Anti-money laundering/SET collaboration against illegal trading

Editorial staff

The Anti-Money Laundering Office (AMLO), the Securities and Exchange Commission (SEC), and The Stock Exchange of Thailand (SET) have strengthened their collaboration to fight against illegal securities trading activities under the Securities and Exchange Act and the Anti-money Laundering Act.

This collaboration is aimed to dismantle economic criminal activities, particularly those related to securities trading, and to enhance the law enforcement capabilities of each agency as well as their joint operations. These efforts are expected to boost investor confidence in the Thai capital market.

Deputy Prime Minister and Minister of Finance Pichai Chunhavajira presided as the honorary witness at the signing ceremony of the Memorandum of Understanding (MoU) for cooperation among the three agencies at the SET building.

AMLO chairman Chatchai Phromlert and AMLO secretary-general Theppasu Bavornchotidara emphasized AMLO’s pivotal role in capital market oversight as a regulator of SET’s securities member companies designated to report various transactions and as an enforcement agency against predicate offenses in the capital market. For cases involving violations of the Securities and Exchange Act, including stock manipulation and insider trading.

AMLO will work closely with the SEC, which directly regulates these securities companies and provides AMLO with detailed information on such offenses. AMLO also receives information from SET, which acts as the first-line inspector to detect suspicious trading activities. AMLO then takes over the investigation of financial transactions to facilitate asset-related legal actions, all within the framework of anti-money laundering laws.

In the past, regulatory agencies were perceived by investors as slow in their work, which hindered the effective prevention of crimes in the capital market and affected the image of the Thai capital market. This perception was partly due to the complexity of offenses and the large number of transactions involved. All relevant agencies, including AMLO, have had to carefully consider their actions within legal frameworks to avoid impacting the business sector.

MoU signing assured the public that future securities violations will be met with swift and coordinated responses from relevant authorities. The MoU will also reduce work process redundancy and enhance the handover process between operator and law enforcement agencies to ensure faster and more efficient action within their respective legal boundaries.

SEC chairman professor Wisit Wisitsora-at said that the capital market is a hub for fundraising from both domestic and international investors. Economic crimes in this sector not only cause direct harm to investors but also have broader implications for the country’s overall economy. Over the past few years, several major cases have surfaced in the capital market, involving significant financial damages and widespread impacts.

Upon taking his position, professor Wisit aimed to enhance capital market confidence through improved governance and more efficient as well as timely law enforcement against offenders. He expressed satisfaction with this three-agency collaboration, viewing it as a significant milestone in narrowing operational gaps and increasing law enforcement effectiveness.

SEC secretary-general professor Pornanong Budsaratragoon said that the SEC has been collaborating with AMLO and SET through bilateral agreements on coordination and information sharing for law enforcement purposes.

This new trilateral MoU was expected to deepen cooperation in information exchange, coordination, and the potential formation of joint task forces when necessary. The goal is to improve prevention and enforcement efforts against unfair securities trading practices, embezzlement, fraud, and financial misconduct under the Securities and Exchange Act B.E. 2535 (1992) considered predicate offenses under the Anti-Money Laundering Act that impact investor confidence and economic development.

SET chairman adjunct professor Kitipong Urapeepatanapong said that the MoU among AMLO, the SEC, and SET aimed to address the need for swift action against offenders. The agreement focused on streamlining work processes, including facilitating seamless information sharing and eliminating redundancies in data collection among law enforcement agencies to shorten the time required for investigation and enforcement processes.

Additionally, leveraging AMLO’s legal processes to swiftly prosecute offenders in cases with substantial social and investor impact can help restore investor confidence and deter potential wrongdoers.

SET president Pakorn Peetathawatchai said that recent incidents involving listed companies had shaken domestic and international investor confidence. SET recognizes the importance of collaboration among agencies within the justice system to deter and swiftly enforce legal actions against offenders. Such efforts are crucial in restoring and strengthening investor confidence in the Thai capital market.