As certain provisions of the AMLA still does not fully comply with the international standards set by Financial Action Task Force (“FATF”) and some provisions of AMLA are no longer aligned with current circumstances and have become obstacles to the law enforcement. Therefore, the government is in the process of considering the amendment to AMLA.
This new draft amendment of AMLA introduces significant changes, broadening the scope of “predicate offenses” and enhancing the legal framework for anti-money laundering and counter-financing of terrorism, reflecting Thailand’s ongoing efforts to strengthen its legal framework against money laundering and related financial crimes, in line with international standards set by FATF.
The summarized key changes of the new draft amendment of AMLA include:
1. Expanded and Amended Definition of Predicate Offenses:
The draft would amend some definitions of predicate offenses and expand the list of predicate offenses under AMLA as detailed in table below:
2. Inclusion of Criminal Networks:
The draft adds the definition of “Criminal Network,” which refers to a group of three or more individuals collaborating to engage in illegal activities with the intent of directly or indirectly obtaining financial, asset, or material benefits.
3. Update of Financial Institution Definition:Update the definition of “Financial Institution” to include:
- the business operators of savings cooperatives and credit unions businesses with capital having total shares ‘value over THB 50million,
- personal loan business,
- credit card business,
- payment system and payment service businesses (which are not other types of financial institution),
- foreign exchange business,
- digital asset and ICO portal businesses, and
- other financial or fintech businesses as specified by Anti-Money Laundering Office (“AMLO”).
4. Update of Professionals with Reporting Obligations:
The draft includes the following professionals to have reporting obligations:
- trustees,
- dealers in motorcycles,
- automobile and motorcycles leasing,
- automobile and motorcycles hire of purchase, and
- dealers in relics or art objects under law concerning ancient monuments, relics, art objects, and national museums
5. Reporting Obligations on Non-Profit Organizations:
The draft grants AMLO with authority to order foundations, associations, or non-profit organizations that receive funds or assets from foreign individuals, or from foundations, associations, or non-profit organizations located abroad, with annual amounts exceeding the limits set by AMLO to clarify the facts regarding the transactions or to temporarily suspend such transactions for a period determined by the AMLO.
If necessary, the Secretary of AMLO or an authorized officer assigned by the Secretary of AMLO may also enter the premises of such foundation, association, or non-profit organization between sunrise and sunset to conduct necessary inspections.
6. Standardized Reporting Requirement for Customs Officer:
The draft requires customs officers to forward any notified transactions involving the transfer or importation of currency, foreign currency, or negotiable instruments into or out of the country to AMLO, regardless of the transaction amount, in accordance with laws relating to foreign exchange control.
7. Enhanced Reporting Procedure and Confidentiality:
The draft introduces stricter confidentiality requirements for reporting suspicious transactions, along with updated procedures for handling reports and disclosing information to government bodies.
8. Consolidated 5-Year Retention of Information Requirement:The draft stipulates that information or evidence used in reports or obtained through required due diligence under AMLA must be retained for five years from the end of the business relationship with the customer. Unless certain exceptions apply, the retention period begins from the date of the transaction or the recording of such facts. This retention period may be extended beyond five years, up to a maximum of ten years, for specific matters or cases.
9. Enhanced Asset Confiscation:
- Introduce clear procedures with enhanced protections of rights for innocent parties against asset seizure or freezing related to money laundering, ensuring that assets shall be returned to their rightful owners if they are proven to be unrelated to a criminal activity.
- Grant authority to the public prosecutor to petition the court for the revocation of encumbrances on assets if the right owner of such encumbrance is linked to money laundering activities as requested by Secretary of AMLO.
Progress of Legislation Process
As confirmed with AMLO on 16 August 2024, this draft amendment has successfully passed through the legislative process and public hearing conducted by the Office of the Council of State. It has now been submitted to the Thai Cabinet for further approval by the House of Representatives and House of Senate respectively.
