Thailand Cracks Down on Financial Crimes: A Look at the Anti-Money Laundering Act and Its Implications
Background
- Enacted in March 1999 to combat drug trafficking and other criminal activities (Thailand Government Gazette)
- Initially targeted funds or property obtained from illegal drug trade
- Amendments in March 2008 expanded the list of targeted criminal offenses
Targeted Criminal Offenses
The current Act covers funds or property obtained from:
- Drug trafficking
- Prostitution and related sexual offenses
- Public fraud
- Fraud involving financial institutions
- Abuse of power by government officials
- Extortion
- Trade involving contraband items
- Gambling offenses
Penalties for Violations
- Criminal offense to transfer, convert or receive transfer of funds or property with intent to conceal their origin
- Violators face imprisonment for up to 10 years and a fine of up to 200,000 baht
Recent Amendments
- Increased investigative powers against corruption among government officials
- Allowed for seizure of suspected property without a warrant
- Return of property only if sufficient proof provided it’s unrelated to crimes or money laundering
Reporting Requirements for Financial Institutions
The Act requires financial institutions to report:
- All cash transactions exceeding 2 million baht
- Property transactions above 5 million baht
Traveler’s Declaration
AMLO, the Anti-Money Laundering Prevention and Suppression Office, requires travelers entering or leaving Thailand to declare:
- Amount of currency in their possession
Penalties for Non-Compliance
- Failure to comply: fines of up to 300,000 baht
- Filing a false report: fines of up to 500,000 baht and imprisonment of up to 2 years
Challenges and Continued Evolution
- Decrease in transactions subject to mandatory reporting indicating money laundering attempts being divided into smaller, diversified amounts or conducted through alternative methods
- The Anti-Money Laundering Act remains crucial in the Thai government’s efforts to combat financial crimes.