AMLO expert offers scary lessons for Phuket property brokers

[webfact]

AMLO expert offers scary lessons for Phuket property brokers
Tanyaluk Sakoot


Sunpet Sangnetswang: Be suspicious, be careful, tell us everything.

PHUKET: People working in Phuket’s property industry, particularly real estate brokers, were briefed yesterday (September 10) by an expert from the Anti-Money Laundering Office (AMLO) on how to avoid falling foul of Thailand’s money-laundering laws.

Sunpet Sangnetswang, Director of AMLO’s Supervision and Examination Division, opened up a frightening vista for brokers and warned them that they must be much more aware of the possibility of money laundering.

He explained that AMLO has access to sophisticated computer systems that can track people laundering money, along with their relatives and associates. It has the power to seize assets not only from the money launderers themselves but also from their families and associates.

He warned his audience, “The Money Laundering Suppression Act has great implications for you[in the property industry]. Please be careful.”

He gave an example of how assets can be seized. AMLO officers went to seize assets from a man convicted of making money from narcotics. They discovered he had spent some of his ill-gotten gains on buying four crocodiles for breeding.

“When we got to his farm in Nakhon Pathom we found hundreds of crocodiles. We could not tell which were the four bought with his drug money.” But this did not matter, he said; all the animals were offspring of the four crocs and were therefore the proceeds of laundering. AMLO seized the entire farm.

Another of the successful cases involved a Russian marijuana dealer who had a Thai wife and had bought three homes on Thai golf courses, in his wife's name. The houses were seized.

He noted, too, that since the May 22 coup “our policy has become much more serious”.

“Property brokers may not actually be laundering money themselves but they may be used [by criminals] as tools to launder money.” If brokers fail to provide information about buyers, they can be fined up to B500,000. If they provide false information, they can go to jail for up to two years.

“Laundering has been an international financial problem for a long time. Plus, Thailand is perceived to be one of the the top five places in the world for money laundering.” AMLO, he said, had started to make a dent in this perception last year.

He said that typical criminal businesses that required money laundering services include prostitution and human trafficking, weapons, supporting terrorism, intellectual property piracy, counterfeiting currency, passports or other documents, receiving stolen goods, and “Ang Yi”(Triad gang) activities. All such activities are watched by AMLO.

After thoroughly alarming his audience he offered some advice. “Let’s say someone wants to buy expensive land using your services. Let’s say he runs a junk shop.

“How does a junk shop owner make that kind of money?

“Please be more careful about the clients who come to buy property through you.

“You should talk and ask your client for some information. Even if it’s a matter of one baht, if you think something is suspicious, contact me. You can do this through our website or privately by letter. We are obliged by law not to reveal any details of our sources to anyone.

“However, if you are suspicious and you do not inform us, then you could be in trouble.”

He warned the brokers that there were limits on how much commission they could receive without reporting to AMLO. For example, any cash payment of more than B2 million must be reported.

“You are also obliged to obtain basic information about buyers, such as name, address, ID card or passport number. You must keep this information for five years.

“If you have any information which you think is suspicious please inform AMLO and we will take it from there. You will not have any problem.”

The AMLO website address is amlo.go.th

Source: http://www.thephuketnews.com/amlo-expert-offers-scary-lessons-for-phuket-property-brokers-48673.php


-- Phuket News 2014-09-11

[monkeycountry]

"Let’s say someone wants to buy expensive land using your services. Let’s say he runs a junk shop.

“How does a junk shop owner make that kind of money?""

Perhaps the amlo guy should redirect his attention as the same question can be asked to most Thai policemen and many government officials, who I am quite sure launder alot more money in Thailand than foreigners do. The question would then be:

"Let’s say someone wants to buy expensive land using your services. Let’s say he is a Thai policeman.

“How does a Thai policeman make that kind of money?""

[manarak]

"Let’s say someone wants to buy expensive land using your services. Let’s say he runs a junk shop.

“How does a junk shop owner make that kind of money?""

