Thailand On Money-Laundering Blacklist

[KeyserSoze01]

The headline and story are not correct. Thailand is NOT on the blacklist, only Iran and North Korea are, but on another list, known as the grey list.

Perhaps so, although being lumped into the same category as Nigeria will bring unwanted scrutiny to financial transactions to / from Thailand.

Unwanted, excessive scrutiny is already hampering our business, here in Th. We have had corporate PayPal and Moneybookers accounts blocked without prior warning - at least in one case in violation with their own terms and conditions.

The ridiculous obstacles seemingly randomly imposed by PayPal and Moneybookers - apparently because of Thailand's status as a safe haven for money laundering and the financing of terrorism - seriously hurts our import and export business. Because we exclusively sell and provide services online, we can operate our business virtually anywhere on the globe and we may soon be forced to move elsewhere.

It is not only Thailand. I know of incidents where expats in Costa Rica have had their bank accounts frozen without warning. The account holder then has to prove where the funds came from in their accounts prior to them being unfrozen. Lots of money laundering and offshore shell corporations operate in CR. The US has been putting pressure on the Costa Rican government to tighten controls on money flow. All part of the the US tracking down undeclared wealth and earnings so they can tax it, along with the obligatory penalties, interest and subsequent criminal charges.

[theblether]

The reach of the US authorities is going too far......it is verging on becoming oppressive ( probably already is ) to it's citizens.

It used to be the case that the authorities had to have proof of wrong doing, now they are firmly placing the burden of proof on many innocent people and causing serious financial distress.

It's Orwellian.

[Babcock]

this would have a huge impact on Thailand, most if all money brought in from the eastern bloc is being cleaned !, sold a house once and they paid 30 million THB in 500 Euro notes, bank didnt even ask any questions !,

if they do crack down, you will see alot of these people leave, as well as the Costa Del sol lot whom have made thier home here, as it is so easy to launder money

ah well

It's late but what's happening with house prices and rents?

They seem all of a sudden to be rising exponentially.

Incidentally I posted this before but only yards from where the iranian blew himself up some weeks back I was waiting behind a lady at the K bank as she withdrew money from the ATM.

I was curious as she touched the screen to count the zeros of the money she was taking out; 20,000 baht. She was so slow. Not uncommon.

I then happened to glance at the balance which was 100,500,000 baht. More than 2 million quid in her deposit account.

A developer we know has just rebuilt her old house and she was offered 26000000 baht for a 3 bedroom house by a farang off Sukhumvit soi 71 but instead now she wants to rent out for 100,000 per month.

A year or two back over in Silom there were no farang and now...

[OzMick]

How sweet, the happy few have no intention to change anything. Any government is powerless. With appointed senators, crooked police, crooked military, stealing royalists and industrials there will never be any need for anti money laundering laws. Imagine when the likes of Chuwit could no longer laundry the money made from prostitution, police man who cannot afford to pay the petrol for their Benz need to put the casino money in the bank and generals need to store their kick backs fro weapon sales. The country would fall apart.

In the end it is not a problem either, after all countries like Israel, the UK and the US laundry money in the billions themselves for covert operations. Oliver North was the best example. So don;t worry about it. It is the pot telling the kettle that it is black.

" Any government is powerless" Really? Why? What is stopping the current government from passing banking regulations, except perhaps they foresee the need to pay the red-shirt rabble again?

[notmyself]

thats a sad news for Thailand , lets hope this government will act in a serious way . ( yeah I know I can dream on this) But knowing the country I already hear the comments ... There are no terrorism in Thailand , no money laundering , no prostitution , no corruption ( did I forget anything ?)

spot on with all these "no's"

Never a reduction in tourism?

[Reasonableman]

... Getting so much better all the time... (Beatles)

thats a sad news for Thailand , lets hope this government will act in a serious way . ( yeah I know I can dream on this) But knowing the country I already hear the comments ... There are no terrorism in Thailand , no money laundering , no prostitution , no corruption ( did I forget anything ?)

spot on with all these "no's"

Never a reduction in tourism?

