The Anti-Money Laundering Office (AMLO), the Stock Exchange of Thailand (SET), and the Securities and Exchange Commission (SEC) are advancing a new agreement to combat illicit activities in the securities markets.
Key takeaways
- The AMLO along with the SEC and the SET has signed a new memorandum of understanding to fight illegal securities trading activities.
- The collaboration between the organizations will primarily aim to coordinate efforts to prevent and combat violations in securities trading.
- The initiative marks the beginning of an integrated action among the three agencies to provide more effective, swift, and rigorous legal actions against offenders.
The three entities signed a memorandum of understanding to cooperate in the prevention of crimes in securities trading.
The collaboration between the organizations will primarily aim to coordinate efforts to prevent and combat violations in securities trading.
Kittipong Urapeepatanapong, President of the SET, emphasized the importance of taking measures against offenders, particularly by minimizing redundancy in the workflows of all relevant law enforcement agencies.
He added that the use of AMLO’s legal procedures for prosecuting offenders in cases that significantly impact society and investors should help restore investor confidence.
The initiative marks the beginning of an integrated action among the three agencies to provide more effective, swift, and rigorous legal actions against offenders.
The President of the SEC, Wisit Wisitsora-at, explained that economic crimes not only cause direct harm to investors but also generate negative impacts on national economies.
Wisit added that one of the key factors to improving confidence in the capital market is maintaining good governance, which requires clear and timely regulatory mechanisms.
Finally, the initiative will seek to improve the prevention and enforcement of regulations against unfair practices in securities trading.
It will also aim to combat embezzlement, fraud, and financial misconduct under the Securities and Exchange Act B.E. 2535 (1992).
The main measures to fight illegal trading taken by the SET
The Securities Exchange of Thailand was established under the Securities Exchange of Thailand Act, B.E. 2517 (1974), marking the beginning of the modern era of the Thai stock market. The SET operates on a non-profit basis, aiming to promote savings and long-term capital fundraising for the country’s economic development. Over the years, the SET has grown significantly, becoming a central hub for trading listed securities and providing related services.
The Stock Exchange of Thailand (SET) has implemented several robust measures to combat illegal trading and ensure market integrity. These include stringent monitoring systems that use advanced technology to detect irregular trading patterns and potential market manipulations.
The SET also enforces strict compliance with regulations, requiring all market participants to adhere to ethical trading practices. To enhance transparency, the SET mandates timely disclosure of information by listed companies, which is crucial for investors to make informed decisions.
To combat illegal activities and enhance market integrity, Thai regulators have implemented several measures.
The SET has proposed measures to strengthen trading supervision, including automatic trading halts, dynamic price bands, and enhanced market surveillance.
These measures aim to prevent inappropriate trading behaviors, reduce price fluctuations, and promote transparency and fairness for all investors: they are part of a broader framework designed to maintain the integrity of the financial market and safeguard against illegal trading practices.
Public consultations have been conducted to gather feedback and further improve these regulations.
