The Thai Securities and Exchange Commission (SEC) has clarified that it can exercise its investigative authority in cases related to scam-linked money laundering or financial crimes only if the offences fall under the Securities and Exchange Act.
SEC deputy secretary-general Anek Yooyuen was responding on Friday to recent reports about alleged money laundering through cryptocurrency transactions or connections between certain brokers and scam networks.
Of particular concern have been a series of investigative reports about the acquisition of large stakes in Thai listed companies by parties linked to a Cambodian scam-centre kingpin. The revelations led to the resignation of Deputy Finance Minister Vorapak Tanyawong earlier this week.
Mr Anek said multiple agencies are involved in such matters, and all operations are being carried out by an inter-agency task force. The SEC’s jurisdiction is limited to violations related to securities laws, he said.
In cases where individuals are suspected of holding shares in listed companies through nominee structures, Mr Anek said the Securities and Exchange Act requires any shareholder acquiring more than 5%, 25% or 75% of total voting shares to report and disclose the acquisition. Failure to make such a disclosure violates the law.
His comments addressed public concerns regarding the identity verification of individuals named Ben Smith, Benjamin Mauerberger, and Benjamin Berger, and whether they are the same person or connected to transnational financial crimes or money laundering.
The SEC referred the matter to the Economic Crime Suppression Division of the Royal Thai Police to investigate and determine whether these individuals are linked to any cross-border financial misconduct.
Mr Mauerberger, originally from South Africa, has been linked to numerous questionable transactions. Investigative journalist Tom Wright has detailed how Mr Mauerberger’s Thai wife and the wife of Mr Vorapak were paid in cryptocurrency for shares as part of a secret takeover of Finansia Syrus Securities Plc.
Responding to reports that a listed company and a securities firm might be linked to a money-laundering network, Mr Anek said there was no conclusive evidence at this stage to confirm wrongdoing.
Any further determination would depend on the evidence gathered, he said.
In addition, questions were raised concerning SET-listed Stecon Group Plc leasing office space to a foreign entity suspected of involvement in grey-money operations or scam-related activities.
Mr Anek said such matters may fall under other laws, but are not covered by securities law.
‘If an action violates the Securities and Exchange Act and falls within the SEC’s authority, we will proceed with a full investigation whether or not a complaint is filed,’ he said.
‘However, if the action does not fall under securities law, the SEC has no authority to investigate. Authorities must determine whether the conduct violates other laws, such as consumer protection or criminal law, which are in the jurisdiction of other agencies.’