AML/CTF Regime in Thailand_AMLO

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AML/CFT REGIME IN
THAILAND
Pol. Col. Seehanat Prayoonrat, Ph.D.
Secretary-General
Anti-Money Laundering Office, Thailand
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Scope of Presentation
1.
The Anti-Money Laundering Act
(AMLA,1999), (NO. 4) 2013
2.
The Counter Terrorism Financing
Act, 2013
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Key Amendments to the AMLA (No. 4)
1. Amend the definition of “predicate offence”,
“asset connected with the commission of an
offence” and “suspicious transaction”.
2. Increase the power of the Anti-Money
Laundering Board.
3. Increase the power of AMLO.
4. Establish the Settling Committee.
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Effective Date of the AMLA (No.4)
• published in the government
gazette on 1 February 2013
• took effect on 2 February 2013
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Money Laundering means…
the process by which criminals
attempt to disguise the true origin
of the proceeds of their criminal
activities so that they appear to
have originated from a legitimate
source
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Measures under AMLA
•
Criminal measure
•
Action against assets associated with the
commission of predicate offences
•
Obligations for financial institutions and persons
engaging in professions under section 16 (1)
and (9)
•
Sanctions for financial institutions and persons
engaging in professions under section 16 (1)
and (9) for nonobservance
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List of Predicate Offences
1. Narcotics
7. Smuggling
2. Sexuality
8. Terrorism
3. Public fraud
9. Illegal gambling
4. Misappropriation or
10. Racketeering
fraud
5. Malfeasance in office or 11. Receiving stolen
judicial office
property
6. Extortion or
12. Counterfeiting
blackmailing
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List of Predicate Offences
13. Violating intellectual
property rights
14. Forgery
19. Piracy
15. Exploitation of natural
resources
16. Murder or grievous bodily
injury
17. Restraining or confining a
person
18. Theft, robbery
21. Trafficking in arms or
arms equipment
22. Election fraud
20. Unfair securities trading
practice
23. Human trafficking
24. Terrorist financing
25. Transnational Organized Crime
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A predicate offence shall include:
“a criminal offence committed in other
country which would have constituted a
predicate offence had it been
committed in the Kingdom.”
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Suspicious transaction means
• a transaction with reasonable grounds to believe
that it is conducted to avoid the application of
the AMLA, or
• a transaction which is connected or possibly
connected with the commission of a predicate
offence or terrorist financing offence,
notwithstanding the transaction being single or
multiple
• an attempt to conduct such a transaction
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Amended Powers of the AML Board
(under section 7 of AMLA (No. 4))
To establish rules and procedures for
assessing risks relating to money laundering
which may arise from transactions
conducted by government agencies or
certain entities not subject to reporting
obligations under AMLA; and recommend
guidelines to prevent such risks.
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Amended Powers of the AMLO
(section 10 of the AMLA (No. 4))
To establish guidelines, supervise,
examine and evaluate the reporting
entities as to their compliance with the
AMLA in accordance with rules,
procedures and guidelines established
by ordinance of the AML Board.
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Settling Committee
In the case where a financial institution or a DNFBP fails to
comply with the AMLA which is punishable by an
imprisonment or a fine.
The Committee consists of the following 5 persons:
1. AMLO Secretary-General;
2. two representatives from government agencies
concerned;
3. one enquiry officer under the Criminal Procedural Code
and
4. one AMLO officer assigned by AMLO SecretaryGeneral as a committee member and secretary.
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Offences for which can be settled
•
failure to report a transaction, to arrange for customer
Identification, to conduct CDD on a customer, to arrange for a
customer to provide facts, to keep records, to observe a
restraint order. (a fine not exceeding five hundred thousand
baht and an additional amount not exceeding five thousand
baht for each day that the violation is not corrected or until the
action is carried out correctly)
•
false statement or fact hiding (an imprisonment of not
exceeding 2 years or a fine from fifty thousand – five hundred
thousand baht or both)
•
failure to give statements, to submit clarification or
document/evidence (an imprisonment of not exceeding one
year or a fine not exceeding twenty thousand baht or both)
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Prescription of
The Offences Which Can Be Settled
For offences for which a fine can be
determined, if no charge has been brought
to the court or no settlement has been made
within 2 years of the date on which the
competent officer found the commission of
the offence and reported the matter to
AMLO Secretary-General or within five
years of the date of the commission of the
offence, the term of prescription shall expire.
