Bangkok Post – The government is targeting fraud through entity registrations

High-risk applicants will be deferred

PUBLISHED: January 2, 2025 at 4:00 AM

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The government links applicants for legal entity registrations to data on individuals identified as being at high risk of money laundering, with the aim of reducing economic crime. As of yesterday, applications with names on the risk list, which require valid supporting documents, are postponed.

Deputy government spokesperson Karom Phonphonklang said yesterday that fraud involving scammers who misuse legal entity registrations to deceive the public – taking advantage of companies’ credibility and operational flexibility – is a form of economic crime that the government must urgently tackle.

Such scammers often use legal entity registration documents to open bank accounts, allowing them to receive money while evading banks’ financial control.

This type of fraud has caused significant damage to Thailand’s economic system and compromised the security of individual assets. It is an urgent issue that the government, working with various agencies, is trying to prevent and suppress, Mr. Karom said.

The Department of Business Development (DBD) recently integrated data on individuals at high risk of money laundering (HR-03) with the Anti-Money Laundering Office (Amlo).

Mr. Karom explains that if a manager or board member listed in a legal entity registration application matches a name on the HR-03 list, the registration will be deferred.

The person must then provide valid supporting documents. If these are not provided, the application will be rejected. This measure came into effect yesterday.

“This directive is an additional measure to tackle fraud at its roots and prevent fraudsters from abusing the registration process for legal entities,” he said.

“Integrating data sharing and field inspections with agencies such as the Central Bureau of Investigation (CIB) will help curb these activities and protect Thailand’s economy and its citizens.”

Auramon Supthaweethum, director general of the DBD, said the department recently linked Amlo’s HR-03 data through the Anti-Online Scam Operation Center.

The HR-03 list includes individuals identified as being at high risk for money laundering and requiring close monitoring.

In addition, the department issued an order specifying criteria for the registration of partnerships and limited liability companies involving persons on the Amlo list.

This order allows registrars to verify legal entity registration applications submitted in person or online. Registrars are required to verify that the names on an application match those on Amlo’s HR-03 list.

If a name on the HR-03 list is found on an application, the individual must verify their identity by providing valid documents such as an identification card, government official card, state-owned company employee card, alien certificate or passport.

If the applicant does not appear or does not submit the documents, the Registrar reserves the right to refuse the request.