht. Those who arrange and offer mule accounts for the gangs will face a potential five-year prison sentence and/or a 500,000 baht fine, Prasert noted.

The DEA minister stated that the government is also conducting public awareness efforts to raise knowledge of the gangs using various social media platforms such as Facebook, Line, Instagram, and X (previously Twitter).

He stated that the DEA ministry has also been directed to work with Cambodia to combat gangs operating near the Cambodian border.

Prasert stated that the government will enforce the Personal Data Protection Act (PDPA) as a short-term remedy to prevent gangs from obtaining people’s personal information.

In the medium run, the government would also use artificial intelligence to detect the gangs’ illicit operations.

In the long run, Prasert stated that the government would strengthen all relevant legislation, including the Computer Crime Act and the PDPA, to better safeguard the people.

On Monday, two Cabinet members did not appear to answer senators’ queries. They were Deputy Interior Minister Chada Thaised, who was due to answer a question regarding drought relief measures, and Public Health Minister Cholnan Srikwaew, who was asked about the universal healthcare system. The two agreed to offer explanations to the Senate on April 1.

Mule bank accounts are financial accounts used for transferring money between parties, often for illicit purposes. These accounts are typically opened by individuals for the sole purpose of receiving and forwarding funds without the account holder’s knowledge.

They are commonly employed in money laundering schemes to obscure the original source of the funds. Mule accounts can be linked to various criminal activities, including fraud, identity theft, and drug trafficking.

It is crucial to be vigilant and report any suspicious account activity to prevent being unknowingly involved in illegal financial transactions.

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