Perhaps the amlo guy should redirect his attention as the same question can be asked to most Thai policemen and many government officials, who I am quite sure launder alot more money in Thailand than foreigners do. The question would then be:

"Let’s say someone wants to buy expensive land using your services. Let’s say he is a Thai policeman.

“How does a Thai policeman make that kind of money?""

good point, and I am sure the responsible military minister has briefed the AMLO accordingly.

[ldnguy]

"Let’s say someone wants to buy expensive land using your services. Let’s say he runs a junk shop.

“How does a junk shop owner make that kind of money?""

Perhaps the amlo guy should redirect his attention as the same question can be asked to most Thai policemen and many government officials, who I am quite sure launder alot more money in Thailand than foreigners do. The question would then be:

"Let’s say someone wants to buy expensive land using your services. Let’s say he is a Thai policeman.

“How does a Thai policeman make that kind of money?""

He could have inherited it. Lots of older Thais own valuable land that passes on to their children when they die. Because you don't earn much doesn't mean you can't have valuable assets.

[sojourner007]

"Another of the successful cases involved a Russian marijuana dealer who had a Thai wife and had bought three homes on Thai golf courses, in his wife's name. The houses were seized."

I wonder how many of those "quality" Russian visitors and expats, so worshipped by the property industry in Pattaya, Phuket, Samui, etc., are simply money launderers.

[steelepulse]

I'm thinking the junk shop owner won the underground lottery and of course wants to invest the money, not blow it.

[mok199]

oh no..they are getting strict....even scarey....oooooooooooooooo.............

[Nuddy]

Maybe it all sounds better when spoken and written in the thai language.

Regards

[Chris Lawrence]

The boys at the Government Tobacco Company made a lot of money. In The US they took the culprits from the Tobacco companies to task and fined them, but the Thai bureaucrats got their illgotten gains? Not a word said from this side of the fence.

Sounds tuff, but.......

[belg]

wow, lots of nr 1 hubs for thailand

[jpeg]

It's an open secret Phuket has long been the hub ( ) of money laundering (I dunno, all those empty shophouses ...), or 'black money' used by the predominantly wealthy Bangkok Chinese who I'm pretty sure wayyyy outnumber we farang. Stable door. Horse. Bolted

[The Maltese Falcon]

It's an open secret Phuket has long been the hub ( ) of money laundering (I dunno, all those empty shophouses ...), or 'black money' used by the predominantly wealthy Bangkok Chinese who I'm pretty sure wayyyy outnumber we farang. Stable door. Horse. Bolted

Listen guys Icannot believe what I'm seeing on this site, about this soldier he want to get everybody on the straight and narrow but I reckon he is barking up the wrong tree. To beat corruption he have to put everybody in the monkey house the 74000000 of them

[ableguy]

I'm thinking the junk shop owner won the underground lottery and of course wants to invest the money, not blow it.

His wife had a hugely popular som tam stall, run by her cousin who only had one leg and thus was dependent on this income for her regular purchase of Thai bamboo crutches which were supplied from a farm ran by Laos lepers who were displaced war refugees, these unfortunate souls were being extorted for protections money by a high ranking police officer whose daughters friend was related to a high society person in the government with important family connections in the military,pretty simple really if you just follow the money trail.

[grumpyoldman]

Need to launder some ill-gotten gains and you buy crocodiles? "A fool and his money.............."

[Benjie]

It's an open secret Phuket has long been the hub ( ) of money laundering (I dunno, all those empty shophouses ...), or 'black money' used by the predominantly wealthy Bangkok Chinese who I'm pretty sure wayyyy outnumber we farang. Stable door. Horse. Bolted

How is spending what must have already been converted into Thai baht on empty shophouses that don't make any money actually laundering money?

Why not just keep the money used to build them and spend it on what you want.

Why would someone with ilicit money spend it on unsuccessful or unproductive assets that are easier to trace than money in a safe spent on what they want.