[webfact]

World body blacklists Thailand

The Nation

Country among 15 not doing enough to combat money-laundering and terrorism financing

PARIS: -- Thailand was yesterday identified by an intergovernmental organisation as uncooperative in the global efforts to combat money-laundering and terrorism financing.

The move came only days after bomb blasts in Bangkok and discovery of explosive devices linked to terrorism.

The Paris-based Financial Action Task Force (FATF), in its statement on Thursday (yesterday Bangkok time), said Thailand was one of 15 countries that have begun taking steps to combat terrorist financing and money-laundering but have yet to make sufficient progress in addressing the deficiencies in their regulations.

Deputy Premier and Finance Minister Kittiratt Na-Ranong yesterday expressed concern that the move could adversely affect Thailand's image and its economy. He said the government would ask the Anti-Money Laundering Office to explain the situation. "As far as I know, Thailand has been requested by the FATF to issue an anti-money-laundering law that complies with international standards but we have failed to do so, which led to the country being blacklisted," Kittiratt said.

Songtham Pinto, director of the Bank of Thailand's macro-economy division, said he expected short-term negative impact on tourism as a result of the FATF move and the earlier bomb scare in Bangkok, which was linked to international terrorism.

Siam Commercial Bank president Kannika Chalit-aphon urged the government to expedite the legislation. She expected the impact on investor confidence to be short-term. "There could be some worries and impacts on investments in certain industries. It is not a big problem," she said.

Tevin Vongvanich, chief financial officer of PTT, said the company was evaluating the expected impact on the company's financial transactions after Thailand was listed among watch-list countries that are not active in enforcing legislation to combat money-laundering and terrorism financing. In general, the transactions may take a longer time for financial scrutiny. However, PTT is confident that the downgrade will not affect its financial-transaction costs. "At PTT, we believe that our existing customers understand this matter, and this will not affect the financial transactions between us and existing clients. But we may have to explain more to new clients," he said.

Paiboon Nalintharangkul, chairman of the Federation of Thai Capital Market Organisations (FeTCO), said the government would have to pay attention to this and proceed with an amendment to its money-laundering law.

Being on such a blacklist could affect the competitiveness of the private sector, he said, while investing overseas may require more complicated procedures.

Foreign investors may not be concerned about this and foreign capital will continue to flow in, seeking higher returns as the country's economic fundamentals are sound, he explained.

On the contrary, there may be a problem for capital outflow, he said. For example, wealth management and private funds or funds with overseas investment policies may find difficulties investing overseas due to likely more complicated procedures for checking sources of investment.

Opposition Democrat politician Korbsak Sabhavasu, formerly a deputy prime minister, said this latest development was not good for Thailand's reputation, as most of the countries identified by the FATF as uncooperative had a negative image regarding money-laundering and terrorism financing.

The Ministry of Foreign Affairs yesterday cancelled its news conference on the matter.

In its statement, the FATF said: "Despite Thailand's high-level political commitment to address its strategic deficiencies, Thailand has not made sufficient progress in implementing its action plan, and certain strategic deficiencies remain."

It recommended that Thailand should adequately criminalise terrorist financing, establish and implement adequate procedures to identify and freeze terrorist assets, and further strengthen supervision of money-laundering and terrorism financing. In addition to Thailand, the other countries on the latest FATF list of non-cooperative countries are Bolivia, Burma, Cuba, Ethiopia, Ghana, Indonesia, Kenya, Nigeria, Pakistan, Sao Tome and Principe, Sri Lanka, Syria, Tanzania, and Turkey.

-- The Nation 2012-02-18

[Naam]

Why am I not surprised, seeing the amount of property being bought at inflated prices and left empty.

And why else would anyone buy an overpriced, imported car?

because he/she can.

[crusader79]

I wonder how the powers that be will respond to this....Probably more of same like We in Thailand do not need to implement anything in the West as it may well corrupt our society!

