AMLO, SEC, and SET strengthen collaboration to combat illegal securities trading activities

BANGKOK, August 26, 2024 - 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 aims 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.

SET Chairman Adjunct Professor Kitipong Urapeepatanapong said that the MOU among the AMLO, the SEC, and SET aims to address the need for swift action against offenders. The agreement focuses 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.

Today’s signing of the MOU marks a remarkable collaboration to prevent and suppress securities-related offenses, setting the stage for more integrated efforts among justice-related agencies to take swifter and stronger legal action against offenders.

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.

Today’s MOU signing assures 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 stated 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 revealed that the SEC has been collaborating with the AMLO and SET through bilateral agreements on coordination and information sharing for law enforcement purposes. This new trilateral MOU is 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 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. SET has continuously engaged in discussions and cooperation with the SEC, AMLO, and other relevant agencies. This ongoing collaboration has culminated in the signing of the MOU among the three organizations today, aimed at coordinating efforts to prevent and combat securities trading violations. This MOU marks a significant step forward in enhancing the oversight of the Thai capital market. SET is confident that the integrated efforts of these involved agencies will contribute to the sustainable strengthening of the Thai capital market.