Money-Laundering Grey List Yet To Hurt: Thailand

[webfact]

FATF

Money-laundering grey list yet to hurt

Business reporters

The Nation

Money is still transferable as usual, veterans in tourism and other businesses say.

BANGKOK: -- They spoke after the Anti-Money-Laundering Office (AMLO) aired concerns that Thailand faces a high risk of being 'blacklisted' by global watchdog Financial Action Task Force (FATF) for lack of action in countering money-laundering.

AMLO secretary-general Sihanart Prayoonrat said at a press conference yesterday that being in the FATF "grey-list" for involvement in terrorist support and money laundering had already created problems for Thai tourism enterprises.

The FATF has reported its listing to many member states. Sihanart said this action had affected Thai tour companies as their money had been "rejected". And Thai people may soon face problems transferring funds to relatives or families overseas, or when travelling overseas. Their credit cards could be rejected, he said.

Enforce anti-money-laundering regulations: AMLO chief

In order to solve the problem, he said Thailand should urgently enforce anti-money-laundering regulations and cut any support for terrorist acts.

He said the AMLO had already put these ideas to the Cabinet. But the moves needed to be implemented this year, otherwise Thai businesses would face serious problems on money transactions.

Suthiphong Pheunphiphop, president of the Thai Travel Agents Association (TTAA), said there was no sign at present that overseas banks had rejected money transfers from travel agents from Thailand. Some 700 travel agents were members of the association and they had been working as usual. He insisted that no members were involved in money laundering.

"Today I had meetings with 4-5 travel associations, but nobody has raised this issue,'' he said.

But he acknowledged that the issue was a big concern. If such problems occurred, the Ministry of Tourism and Sport should play an important role in seeking a solution. The association would also have to meet members to discuss the situation.

Maiyarat Pheerayakoses, president of the Association of Domestic Travel, believed the issue would not hurt the tourism industry. Operators were "clean" of money-laundering. And the financial system could prove this with documents of transfers to bank destinations when operators deal with firms overseas.

Paiboon Ponsuwanna, president of the National Shippers Council, said exporters and importers had not felt negative impacts from Thailand being put on the FATF "grey list". "However, it could create more costs for bankers in the future."

Vallop Vitanakorn, vice chairman to the Federation of Thai Industries, said businesses were not affected yet but he worried some importers could soon face difficulties in dealing with overseas traders, as they would be carefully checked on their credit and sources of fund.

He said some businesses may also cite the grey-list to create barriers for Thai businesses.

-- The Nation 2012-05-17

[swillowbee]

... elephant in the living room ... history is on the side of movement toward lawfulness, unless Thailand's elite leaders decide to protect themselves from disclosure by choosing a path toward isolationism ... unlikely the country would survive very long ... I tend to expect that Thailand will do absolutely nothing, or merely offer superficial 'compliance' only, until their nose is held in the stinky poo of their nation's corruptness.

Edited May 17, 2012 by swillowbee

[Moruya]

If certain US registered businesses are unable to conduct their affairs without falling foul of the FCPA then that could start to bite

[anterian]

Can someone clarify for me, is this suspect grey money moving into Thailand or out of Thailand? I have never had any problems so far, my UK ATM card works in Thailand and my Thai ATM card works in England. When I transfer funds I use Paypal or Moneybookers. The only problems I have met is that many overseas companies are reluctant To use the Thai postal service for deliveries.

[JohnAllan]

Bit of a bummer. After all, under-the-radar funds need to find a home somewhere.

[Orac]

"In order to solve the problem, he said Thailand should urgently enforce anti-money-laundering regulations and cut any support for terrorist acts."

This seems a very odd statement if it has come from the AMLO chief. Surely he is the one responsible for enforcing the regulations to some degree and also I would be interested to know what support for terrorist acts is currently being given if he wants it cutting??

[bkk_mike]

If certain US registered businesses are unable to conduct their affairs without falling foul of the FCPA then that could start to bite

Only needs the shares to be traded in the US.

Some of the biggest fines to date are on foreign companies (Siemens and British Aerospace are examples).

But yes, I work for a US company and the compliance regarding dealing with government employees or pseudo government entities (i.e. things like TAT, CAT, TOT, etc.) is a lot more excessive following the passing of the FCPA...

[TheCure]

Yes they will get some laws approved by parliament, but guess what?

There never was a rule of law in this country.

The very people, who are going to vote in favor of this anti-money laundering law, are the worst perpetrators of money laundering offenses in this banana m.......

[rubl]

Yes they will get some laws approved by parliament, but guess what?

There never was a rule of law in this country.

The very people, who are going to vote in favor of this anti-money laundering law, are the worst perpetrators of money laundering offenses in this banana m.......

The effectiveness of laws is certainly not always as one would hope for. TiT as they say.

BTW could you use normal font size when posting ?

[jerrysteve]

The best thing to happen to Thailand is for over seas money to completely dry up. They need to be kicked hard in their pocket books where it counts. Nothing short of that will do.