Ah, yes - because stuff couldn't possibly be abused if they force Thailand and others to bow to their controls.

Try looking up Enron, Lehmans, Northern Rock, Bear Sterns, Black Monday, Black Wednesday, Turkey, Greece, Iceland, Argentina.

Isn't it great how since 9/11 they've managed to warp perception such that nobody even blinks any more when they see "money laundering" and "terrorism" in the same sentence...

Those boxcutters were expensive.

[chooka]

I wonder how the powers that be will respond to this....Probably more of same like We in Thailand do not need to implement anything in the West as it may well corrupt our society!

I guess the same as they have been playing down the terrorist threats. All you simply have to do is pull down the blinds, say it isn't so and it will all go away.

[mrjonyoung]

I launder my money the old fashioned way, by-hand. It just gets cleaner that way.

[hawker9000]

The headline and story are not correct. Thailand is NOT on the blacklist, only Iran and North Korea are, but on another list, known as the grey list.

I've been to their website and checked, and couldn't find anything that would appear to update or contradict the above, which dates from October of last year. ('Course, maybe that just means they haven't updated their website yet.)

[NanLaew]

It's late but what's happening with house prices and rents?

They seem all of a sudden to be rising exponentially.

Incidentally I posted this before but only yards from where the iranian blew himself up some weeks back I was waiting behind a lady at the K bank as she withdrew money from the ATM.

I was curious as she touched the screen to count the zeros of the money she was taking out; 20,000 baht. She was so slow. Not uncommon.

I then happened to glance at the balance which was 100,500,000 baht. More than 2 million quid in her deposit account.

A developer we know has just rebuilt her old house and she was offered 26000000 baht for a 3 bedroom house by a farang off Sukhumvit soi 71 but instead now she wants to rent out for 100,000 per month.

A year or two back over in Silom there were no farang and now...

So, it's all the foreigners fault? Or at least the foreigners that peer over your shoulder at the ATM?

Her deposit account eh? How did you work THAT out since most Thais like to carry out their transactions in Thai.

That's right, you read Thai.

Edited February 18, 2012 by NanLaew

[NanLaew]

The headline and story are not correct. Thailand is NOT on the blacklist, only Iran and North Korea are, but on another list, known as the grey list.

I've been to their website and checked, and couldn't find anything that would appear to update or contradict the above, which dates from October of last year. ('Course, maybe that just means they haven't updated their website yet.)

Ah, the Thai apologists are coming out. It's not a black list, it's only a grey list. Heaven forbid that Thailand could end up on the taupe list... let alone the mauve one.

Semantics masquerading under a painters palette. There's enough Irish themed pubs in Bangkok and short-time bars in Soi 6 Pattaya being refurbished and changing hands every 5-6 months to raise an eyebrow. Always seems to be the same sort of people running them at the same time as trying to sell them to....the same sort of people.

Thailand had been a money laundering hub for ages because the corruption from top government down to the police allows it and the general population feel obliged to carry on doing business this way; the Thai way. The foreigners are just cashing in on a system that allows it while officially not condoning it (apart from the Education Minister who recently stated that 'donations' to schools should not be discouraged).

Edited February 18, 2012 by NanLaew

[hawker9000]

The headline and story are not correct. Thailand is NOT on the blacklist, only Iran and North Korea are, but on another list, known as the grey list.

I've been to their website and checked, and couldn't find anything that would appear to update or contradict the above, which dates from October of last year. ('Course, maybe that just means they haven't updated their website yet.)

Ah, the Thai apologists are coming out. It's not a black list, it's only a grey list. Heaven forbid that Thailand could end up on the taupe list... let alone the mauve one.

Semantics masquerading under a painters palette. There's enough Irish themed pubs in Bangkok and short-time bars in Soi 6 Pattaya being refurbished and changing hands every 5-6 months to raise an eyebrow. Always seems to be the same sort of people running them at the same time as trying to sell them to....the same sort of people.

