Legal Guidance on Document and Financial Fraud in Thailand

Overview

Fraud is a widespread issue in both personal and business transactions worldwide, and Thailand is no exception. During the COVID-19 pandemic, fraudulent schemes involving gloves and Personal Protective Equipment (PPE) notably increased. These offenses often resemble breaches of contract or embezzlement and can impact both individuals and public interests.

Professional legal guidance is essential for victims and defendants to navigate Thailand’s regulatory and criminal framework surrounding fraud.

Our service include:

Fraud assessment and legal guidance
Private and public fraud handling
Civil and criminal case support
Evidence review and complaint filing
Due diligence for risk prevention
Court representation and appeals

Legal Definition of Fraud

Under Section 341 of the Thai Criminal Code, fraud (or cheating) is defined as:

“Any individual who dishonestly misleads another by asserting false statements or concealing facts that ought to be disclosed, and, through such deceit, acquires property from the defrauded person or a third party, or induces the defrauded person or a third party to create, revoke, or destroy a legal document, is guilty of committing the offense of cheating and fraud. Punishment shall not exceed three years of imprisonment, a fine of no more than six thousand Baht, or both.”

Illustration: Soliciting investment funds with no intention to return money or share profits constitutes fraud under Section 341.

Public Fraud

Fraud committed against the public is addressed under Section 343:

“If the offense under Section 341 is committed by assertion of a falsehood to the public or by concealment of facts which should be revealed to the public, the offender shall be punished with imprisonment not exceeding five years, a fine not exceeding ten thousand Baht, or both.”

Example: A company selling products without intending to deliver them, or submitting false documentation to government agencies, is guilty of public fraud. Public fraud cases can proceed even if victims withdraw complaints, reflecting the serious societal impact of such offenses.

Statute of Limitations

Private fraud (Section 341): Victims have three months from discovery of the fraud and the perpetrator’s identity to file a complaint.
Public fraud (Section 343): No time limitation; prosecution proceeds independently of victim participation.

Prompt action is critical, and professional legal assistance is strongly advised.

Civil Remedies

Victims of fraud may pursue civil action under the Securities and Exchange Act, which allows for:

Suspension from securities trading for up to five years
Restrictions from serving as executive or director in a securities company for up to ten years
Reimbursement of investigative expenses
Compensation equivalent to losses suffered

Penalties and Legal Protections

Fraud offenders in Thailand may face:

Forfeiture of property
Fines
Imprisonment (typically 3–7 years)
Confinement

Bail and provisional release may be granted based on:

Credibility of the applicant
Strength of evidence
Severity of the offense

Bail can be denied if the suspect may interfere with investigations, conceal evidence, or flee.

Defendants’ Rights:

Right to appeal through the Court of Appeal and Supreme Court
Inadmissibility of illegally obtained evidence
Right to legal counsel at all stages, including investigations

Fraud Targeting Tourists

Fraud aimed at tourists is prevalent in real estate, holiday services, and business transactions, where victims may pay for goods or services that are never delivered. While international insurance or commercial code fraud is less frequent, foreign jurisdictional issues may arise in some cases.

Summary and Legal Support

BASE Law Firm manages numerous fraud cases each year, focusing on meticulous documentation and careful collection of witness testimony to achieve favorable outcomes. Key points include:

Private fraud (Section 341): Complaints must be filed within three months of discovery.
Public fraud (Section 343): No time restrictions; cases proceed regardless of victim participation.

Additionally, our team offers Due Diligence services for businesses and private transactions to prevent fraud and ensure compliance with Thai law. We provide expert guidance to safeguard interests, pursue justice efficiently, and navigate the complexities of document and financial fraud cases in Thailand.