It became a historic case in Thailand's stock market when the Royal Thai Police integrated efforts with the Anti-Money Laundering Office (AMLO) and the Securities and Exchange Commission (SEC). The collaboration led to a major operation dismantling an international money laundering network.
They seized and froze assets totaling more than 26 billion baht, including Thai stock holdings worth up to 16 billion baht in leading listed companies such as BCP, VGI, and MFC.
The background to this operation stems from an investigation into the networks of Mr. Benjamin and Mr. Jim, a group of online fraudsters and international scammers. The proceeds from their scams were transferred through B.I.C. Bank in Cambodia and concealed via multiple layers of foreign funds in Singapore.
These funds then re-entered Thailand disguised as "foreign investment capital" to acquire and hold shares in major publicly listed companies.
Prof. Dr. Pronong told Thairath Money that the examination of the offenders in this case did not begin only after it became public news; the SEC had been continuously monitoring and scrutinizing this group's activities beforehand.
"Actually, the office had been tracking and investigating prior to the case becoming public. However, the process required time because of complex structural layers involving funds established abroad holding securities." Prof. Dr. Pronong explained.
The SEC Secretary-General further clarified that the crucial point in cases like this is to prove the identity of the "Ultimate Beneficial Owner (UBO)" behind the foreign funds.
The group used VCCs (Variable Capital Companies), which are legally established and regulated by supervisory authorities overseas.
Regarding concerns about the duration of the investigation and legal proceedings, whether "slow or fast," Prof. Dr. Pronong emphasized that the focus should be on the facts, given the high complexity of the case structure, with criminals hiding money through multi-layered foreign funds under multiple regulatory jurisdictions.
In cases where financial flows remain entirely within Thailand, investigations and prosecutions can be swift and straightforward. However, when financial routes cross international borders, the SEC must coordinate and exchange information with foreign regulators through the Multilateral Memorandum of Understanding (MMoU) under the International Organization of Securities Commissions (IOSCO), which requires time to carefully gather comprehensive evidence.
Nevertheless, the SEC has been proactively monitoring this group continuously, cooperating closely with the Royal Thai Police at multiple levels. When any evidence is sufficient, actions are promptly taken, such as the prior indictment of Mr. Jim in the MVP stock case.
A common question from society and investors is whether the presence of grey capital or scammer money laundering in the stock market undermines confidence in Thailand’s stock market.
Prof. Dr. Pronong offered a perspective that challenges this notion, inviting reflection that whenever fraud networks are busted or financial statements distorted, public shock often leads to claims that Thailand’s stock market is losing trust and confidence. However, from the SEC’s viewpoint, it is the opposite.
"We demonstrate that there are fraudsters, and we can bring them to justice. News about asset seizures and such epic cases, once prosecuted, actually enhances Trust & Confidence, showing that no matter how complex the structures, we can trace and reach the UBO."
Therefore, the attempt of grey capital to launder money in the stock market does not mean it can dominate the Thai stock market successfully. Ultimately, when wrongdoing is discovered, the perpetrators will face legal prosecution.
Moreover, from experience attending roadshows and discussions with investors and foreign journalists, no international investors have raised these money laundering cases as a negative issue, because global stock markets also face similar attempts by criminals.
What investors value most is not the absence of fraudsters but the ability of regulators to enforce laws seriously, decisively, and without discrimination when fraud occurs.
Regarding concerns about whether Thailand’s stock market has "loopholes" that allow grey money to launder easily, Prof. Dr. Pronong strongly affirmed that Thailand’s stock market has stringent disclosure requirements, reporting systems under Section 246, and robust Tender Offer regulations under Section 247.
There is also a strict investor screening system through KYC (Know Your Customer) and CDD (Customer Due Diligence) processes conducted by brokerage firms as intermediaries.
She gave an example: if a fraudster directly enters with no legitimate income but submits billions to buy shares, the brokers’ KYC/CDD screening would detect and block it immediately. However, this case involved creating complex multi-layered structures that appeared legal and reasonable on the surface.
Prof. Dr. Pronong highlighted that although foreign structures may hide funds through many layers so initial screening might not detect 100% on the first day, the SEC has retrospective inspection systems and a "suspicion mechanism" that, when abnormalities in shareholding or voting rights are found, allows in-depth investigation to identify and prosecute offenders eventually.
She also cautioned against viewing foreign funds or VCC funds negatively as a whole because most funds operate correctly, honestly, and under good regulatory supervision; only a very small fraction is exploited by criminals as a cover.
Regarding the next steps in prosecution, Prof. Dr. Pronong described a tight integration among three government agencies: AMLO, the Royal Thai Police, and the SEC.
She assured that if evidence and facts indicate additional offenders, there will be no leniency in law enforcement, no harassment, and anyone guilty will face prosecution based on evidence to build investor confidence.
"Grey money may flow in, trying to launder funds in the stock market, but ultimately, legal action will be taken." Prof. Dr. Pronong concluded.
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