Crime CRYPTO goes
BANGKOK: Wary of the underworld’s increasing use of cryptocurrency such as Bitcoin to cover its money trail, Thai authorities have begun focusing more attention on digital currency as its popularity among criminals soars.
The country’s Narcotics Suppression Bureau (NSB) has begun training its men on digital currency and the probable impact it can have in the fight against drug syndicates.
“If all drug traders shift to using Bitcoin for drug dealing, our work to detect their money transactions will (only) become harder. We do not have much knowledge about Bitcoin at the moment, so it is very challenging for us,” NSB chief, Lt Gen Sommai Kongvisaisuk, told Bernama here recently. He said prior to this, NSB had only faced one case involving the use of cryptocurrency, but he anticipates more local drug syndicates following in the footsteps of their international counterparts in embracing the use of digital currency. Although drug syndicates in Thailand have yet to activiely use cryptocurrency, the same cannot be said for call centre scam syndicates which have adopted the currency and made it part of their operations.
According to the Royal Thai Police, such syndicates have invested at least 90% or 20 million baht (RM2.6 million) of the money siphoned from victims into Bitcoin since December last year.
Gen Thanisak Teerasawat, who heads the country’s task force on electronic fraud, recently said investment in Bitcoin by those syndicates was part of their efforts to launder their money and avoid detection by the authorities.
Last week, the Bank of Thailand had asked financial institutions not to get involved in cryptocurrency transactions. It said cryptocurrencies were not legal tender in Thailand and could be used in illegal activities such as money laundering or supporting terrorism.
Bank Negara Malaysia governor, Tan Sri Muhammad Ibrahim, last November said anyone converting cryptocurrencies into fiat money would be regarded as “reporting institutions” under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) beginning this year.
The move was aimed at “preventing the abuse of the system for criminal and unlawful activities, and ensuring the stability and integrity of the financial system”, and Malaysia’s move is in step with what Australia, China and Japan had recently done.
Under AMLA, all reporting institutions will be required to undertake preventive measures to prevent their institutions from being used as a conduit for money laundering and terrorism financing activities.