The Need and compliance issues of Thailand's regime on anti-money laundering and combating the financing of terrorism

Abstract

These days, the legal jargon “Anti-Money Laundering/Combating the Financing of Terrorism” (“AML-CFT”) has baffled ordinary laymen so much so that they have no clues what the phrase actually stands for. Its usage has gained widespread circulation following the terrorist attacks on the US in September 2001. And yet its meaning is understood only in limited circle of mostly diplomats and legal experts. Thai authorities have started introducing this phrase more frequently to the private sector—financial industry in particular—after the passage of the Anti-Money Laundering Act 1999. Awareness within the private sector has since shown appreciable increase whereas the level of public awareness has remained much to be desired. In this research paper earnest attempts have been made to present a composite of information about the AML-CFT legal framework. Roughly the paper can be divided into two parts—one part dealing with the background information on the subject of money laundering and terrorist financing and related issues, international efforts at combating ML and FT, international legal instruments, methodologies, international standards and elements of an effective AML-CFT framework. These are described in Chapters I to III, and another part focusing on Thailand’s AML-CFT regime as a whole. In the latter part, the paper traces the history of development of Thailand’s AML-CFT regime, starting from the enactment of the AMLA to the assessment of Thailand’s AML-CFT legal system by various independent international assessment teams. Then compliance issues are discussed in relation to the AMLA provisions against the FATF Recommendations. Points of recommendations of the assessment teams to address the deficiencies in Thailand’s AML laws are highlighted in order that the recommendations are duly taken care of. At the same time, the paper ventures to make its own comments on the merits or otherwise of the assessment teams’ points of view. Where necessary the paper attempts to defend the validity or capability of Thailand’s AML-CFT legal framework against the critical views expressed by the assessment teams in respect of the particular issue or issues. From among the assessors’ views some selective crucial issues are singled out for separate discussion because these crucial issues do deserve a special treatment on account of their critical or serious nature of criticism. Some issues are even found to be quite controversial. Then the paper concludes with its own specific suggestions for improvement of Thailand’s AML-CFT legal framework. These matters are extensively covered in Chapters IV to X. ii It may be observed that in Thailand there still is less number of studies and researches on this subject-matter at the international level. From the personal experiences of the writer, who has frequently attended numerous seminars of international organizations in various countries, the writer has found out that Thailand still lacks expertise that could serve as a basis for understanding of other countries and international organizations towards Thailand. Therefore, this thesis is written in English in order to enhance the academic value and to contribute to the true benefit of further studies or implementation. At the same time, it is aimed at strengthening the level of international cooperation in understanding and developing an overall AML-CFT system in Thailand acceptable to the international community.