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The CTF Act: Key Content
(effective from 2 February 2013)
• Definition of Terrorist act, terrorist financing,
designated person, asset freezing;
• Protection for persons acting in good faith
• Sanctions for nonobservance
• Sanctions for TF offense
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Terrorist Act means:
• any act which constitutes an offence related to
terrorism under the Penal Code; or
• any act which constitutes an offence within the
scope of international conventions and treaties
related to terrorism to which Thailand is a party
or has acceded;
• whether such act is committed inside or outside
the Kingdom.
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Designated person means:
• a person, group of person, legal persons
or entities listed as a designated person
pursuant to a resolution of or notification
issued under UNSC; or
• a person, group of persons, legal persons
or entities who were designated by the
court order under the CTF Act.
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Reporting Entity means:
reporting entities under the AML law,
which are financial institutions and
persons engaging in professions under
section 16.
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Asset freezing means:
• prohibition of making transfer, selling,
moving or disposition or conversion,
utilization; or
• dealing in any way with such assets which
would result in changing in amount, value,
quantity, location or character of the
assets.
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Protection for persons acting in good
faith (section 8):
Any person shall be excluded from liability
for a loss or claim resulting from asset
freezing where such act is carried out in
good faith, unless gross negligence is
proven.
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Sanctions for nonobservance
• Under section 14 paragraph one: where a designated
person, FI official, company employee responsible for
conduct of transactions or person holding the assets of a
designated person
• fails to freeze the assets of the designated person or of a
person acting on behalf of, or at the direction of the
designated person, or of an undertaking controlled by
such a person; or fails to inform AMLO of the asset frozen
• shall be liable to an imprisonment not exceeding three
years or a fine not exceeding three hundred thousand
baht or both.
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Under section 14 paragraph two,
where a reporting entity;
• fails to freeze the assets of the designated
person or of a person acting on behalf of, or at
the direction of the designated person, or of an
undertaking controlled by such a person; or fails
to inform AMLO of the asset frozen
• shall be liable to a fine not exceeding one million
baht as well as a daily fine of ten thousand baht
until rectification is made.
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Under section 14 paragraph three,
• where violation under paragraph two has
resulted from the direction or action of a person
or failure to give instructions or to perform the
duty of a director, manager, or a person
responsible for the operations of the juristic
person,
• such person shall be liable to a term of
imprisonment not exceeding three years or a
fine not exceeding three hundred thousand baht
or both.
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Under section 15 paragraph one,
where a reporting entity;
• fails to inform AMLO of a customer or former
customer who is on the list of designated
persons; or who is or was a transaction
counterparty of such a person,
• shall be liable to a fine not exceeding five
hundred thousand baht and a daily fine of five
thousand baht until rectification is made.
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Under section 15 paragraph two,
• where violation under paragraph one has
resulted from the direction or action of a person
or failure to give instructions or to perform the
duty of a director, manager, or a person
responsible for the operations of the juristic
person,
• such person shall be liable to a term of
imprisonment not exceeding one year or a fine
not exceeding one hundred thousand baht or
both.
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Terrorist financing means the provision or
collection of funds or assets or any
undertaking:
(1) Knowing that the beneficial person is a designated
person; or
(2) For the benefits whatsoever of a designated person or
person/entity involved in a terrorist act(s).
• It shall be deemed that a terrorist financing offence had
been committed although a terrorist act did not occur, or
the funds or assets was not utilized or no action was
taken in connection with a terrorist act.
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Sanctions for TF Offence
• A natural person who commits TF offence
shall be liable to an imprisonment of two to
ten years or a fine from forty thousand to
two hundred thousand baht or both.
• A legal person who commits TF offence
shall be liable to a fine from five hundred
thousand to two million baht.
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Sanctions for TF Offence
• where the offence by a legal person
resulted from the direction or action of a
person or failure to give instructions or to
perform the duty of a director, manager, or
a person responsible for the operations of
the legal person, such a person is liable to
an imprisonment from two to ten years or a
fine from forty thousand to two hundred
thousand baht or both.
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TF offence
is a
predicate offence
under AML law.
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Impact of the New Law
Positive Impact:
Thai authorities are better equipped against
ML/FT
Negative Impact:
Increased cost for businesses and increased
time for innocent people conducting
transactions.
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End of Presentation
Thank You

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