Thailand’s Anti-Money Laundering Law: Cracking Down on Illicit Activities and Corruption
In response to escalating illegal activities involving massive financial transactions, Thailand’s legislative body passed the Anti-Money Laundering Act in March 1999. The comprehensive law was designed to combat various criminal offenses, including:
- Drug trafficking
- Corruption
- Fraud
- Prostitution
- Abuse of power by government officials
- Extortion
- Trade involving contraband items
- Gambling offenses
Background
Initially, the Thai government proposed a money laundering act to address the transfer of funds and property generated from the illegal narcotics trade, as part of the 1988 Convention against Illegal Traffic in Narcotic Drugs and Psycho-toxic Substances. Over time, the list of targeted criminal offenses expanded.
Key Provisions
The primary offense under the Act involves transferring, converting, or receiving funds or properties derived from any of the cited crimes with the intention of concealing their origins. Penalties for breaking this law include:
- Imprisonment for up to ten years
- A fine of up to 200,000 baht for non-government officials
- Doubled fines for government officials following the March 2008 amendments
##powers and Investigations
Enforcement officials are granted extensive powers to investigate banking transactions and seize money and property connected to any of the listed criminal offenses. To reclaim seized property, the owner must provide substantial evidence that it is unrelated to criminal activities or money laundering offenses.
Reporting Requirements
Key provisions of the Act require financial institutions to report all cash transactions exceeding 2 million baht and property transactions worth 5 million baht. They are also required to ask for detailed records in such cases. Balancing customer confidentiality and compliance with the Act is the discretion of the financial institution.
Traveler Reporting Requirements
AMLO has also implemented regulations stating that all travelers entering or leaving Thailand must declare the amount of currency they possess. This helps authorities investigate potential violations. Penalties for failing to comply include a fine of up to 300,000 baht and imprisonment for non-compliance. False reports are punishable by a fine of up to 500,000 baht and imprisonment for up to two years.