Since posting a warning in September 2019 on Facebook and LinkedIn about this business security license scam, we’ve received a steady flow of inquiries about obtaining a “business project security license”. We would like to reiterate that there is no such license requirement under Thai law.
“Thai investors” claim “business security license” required
Apparently, “Thai investors” approach businesses overseas offering to make a sizeable investment. But they claim that the overseas business needed a “business project security license”, or something similar, to be approved to receive the funds. Of course, it costs thousands of dollars, and the Thai investors will put them in touch with a contact. There is no “business project security license” or “foreign investment authorization certificate” or “foreign investment approval license”.
There are laws regulating money transfers from accounts in Thailand to overseas recipients, but that process is between the Thai account holder, their financial institution, and the Bank of Thailand. For certain transactions, there may be KYC checks, but again, that is not the overseas business’s obligation.
Not sure if an inquiry is legitimate? Ask GPS Legal
If you are approached by a potential investor who demands any of these licenses mentioned above, a scam may be afoot. Another red flag is if they require any license or documentation that costs a hefty sum. We urge you to contact local authorities in your country or Thailand’s Anti Money Laundering Office (AMLO) or Technology Crime Suppression Division. Or, let GPS Legal assist. We can help you with reporting any potential fraud to the proper authorities, or we can conduct thorough due diligence if you believe that the parties are well-intentioned but perhaps mis-informed about these licenses. Contact GPS Legal today to discuss the various options available to you.