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Thailand’s cabinet has approved a draft regulation to foster stronger scrutiny of customers’ source of funds for Thai businesses most vulnerable to money laundering exploitation.

The Bangkok Post reports that the draft regulation “requires financial institutions and business operators as listed under Section 16 of the Anti-Money Laundering Act to assess their customers’ activities to reduce the risk of money laundering and/or terrorist financing“.

The new law was proposed after Thailand failed to meet the International Standard for Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT), especially in regards to the number of sectors and business activities required to comply with AML regulations.

Under the new regulation, not only banks but also investment consultants, gem and gold traders, real estate brokers, electronic payment service providers, antique traders, and non-bank credit companies will be required “to suspend business transactions with customers whose financial activities are deemed suspicious, and report them to Amlo”.

Deputy government spokeswoman Rachada Dhnadirek announced that, for cross-border wire transfers exceeding 50,000 baht (approximately €1,350), “both the ordering and the recipient institution will be required to obtain information about the origin of the funds, as well as both the sender and recipient”.

Thailand is only the latest addition to the list of jurisdictions that have recently introduced new regulations to expand the scope of AML requirements well beyond the traditional banking sector. While in Europe the new direction is exemplified by the Fifth Anti-Money Laundering Directive (AMLD5), in Asia similar changes have taken place in both Hong Kong and Singapore.

At Know Your Customer, we specialise in providing end-to-end digital solutions to financial institutions and other regulated companies around the world.
Our mission is to empower compliance teams to protect their business and efficiently perform all necessary AML checks on both individual and corporate customers, centralising the onboarding process through a uniquely intuitive and easy-to-use platform.

If you’re looking for a solution that can help you ensure on-going regulatory compliance across jurisdictions (including Thailand), please contact us here.

If you’re looking for a solution to help you ensure on-going regulatory compliance across jurisdictions (including Thailand), please get in touch.

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Last updated on April 23rd, 2023 at 07:27 pm

Claus Christensen

Claus Christensen is the CEO & Co-Founder of Know Your Customer. His vast array of previous experiences includes founding a technology company that develops email server infrastructure products for 60,000+ global customers and serving as VP Electronics at Thielert Aircraft Engines. A regular contributor to leading industry publications and a recognised expert in the anti-money laundering and financial regulation space, Claus is also the host of the RegTalks podcast and a senior lecturer of the Centre for Finance, Technology and Entrepreneurship (CFTE)’s RegTech Course.