Thailand Lags Behind in Beneficial Ownership Reporting, Says UN Report

Transparency Crucial in Combating Financial Crimes

A report by the United Nations Office on Drugs and Crime (UNODC) has revealed that Thailand is one of the most secretive countries in Southeast Asia when it comes to disclosing beneficial ownership information. The lack of transparency hampers efforts to combat financial crimes, including money laundering and corruption.

Thailand’s Lack of Transparency

According to the report, Thailand does not have a mechanism to record or report beneficial ownership information, making it difficult for law enforcement agencies and financial institutions to detect suspicious transactions. Only basic company information is available to the public.

Regional Variations in Beneficial Ownership Disclosure

While some countries in Southeast Asia have made progress in implementing beneficial ownership registries, others remain secretive about company ownership.

• Malaysia Moves to Introduce Beneficial Ownership Disclosure: In contrast, Malaysia has taken steps to make beneficial ownership disclosure mandatory for most companies. Under new guidelines, companies are required to keep information on their owners at their offices and provide it to law enforcement if necessary.
• Indonesia’s Full-Fledged Registry: Indonesia has a full-fledged registry that records and reports beneficial ownership information.
• Myanmar Requires Disclosure in Extractive Sector: Myanmar requires companies in the extractive sector to disclose their real owners.

Countries That Remain Secretive

The Philippines and Cambodia are among the most secretive countries in the region, with no mechanism to record or report beneficial ownership information.

Philippines’ Incomplete Disclosure

The Philippine Security and Exchange Commission requires all SEC-registered stock and non-stock domestic corporations to disclose ownership, but the information is not publicly available.

Call for Verification

Experts agree that many governments should do more to regularly check whether the information provided to them is accurate in order to prevent stolen identity cases where innocent people may be used in lieu of real owners. Verification is a big challenge that many Southeast Asian countries face, according to UNODC’s Cornelia Koertl.

Global Efforts

Countries such as the UK have also faced challenges with verification and are working to improve their company registries. After FinCEN Files reporters highlighted flaws in the UK business registry, the government announced reforms to clamp down on fraud.