Bangkok: The Securities and Exchange Commission (SEC) is upgrading its protection against shady capital activities with new regulations effective August 16. These include strengthening KYC/CDD (Know Your Customer/Collateral Disposal) guidelines for brokers, tightening controls to prevent the opening of fraudulent accounts, and preparing to issue qualification requirements for heads of internal auditors of companies applying for initial public offerings (IPOs) with the SEC, aiming to close loopholes for fraud.
According to Thai News Agency, Mr. Anek Yoo-yin, Deputy Secretary-General and Spokesperson of the Securities and Exchange Commission (SEC), revealed at the "SEC Media Briefing, June 2026" that the SEC is preparing guidelines for securities businesses (brokers) to strengthen their Know Your Customer (KYC) and Collective Transaction (CDD) processes. For example, in the case of legal entities, brokers will need to verify the true owner, the registered capital, the appropriateness of the requested trading limit, and the source of investment funds. The SEC has been discussing with brokers to streamline the verification mechanisms. These guidelines will come into effect on August 16, 2026.
The evolution of money laundering and "mock account" scams has become increasingly prevalent. Initially, these scams targeted banks, where perpetrators tricked victims into transferring funds and then quickly withdrew them. Following increased bank scrutiny, the practice expanded to the cryptocurrency market and is now increasingly appearing in the stock market. The rapid account opening capabilities of brokers pose a significant loophole, potentially compromising the due diligence and verification processes of the client. This has prompted the SEC (Securities and Exchange Commission of Thailand) to adjust its regulatory approach. The SEC has intensified measures to address loopholes in "mock account" scams in the capital and digital asset markets. To date, over 58,006 cryptocurrency "mock account" accounts have been blocked. From January to May 2026, the SEC handled 4,307 reports and provided consultations regarding investment scams, reflecting increased public awareness of fraudulent activities. Consulting the SEC can help mitigate potential losses.
"The KYC/CDD verification mechanism used by the SEC for securities businesses involves several parts, such as guidelines and on-site inspections to ensure that brokerage firms are complying with the regulations correctly. If not, they will be penalized with a fine of up to 300,000 baht per case, and a fine of 10,000 baht per day until the issue is rectified."
Furthermore, the SEC (Securities and Exchange Commission of Thailand) is preparing to issue new regulations to enhance the supervision of internal auditors for listed companies seeking permission to offer securities for initial public offerings (IPOs). Specifically, the regulations will require all companies to have a chief internal auditor and will outline the qualifications of the chief internal auditor. This is aimed at preventing fraud and inappropriate conduct, and boosting confidence in the Thai capital market, following the discovery of several cases of irregular transactions, conflicts of interest, and fraud within listed companies over the past 2-3 years.
The eligibility criteria, which are being prepared for public consultation (Hearing), consist of two main parts:
1. Qualifications and Knowledge: Individuals appointed as Head of Internal Audit must possess internationally recognized professional certifications such as Certified Internal Auditor (CIA) or Internal Audit Practitioner (IAP), which are international standards.
2. Must have at least 5 years of work experience, especially at least 3 years in internal auditing. Initially, the Capital Market Supervisory Board (CMSB) has approved the principle, and the SEC will expedite coordination with the Stock Exchange of Thailand (SET) to revise the regulations for supervising listed companies. Public consultations with relevant agencies will be held by June or mid-July 2026. The new regulations will require disclosure of the qualifications and experience of the Head of Information Advisory (IA) in both the Filing form and the 56-1 One Report (Annual Report) to allow investors to verify the information.