The SEC, in the course of a routine inspection of FSS's operations conducted under the risk-based approach (RBA) between April and May 2025, found issues relating to FSS’s KYC/CDD systems. Subsequently, news reports emerged regarding transactions involving companies listed on the Stock Exchange of Thailand (SET) that may be linked to technology crimes (scammers) or money laundering. This issue has attracted public attention, and relevant government agencies have been monitoring actions relating to the prevention and suppression of such activities. Accordingly, the SEC took these matters into consideration and conducted further examination of the relevant operational systems. It was found that during the period from 1 April 2024 to 21 December 2025, FSS, as a licensed securities brokerage business operator, had deficiencies in its KYC/CDD systems, including the following:

          (1) FSS failed to conduct KYC/CDD to identify the ultimate beneficial owner (UBO), namely the natural person who ultimately controlled the customers. In addition, FSS’s KYC/CDD measures were incomplete with respect to identifying the ultimate shareholders of customers that were foreign juristic persons.

          (2) FSS failed to verify additional information to assess the reasonableness of such requests in cases where customers sought significant increases in credit limits from previously approved levels.

          (3) FSS failed to conduct enhanced KYC/CDD or implement intensified monitoring of customers in cases where customers engaged in transactions inconsistent with the information or documentary evidence relating to their financial capability, such as where customers conducted high-value transactions involving margin deposits, receipt of securities, or share subscription transactions on the SET that were inconsistent with the financial status presented to FSS, despite the availability of information indicating that such customers might lack sufficient financial capacity to conduct such transactions. For example, in the case where customers were foreign juristic persons with low registered capital, lacked audited financial statements from reliable auditors, or had no clearly reliable sources of income. In addition, FSS failed to adequately assess the foregoing transactional activities for the purpose of submitting Suspicious Transaction Reports (STR) to the Anti-Money Laundering Office (AMLO).

The above deficiencies in FSS’ KYC/CDD systems constituted a violation of Section 113, subject to penalties under Section 282 of the SEA. The SEC has therefore filed a criminal complaint against FSS with the ECD for further legal proceedings.

Mr. Anek Yooyuen, Deputy Secretary-General and Spokesperson of the SEC, stated: “One of the key measures to curb illicit funds is to require capital market business operators, including securities businesses, derivatives businesses, and digital asset businesses, to have systems that meet standards for customer identification and verification (KYC/CDD), including the reporting of suspicious transactions in order to ascertain facts relating to customers, as capital market business operators serve as the first line of defense in customer screening. Therefore, the SEC places importance on enhancing the operational standards of business operators, as well as strictly enforcing the law against business operators. In the case of FSS, upon finding deficiencies in its KYC/CDD systems and potential involvement in violations of other laws, the SEC has filed a criminal complaint with the ECD.”

Following the criminal complaint filed by the SEC, the criminal enforcement process will proceed with investigation by the inquiry official, prosecution by the public prosecutor, and adjudication by the court of justice, respectively. In this regard, the SEC will monitor the progress of the legal proceedings and fully cooperate with relevant agencies to support legal enforcement under the SEA after the criminal complaint has been filed.