Thailand had been a money laundering hub for ages because the corruption from top government down to the police allows it and the general population feel obliged to carry on doing business this way; the Thai way. The foreigners are just cashing in on a system that allows it while officially not condoning it (apart from the Education Minister who recently stated that 'donations' to schools should not be discouraged).

Nope, not an apologist by any means. 'Matter-of-fact, I predict the fishing nets that get deployed as a result of global bodies issuing such findings as this are likely to catch up, inconvenience, and no doubt cost lots of totally innocent actors. And yes, the US in particular is and has been very aggressive in securing foreign cooperation in tracking down and rendering unavailable every possible means by which taxes can be avoided. This could've been predicted the moment the Internet went live... As for me, I wouldn't dream of investing money in Thailand or buying any property there. This is just one reason.

[jacko45k]

thats a sad news for Thailand , lets hope this government will act in a serious way . ( yeah I know I can dream on this) But knowing the country I already hear the comments ... There are no terrorism in Thailand , no money laundering , no prostitution , no corruption ( did I forget anything ?)

I am inclined to think Thailand is in a better financial position that many of these countries that meet 'International Standards'

And I am not sure Italy behaves so well either.

It is a joy that I can send money to and from Thailand without a third degree.

[maidu]

Anyone got too much money and wants to launder some with me? I've got room in my washing machine. Send me a note. Discretion paramount.

[MonsterP]

So does this mean that when we try to transfer our hard earned funds out of TH to offshore they will be blocked or limited? I.e. legitimate savings deposited and currently kept in a Thai bank account.

Anyone got any factual information please?!? :-)

[sparebox2]

Thaksin must be number one on the list.

[zachlsd]

No more killing in the south. No more poor farmers getting cheated on their crops namely rice. No more dams. No more deforestation. No more senseless political muders. No more 16yr old drivers. No more self-exhiled DBs playing god. No more line cutting. No more underage prostitures. No more fraudulent NGOs. No more national park encroachment. No more ice from the burmese army. No more corruption on every level from soi dogs ruling sois to politicians selling people n drugs. No more shinawatra soap operas. No more than 5 chilis in my somtom. And please...no more seeds in the weed.

[sparebox2]

No more killing in the south. No more poor farmers getting cheated on their crops namely rice. No more dams. No more deforestation. No more senseless political muders. No more 16yr old drivers. No more self-exhiled DBs playing god. No more line cutting. No more underage prostitures. No more fraudulent NGOs. No more national park encroachment. No more ice from the burmese army. No more corruption on every level from soi dogs ruling sois to politicians selling people n drugs. No more shinawatra soap operas. No more than 5 chilis in my somtom. And please...no more seeds in the weed.

No more 16yr old drivers? The poor girl you refered to that caused 9 death was 17+.

[zachlsd]

I was talking about the multitudes of 16yr old drivers in LOS...not the 17yr old from the rich and afluent family that got away with murder...but no more of that crap too.

.

damned if you do, damned if you dont.

Edited February 18, 2012 by zachlsd

[travelmann]

thats a sad news for Thailand , lets hope this government will act in a serious way . ( yeah I know I can dream on this) But knowing the country I already hear the comments ... There are no terrorism in Thailand , no money laundering , no prostitution , no corruption ( did I forget anything ?)

...no hypocrisy, no ineptitude, no racism, no double standards, no cronyism, no social disparagies, no anal retentiveness, no holier-than-thou attitudes, no taxi mafia, no jet ski scams, no gem scams, no red-tape bureaucracy (did I forget anything?).

Yeah "no hope" for change anyway!!

[rakman]

Here's the correct latest list from the organization's website. Quite good company Thailand is keeping there in its little League of Nations.

Paris, 16 February 2012 - The Financial Action Task Force (FATF) is the global standard setting body for anti-money laundering and combating the financing of terrorism (AML/CFT) . In order to protect the international financial system from money laundering and financing of terrorism (ML/FT) risks and to encourage greater compliance with the AML/CFT standards, the FATF identified jurisdictions that have strategic deficiencies and works with them to address those deficiencies that pose a risk to the international financial system.