[NamKangMan]

It's an open secret Phuket has long been the hub ( ) of money laundering (I dunno, all those empty shophouses ...), or 'black money' used by the predominantly wealthy Bangkok Chinese who I'm pretty sure wayyyy outnumber we farang. Stable door. Horse. Bolted

How is spending what must have already been converted into Thai baht on empty shophouses that don't make any money actually laundering money?

Why not just keep the money used to build them and spend it on what you want.

Why would someone with ilicit money spend it on unsuccessful or unproductive assets that are easier to trace than money in a safe spent on what they want.

People need to show where the money came from, or where it went, if they are ever investigated. Making a loss, on purpose, is showing "where it went."

There are a few ways to launder money through real estate and business purchases.

One example is, say the shop house's actually market price is 2 million baht. The criminal will do a deal where he buys, on paper, the shop house for 5 million baht.

He pays the actual 2 million baht for the shop house, makes a cash payment of 500,000 baht to the owner and/or real estate agent to keep quiet, and has just "laundered" around 2 million baht from his home country. That 2 million baht sits in a safe to do what he wants with.

If investigated, he looks "stupid" for paying 5 million baht for something worth 2 million baht, but being stupid is not a ciminal offence.

Another example is building, overstating labour and materials used. The bigger the house or project - the more can be overstated and laundered.

Even in their home country, many people need to show a loss on property or a business, for tax minimisation purposes. Many times these losses are legitimate, but many times the losses are overstated.

Many people who work in the cash economy have worked legitimately, but have avoided paying tax. These people need to launder their money to avoid paying tax.

A common way of showing "where it come from" is laudering money is through gambling. For example, they go to the race track and hang around the big gamblers. If one of these guys wins $50,000 on a horse, they will approach him and say they will buy his winning ticket off him for $55,000 - cash. The big gamblers know what's going on. If the bet placed was only $10,000 - they have just laundered $40,000.

If investigated, he looks like he has a gambling problem, but having a gambling problem is not a criminal offence.

Many criminal gangs and drug syndicates will launder their money through a legitimate business. They buy a struggling business, or start a business, and suddenly, that business is making huge profits. They pay tax, and all other associated overheads, so, it appears legitimate, meanwhile, they are pumping black money through the business to make it appear very successful, but it's just a front. They now appear a succesful businessman, but the business is laudering the proceeds of crime.

High wealth individuals, who are dodgy, will evern set up their own charity, or foundation, to launder money through. They make big donations, which are tax deductable, with a lot of the money coming back to them.

Most of the above usually has a dodgy accountant issuing instructions and hiding the money trail.

It's a lot more complex than the above, but that's the basics and a few examples.

Edited September 12, 2014 by NamKangMan

[Ulic]

Seems to me he forgot to name police chiefs and politicians as people who would/may need money laundering services.

[timewilltell]

"Let’s say someone wants to buy expensive land using your services. Let’s say he runs a junk shop.

“How does a junk shop owner make that kind of money?""

Perhaps the amlo guy should redirect his attention as the same question can be asked to most Thai policemen and many government officials, who I am quite sure launder alot more money in Thailand than foreigners do. The question would then be:

"Let’s say someone wants to buy expensive land using your services. Let’s say he is a Thai policeman.

“How does a Thai policeman make that kind of money?""

He could have inherited it. Lots of older Thais own valuable land that passes on to their children when they die. Because you don't earn much doesn't mean you can't have valuable assets.

Just banal! So now you are trying to imply some policeman on 6,000 baht a month is less suspicious than a foreign junk shop owner because he might have inherited his property along with the other 150,000 poor policemen, bug the foreigner would for some reason not have equally inherited? What sort of Thai apologist weed are you on! Unbelievable.

Sent from my iPad using ThaiVisa app

[timewilltell]

Given most rich Thais pay almost no tax, who do you think is doing the most laundering? Never mind this is fairy tale Thailand where you mustn't say anything about Thai money laundering but must focus 100% on the odd foreigner who might be doing it. Right! Not!

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