Thailand Moves to Enhance Anti-Money Laundering Safeguards


The intergovernmental Financial Action Task Force (FATF) has put Thailand on its "dark grey list" of countries, claiming that it is a high risk and non-cooperative jurisdiction which has failed to meet international standards in fighting money laundering.  Practical implications of being on the FATF's list include possible impediments to international trade and an increased cost of capital for Thai businesses.

To address these concerns, two measures have recently been unanimously approved "in principle" by the Thai House, which would amend Thailand's Anti Money Laundering Act and introduce a new bill on anti-terrorist financing.  Under the two measures, the Anti-Money Laundering Office (AMLO) will be authorized to compile lists of terrorists, take legal action against them and their financial supporters and block their transactions.  No further action will be taken on these two measures until the next legislative session, however, as the most recent session was cancelled on June 19 following a royal decree from the Prime Minister.  

Watch this space for further updates.