BANGKOK, Sept. 10 (Xinhua) -- Thailand's central bank said on Thursday that it has joined forces with 11 financial industry associations to escalate measures against illicit use of the financial system under a newly developed framework.
Bank of Thailand governor Vitai Ratanakorn said the initiative aims to keep Thailand's financial system stable, secure, and trusted while shielding the public from harm linked to misuse of financial services.
Under the framework, Vitai said participating parties must set clear governance policies to prevent system misuse and step up scrutiny of high-risk cash transactions. Firms will also deploy technology to proactively flag unusual transactions and build a shared database of high-risk individuals linked to the Central Fraud Registry.
In a statement, the central bank said it will tighten system-wide supervisory standards, expand use of data and technology to detect high-risk transactions, and promote information sharing among institutions to close regulatory loopholes exploited by fraud networks.
Signatories include the Thai Bankers' Association, the Association of International Banks, the Government Financial Institutions Association, the Thai E-Payment Trade Association, the Thai Association of Foreign Exchange and Financial Services, and six associations representing non-bank lenders.
The groups will jointly issue industry-wide anti-money laundering and counter-terrorism financing guidelines and work with community networks to build financial resilience among vulnerable populations.
The central bank also noted that the coordinated push, paired with public financial-literacy campaigns, is intended to reinforce long-term safety, resilience, and confidence in the Southeast Asian nation's financial system while balancing impacts on legitimate customers, market competition, and innovation. ■