Crackdown on Capital Market Scammers: SEC Focuses on Identifying ‘Real Shareholders’ SET Affirms Market Is Not a ‘Money Laundering Hub’
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Following the case where the Anti-Money Laundering Office (AMLO) seized assets linked to a scammer network and froze shares of Bangchak Corporation Public Company Limited (BCP) valued at up to 6 billion baht, investigations have expanded to examine seven additional listed companies.
This development has drawn close attention to the Thai capital market regarding its potential risk as a money laundering channel. Recently, the Securities and Exchange Commission (SEC) provided updates on the investigation, emphasizing coordination with regulatory agencies both domestically and internationally, as well as close collaboration with AMLO to track suspicious financial transactions and shareholdings.
The SEC’s current investigation focuses on identifying the "real shareholders," clarifying that the aim is not to audit the listed companies’ business operations directly but to verify whether shareholders have accurately reported their securities holdings. If violations are found, legal actions will follow.
Executives of the Stock Exchange of Thailand (SET) affirm that the Thai stock market is not a "money laundering hub" but acknowledge that the negative news has affected the market’s image and investor confidence. The SET is fully cooperating with relevant authorities and underscores its stringent monitoring system, which scrutinizes over 500,000 to 600,000 transactions daily for irregularities.
However, it is assessed that the freezing of BCP shares will not significantly impact overall trading liquidity.
SEC Collaborates with Agencies to Identify 'Real Shareholders,' Emphasizes Focus on Individuals, Not Companies
Pranong Bussaratakul, Secretary-General of the Securities and Exchange Commission (SEC), disclosed updates on the investigation into financial flows and shareholdings related to the criminal scam network. She stated that the SEC has begun coordinating with relevant regulatory bodies both domestically and abroad, which is a standard procedure in such investigations.
Additionally, the SEC works closely with the Anti-Money Laundering Office (AMLO), agreeing on data disclosure protocols to ensure clarity during the investigation. Information requests are made as necessary, focusing solely on suspicious areas.
. Thawatchai Pitayaso, Deputy Secretary-General of the SEC, . explained that the primary objective of the investigation is to verify shareholders’ accurate reporting of securities holdings. This is not a direct examination of the listed companies’ business operations, to avoid confusion.
A key issue is to identify the "ultimate beneficiaries," as legally, those obligated to report shareholdings are the true owners or transaction actors.
If nominee shareholders or corporate structures are used as facades, disclosures must extend to the individual ultimate owners. Claims that these are merely "shells" or floating entities are not acceptable.
If false reporting or failure to comply with Tender Offer rules is found, corrections must be made. Violations may incur penalties, including imprisonment and fines under applicable laws. Currently, the SEC has authority to file charges and refer cases to investigators for prosecution.
SET Responds Firmly, Affirms Thai Stock Market Is Not a “Money Laundering Hub”
Assadej Kongsiri, Director and Managing Director of the Stock Exchange of Thailand (SET), commented on the AMLO’s asset freeze related to offenses by a scammer network, including shares of Bangchak Corporation Public Company Limited (BCP) valued over 6 billion baht.
He described the government’s measures as commendable for protecting the public and investors, noting that the SET is fully cooperating by providing transaction data to relevant authorities to prosecute offenders.
However, Assadej acknowledged that negative news involving a few listed companies among over 800 has somewhat affected the market’s image and investor confidence.
He cautioned that labeling the Thai stock market as a "money laundering hub" might be an exaggerated claim.
Regarding concerns over liquidity and trading of BCP shares, preliminary checks suggest the 6 billion baht worth of frozen shares had not been actively traded recently.
Therefore, the freeze is unlikely to have a significant impact on trading volume or share prices. BCP has issued statements and established a committee to manage the situation and reassure investors.
On long-term regulatory measures, Assadej emphasized that the SET has a rigorous transaction monitoring system, reviewing over 500,000 to 600,000 daily transactions to detect anomalies.
He reiterated full cooperation with authorities.
Assadej addressed reports that six other listed companies (seven including BCP) might be linked or under investigation by commissions and government agencies regarding money laundering.
He said he is aware of inquiries about these seven companies but, as of now, no official requests or documents have been sent to the SET for information on these firms.
Nonetheless, he confirmed that if necessary or upon request, the SET is fully prepared to support and assist government agencies in investigations and prosecutions.
Regarding concerns about delays or opacity in disclosures by listed companies involved in such cases, Assadej elaborated that companies’ fundamental duty is to disclose financial performance, risks, and operations per regulations.
From reviews of over 800 companies, disclosures have been proper. However, private transactions of shareholders are not directly the listed companies’ responsibility to verify or disclose.
If trading rule violations or prohibited trading behaviors occur, the SET will investigate and sanction immediately. Currently, no abnormalities have been detected under the SET’s jurisdiction. For money laundering offenses under other agencies, the SET stands ready to provide information to prevent harm.
Thai Stocks Face Concerns as Index Drops 10.2%; Fed Interest Rate and Tax-Advantaged Funds Expected to Provide Support
Dr. Saraphol Tulayasathien, Deputy Managing Director and Head of Corporate Strategy and Strategic Projects, Stock Exchange of Thailand (SET), shared an overview of the Thai stock market in November, noting a degree of concern as the market index fell 4% during the month, resulting in a year-to-date return decline of 10.2%. Trading value averaged around 35 billion baht per day, down from this year’s average of 41 billion baht and lower than last year.
The main downward pressure stemmed from disappointing Thai economic data and corporate earnings. The third quarter is typically a low season for business, and export sectors had already accelerated in the first two quarters due to tariff concerns.
Foreign capital flows showed early signs of inflows into emerging markets, but foreign investors remained net sellers in Thai stocks, with net outflows of over 12.5 billion baht in November and approximately 130 billion baht year-to-date.
Looking ahead to the year-end, Dr. Saraphol highlighted positive factors that might support the market, expecting fourth-quarter economic figures to improve following government stimulus measures such as the "Khon La Khrueng" co-payment scheme and tourism promotion initiatives for primary and secondary cities, noting early signs of increased consumer spending.
Seasonal factors in December include buying from tax-advantaged mutual funds, which typically inject funds into the market during this period, as well as anticipated clarity on the Thailand Investment Savings Account (TISA) policy, which could positively influence long-term investor decisions.
However, attention remains on the upcoming U.S. Federal Reserve meeting, as markets rapidly shift toward expectations of interest rate cuts amid U.S. economic indicators signaling risks. Actual rate reductions would likely be positive, followed by close monitoring of the Monetary Policy Committee (MPC) meeting in Thailand.
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