Why Allowing Thailand to Become a Global Money Laundering Hub Affects the Lives and Finances of Thai People

Thailand is currently facing a "gray capital" infiltrating its economy, ranging from online gambling gangs to scammer networks. The country risks becoming a global money laundering hub due to multiple loopholes allowing illicit funds to flow in. This issue impacts the national economy and trust, causing Thai people to suffer direct and indirect harm from this "gray money cycle." What are the forms of impact?

1. Losing money to online scams

In less than a year in 2025, the Anti-Online Crime Center (AOC) reported total online fraud losses exceeding 23.668 billion baht (as of 3 Dec). On average, 899 cases are reported daily. These statistics highlight that Thai people face many types of fraud, especially from scammers and call center gangs posing as investment opportunities, with losses higher than other fraud types.

2. Becoming an unwitting "mule account"?

To launder large sums, criminals require more complex financial routes. Previously, they lured people to open bank accounts on their behalf in exchange for a few hundred to thousand baht. Initially, it might seem worthwhile for a quick gain, but once the account is involved in fraud and becomes a full-fledged mule account, the account owner suffers consequences such as:

• Having other accounts under the same name frozen
• Facing legal charges including imprisonment and fines of hundreds of thousands of baht
• Being held liable if victims file lawsuits for damages

3. Having accounts "frozen or funds seized" without warning

This became major news in September 2025 when many people reported their accounts were "locked or suspended" and funds temporarily seized due to links with mule accounts. Many affected were businesses unaware of their customers’ identities and did not know they had received money from mule accounts.

At first glance, if cases are legitimate and unrelated to mule accounts, unfreezing funds should be straightforward—but it is not. This issue became significant, with some waiting up to three months to lift restrictions. As the number of victims grew, the Bank of Thailand and related agencies expedited measures to detect mule accounts and speed up account unlocking more effectively.

4. Gray money flowing into real estate, causing "overpriced" land and condos

IMF data indicate money laundering can create bubbles in real estate, as illicit funds seek outlets. Houses, condos, and land become easy hiding places for illegal money. On 2 Dec 2025, the Anti-Money Laundering Office (AMLO) reported seizing assets worth over 10 billion baht from a transnational scammer network (Chen Zhi, Ge An, Ben Smith), including cash, land, and condos.

Cases like these suggest many more instances in Thailand where gray money laundered through real estate may inflate housing, condo, and land prices, negatively affecting ordinary buyers seeking homes.

5. Honest people find it difficult to use their own bank accounts

Thailand’s payment system is faster than many countries, but this enables scammers to "deceive quickly and transfer funds swiftly." Authorities have added steps and criteria to encourage caution before transfers, such as banks issuing warnings before sending money, capping transfer amounts per transaction, requiring facial recognition for high-value transfers, among others.

While these multiple warnings help prevent fraud, the "complex procedures" also inconvenience ordinary people, especially those unfamiliar with technology. Genuine users face difficulties conducting transactions, such as needing facial scans, which require branch visits when apps malfunction. This was evident when many Thais queued at branches to register for government welfare programs.

6. Tax money must "plug holes" instead of funding development

With damages exceeding 23 billion baht in less than a year and over 300,000 online cases, consider the funds spent managing these cases. This excludes investigation, prosecution, and victim rehabilitation costs, which demand large budgets. These become indirect costs borne by citizens. The state's failure to resolve financial crime issues could become a massive economic burden.

7. Country's image suffers, driving away investors

If Thailand is perceived as a money laundering hub, its credibility will decline. Foreign investors may avoid investing, reducing job creation and economic growth. This leads not only to a sluggish stock market but also fewer opportunities for domestic expansion.

Ultimately, money laundering may seem distant, but its impacts are closer than expected. Thai people pay an opportunity cost unless the government fully prioritizes addressing this problem.

Sources: AOC, Bank of Thailand, IMF, AMLO.

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