Jurisdictions subject to a FATF call on its members and other jurisdictions to apply counter-measures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdictions*.

Iran

Democratic People's Republic of Korea (DPRK)

Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies**. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below.

Cuba**

Bolivia

Ethiopia

Ghana

Indonesia

Kenya

Myanmar

Nigeria

Pakistan

São Tomé and Príncipe

Sri Lanka

Syria

Tanzania

Thailand

Turkey

http://www.fatf-gafi...1_1_1_1,00.html

Be careful with whom you stand by.

[rakman]

So does this mean that when we try to transfer our hard earned funds out of TH to offshore they will be blocked or limited? I.e. legitimate savings deposited and currently kept in a Thai bank account.

Anyone got any factual information please?!? :-)

Its coming. Italy proposed a downward limit on cash transaction size to increase tax revenue. Eventually, the world will catch on and cash will become a thing of the past.

[travelmann]

thats a sad news for Thailand , lets hope this government will act in a serious way . ( yeah I know I can dream on this) But knowing the country I already hear the comments ... There are no terrorism in Thailand , no money laundering , no prostitution , no corruption ( did I forget anything ?)

I am inclined to think Thailand is in a better financial position that many of these countries that meet 'International Standards'

And I am not sure Italy behaves so well either.

It is a joy that I can send money to and from Thailand without a third degree.

Is that because they havent paid back all the money they borrowed from the 97 crash?

[eddi]

If Thailand has a "crackdown" on money laundering where will the Russians go?

[TallGuyJohninBKK]

So does this mean that when we try to transfer our hard earned funds out of TH to offshore they will be blocked or limited? I.e. legitimate savings deposited and currently kept in a Thai bank account.

Anyone got any factual information please?!? :-)

To the average citizen, it means nothing right now.. This organization is just advisory. It doesn't have any authority to impose any sanctions itself.

But, it puts Thailand in the same basket with a bunch of other pretty unsavory countries....and kind of is a black/gray mark against Thailand in terms of reputation in the financial world...

However, if these kinds of things continue to not be addressed by the government of Thailand, it could conceivably lead to some real consequences somewhere down the road... But I wouldn't sweat it right now..

I'm sure Thailand will continue to be a happy home for money laundering and terrorist R&R for many years to come.

[lukchang]

thats a sad news for Thailand , lets hope this government will act in a serious way . ( yeah I know I can dream on this) But knowing the country I already hear the comments ... There are no terrorism in Thailand , no money laundering , no prostitution , no corruption ( did I forget anything ?)

No casinos, no mafia, no racism, no political assassinations, no human rights violations, no rich kids in Porsches cutting pedestrians in half and getting away with it, no tea money, no gender confusion, no blame for crimes while drunk, no Sakdina, no abused elephants, no sold children, no bus drivers sleeping on the job, no media monopoly, no 3G, no farang murder victims unless perp is also farang, no fixed muay Thai fights or horse races, no bad bomb detectors or blimps, no TAT film festival wrong-doing, no too cheap to buy paper cups for the drinking fountain, no default on highway construction payments, no spousal abuse, no piracy of software movies and music, no biased research when fortune tellers are available, no fake university degrees, no revenge, no unsafe vehicles on the road, no inter-collegiate warfare, no incorrect translitterations, no broadcast audio out of sync with the video, no feral dogs, no smog in Chiang Mai, no over charging tuk tuk drivers, no dishonest jet ski operators, no finance charges by banks of the same chain when you are away from your home bank branch, .............etcetera

No Floods?

[chrisinth]

More b.s. from the Nation.

For those interested, here is the link to the FATF last report http://www.fatf-gafi...1_1_1_1,00.html

I post it in full, I believe it's a much better starting point for a debate. I don't think the FATF will mind but the mods are of course free to edit if they disagree.

You would also think that they would use a better source to base their article on:

"According to www.wisegeek.com, being on this list can have serious consequences"