Financial Crime World

Thailand’s Legal Battle Against Money Laundering and Terrorist Financing: A Look at the AMLA and FST

Thailand’s commitment to combating financial crimes, such as money laundering and terrorist financing, is evident through the enactment of two key pieces of legislation:

    • Enacted: Anti-Money Laundering Act B.E.2542 (1999) (AMLA)

    • Sets out Thailand’s legal framework for managing, monitoring, and investigating anti-money laundering activities

    • Applies to individuals, legal entities, and organizations, irrespective of location

    • More recently: Prevention and Suppression of Financial Support to Terrorism and the Proliferation of Weapons of Mass Destruction Act B.E.2559 (2016) (FST)

    • Focuses on counter-terrorism financing

  2. Prohibited Activities

    • Money laundering: transferring, accepting, or converting assets if connected to a predicate offense or to conceal/disguise assets’ true nature
    • Criminal process must be proven, regardless of whether an individual conducts the predicate offense under AMLA or not

  3. Penalties and Penalties: A Double-Edged Sword

    • AMLA legislation:
      • Individuals: imprisonment of 1 to 10 years, fines of THB 20,000 to THB 100,000
      • Juristic persons: fines of THB 20,000 to THB 1,000,000 and possible imprisonment for some executives and directors
    • FST imposes stricter penalties: imprisonment for 1 to 10 years and fines of THB 20,000 to THB 200,000 for co-conspirators as well

  4. Extra-Territorial Application

    • Thai laws extend their application beyond the country’s borders, targeting individuals, legal entities, and organizations involved in money laundering or terrorist financing irrespective of their business location

  5. Additional Regulations and Obligations

    • Reporting and registration obligations:
      • Financial institutions must report certain transactions to the Anti-Money Laundering Office (AMLO)
      • Those possessing the property of determined persons: must suspend handling or notify AMLO of suspected terrorism financing or involvement with weapons of mass destruction
    • Businesses/individuals failure to comply: penalties include fines and imprisonment

  6. Enforcement Authorities and Contact

    • Principal Thai authorities responsible for enforcing AMLA and FST: Anti-Money Laundering Office (AMLO)
    • Contact details for AMLO: 422, Phayathai Road, Wang Mai Sub-district, Pathumwan District, Bangkok, 10330 Phone: +66 221 936 00 Website: https://www.amlo.go.th/index.php/th/