Thailand’s Anti-Money Laundering Act: Fighting Financial Crimes

Enacted in 1999 under royal decree B.E. 2542, Thailand’s Anti-Money Laundering Act is a significant legislation designed to combat money laundering and related financial crimes in the country. This act was initiated by His Majesty King Bhumibol Adulyadej, who granted exemptions to restrictive constitutional provisions.

Key Provisions

The Act includes provisions for reporting suspicious transactions and identification procedures for financial institutions and certain professions. Here are some of its significant aspects:

• Predicate Offenses

  • The Act outlines various predicate offenses, acts that are believed to be associated with money laundering, including offenses relating to narcotics, sexual offenses, public fraud, misappropriation, malfeasance, extortion, smuggling, terrorism, gambling, forgery, unlawful use of natural resources, and murder.

• Transaction Reporting

  • Financial institutions and specified professions are mandated to report transactions exceeding certain thresholds (BAHT 500,000 for natural persons and BAHT 2 million for legal entities and intermediaries).
  • Transactions deemed suspicious, regardless of their monetary value, also need to be reported.

• Customer Due Diligence

  • Financial institutions and associated professions must take customer due diligence measures to prevent money laundering and maintain these records for a specified period (5 years for individuals and 5-10 years for legal entities).

The Anti-Money Laundering Board

The Act also created the Anti-Money Laundering Board to oversee and implement measures against money laundering. This board consists of government officials and experts and has the power to:

• Issue guidelines
• Propose measures
• Assess risks associated with financial transactions related to money laundering

Amendments and Continuous Evolution

Over the years, several amendments have been made to expand the list of predicate offenses and enhance the Act’s scope. As of now, the Thai Anti-Money Laundering Act continues to evolve, providing a robust framework to curb financial crimes within the country. Some of the key amendments include:

• The expansion of the list of predicate offenses to include cybercrime, computer-related offenses, and economic sabotage.
• The requirement for real estate brokers and dealers to perform customer due diligence and report suspicious transactions.

Furthermore, these measures are periodically reviewed and updated to keep up with emerging threats and changing financial landscapes to protect Thailand’s economy and maintain international compliance.