Financial Crime World

Thailand Strengthens Anti-Money Laundering Laws with New Guidelines for Businesses

Bangkok, THAILAND - April 2024

In a significant move to combat money laundering in the country, Thailand’s Anti-Money Laundering Office (AMLO) has issued new guidelines for businesses classified as “reporting entities” under the Anti-Money Laundering Act. These guidelines aim to strengthen anti-money laundering laws and prevent illicit financial activities.

Key Sectors Affected by the Guidelines

The new guidelines target specific sectors, including:

  • Digital asset businesses
  • Payment service providers
  • Designated professions such as:
    • Insurance companies
    • Real estate brokerages

The guidelines provide recommended customer due diligence practices for reporting entities, including:

  • Digital asset exchanges
  • Brokers
  • Dealers
  • Advisory services
  • Fund managers
  • Custodial wallet providers
  • Token portal service providers
  • Money transfer agent businesses

Requirements for Businesses

To comply with the guidelines, businesses must:

  1. Implement an effective anti-money laundering policy
  2. Conduct risk assessments
  3. Identify and verify customers and ultimate beneficial owners (UBOs)
  4. Monitor transactions
  5. Report suspicious activities

Compliance and Penalties

While the guidelines themselves are not considered law, they serve as a manual for business audits and provide practical guidance on regulatory requirements outlined in the Ministerial Regulation on Customer Due Diligence. The AMLO has made it clear that businesses must diligently consider the practices outlined in the guidelines when designing or reviewing their customer due diligence processes.

Businesses classified as reporting entities must comply with the guidelines to avoid penalties and reputational damage.