House AML Committee questions Webull on KYC after loophole found to block illicit funds

The House Committee on Prevention and Suppression of Money Laundering and Narcotics has moved to inspect the customer identification and verification standards (KYC/CDD) of Webull Securities (Thailand) Co., Ltd. after receiving complaints that the online securities trading platform's system may have been used as a channel to park and move funds linked to financial crime

An “urgent” letter dated June 2, 2026, invited Mr. Chonladet Khemaratana, Chief Executive Officer of Webull Securities (Thailand) Co., Ltd., to explain before the committee on June 11, 2026, at Parliament House, providing information on customer screening, anti-money-laundering measures, and the company's risk-control measures

Investigation issue: KYC loophole may affect confidence in Thailand's capital market

The committee views the issue as more than a technical flaw by an investment platform provider; it could also affect the image and credibility of Thailand's capital market overall if a securities firm becomes a loophole in the financial system used by transnational criminal networks

Tracing a money-laundering network through investment platforms

The investigation began with an operation by the Central Investigation Bureau (CIB), working with the Anti-Online Scam Operation Center (ACSC), which expanded a case involving a scam against a retired civil servant in Pathum Thani, causing losses of more than 1.4 million baht and later revealing a network of more than 30 victims

Investigators found that the gang had an initial verifiable cash flow of more than 100 million baht per month and could cause total losses of as much as 1 billion baht per month. The offenders evolved from using ordinary "mule accounts" to using the capital market structure as a place to park and move illicit funds

Officials found that the gang used a method known as “Poipet Circumvention,” in which Thai mule-account holders were taken across the border to stay in Poipet, Cambodia, for several weeks to scan their faces for identity verification and conduct financial transactions on behalf of the real account owners, thereby evading Thai financial institutions' security measures

The operation led to the arrest of 8 suspects, including 7 Thai nationals and 1 Chinese national, and searches of a safe house in a luxury condominium in the Huai Khwang area and business premises used as a front for the network's activities

In addition, one of the alleged ringleaders told investigators that the proceeds from the scam were transferred through a stock-trading app without any actual investment in securities, drawing the attention of the public and many investors

Webull says it is not involved, fixes the loophole within 1 week

After the news broke, Webull Securities (Thailand) clarified that the company had no involvement in the money-laundering operation and confirmed that its KYC system operates in line with standards set by regulators

Mr. Chonladet Khemaratana said the company has registered capital of 1 billion baht and is a subsidiary of Webull Corporation, which is listed on the US Nasdaq Stock Market, so it must strictly comply with international regulatory standards

The company said it rushed to plug the loophole and strengthen security measures within just 1 week after discovering the problem, with key measures including:

• Discontinued 100% real-time cash withdrawals and extended the transaction review period
• Introduced an AI Scoring Model to analyze customer behavior and detect abnormal transactions
• Added Enhanced Due Diligence (EDD) for high-risk accounts
• Used a screening database for high-risk individuals and suspicious accounts at the global level
• Reviewed past activity and found about 40-50 mule accounts from a customer base of more than 200,000, or less than 0.03% of all customers; these accounts have been closed and suspended

Thai SEC to step up industry-wide safeguards

The case has also become an important catalyst for capital market regulators to urgently review financial-crime prevention standards across the entire industry

Ms. Pornong Busratrakul, Secretary-General of the Securities and Exchange Commission (SEC), previously said the agency is preparing to push a new set of cybercrime and anti-money-laundering measures to close loopholes in the investor identity-verification process

Key measures under review include requiring deposits and withdrawals to go through verified bank accounts, upgrading real-time KYC systems, and increasing penalties for operators that neglect risk controls and become channels for illicit funds