admin Posted February 11, 2012 Report Share Posted February 11, 2012 (edited) Thai businesses could suffer enormous losses if Thailand fails to strengthen its legal and regulatory framework against money laundering, warned local financiers and regulators. Sihanart Prayoonrat, acting secretary-general of the Anti-Money Laundering Office (Amlo), said Thailand could be blacklisted or see its status downgraded due to delays in strengthening its anti-money laundering laws. A downgrade, Col Sihanart said, would have a potentially sweeping impact on the Thai finance and business sectors as well as the general public because international financial transactions would become more complicated. The Financial Action Task Force (FATF), a group of 36 countries responsible for setting standards on anti-money laundering and countering the financing of terrorism, is due to meet next week in Paris. The group is set to announce a new list of "high-risk" and "non-compliant" countries on Feb 20. "FATF members would be obliged to instruct their own financial institutions to scrutinise more closely financial transactions with Thai entities, resulting in greater delays in transactions and affecting international trade," said Col Sihanart. Even a basic transaction such as clearing a letter of credit could be delayed by up to one month compared with about one week now, he said. The clearing and settlement system for the securities market could similarly be affected, as financial payments for transactions would be delayed due to the need for increased scrutiny of any transactions with Thai counterparties. Col Sihanart, who will attend the FATF meetings next week, said Thailand faces criticism for its delays in passing new laws that would strengthen rules against money laundering or financing for terrorist activities. Two draft laws have already been completed, but have been delayed from implementation the past three years due to feet-dragging in establishing the Amlo board. Once approved by the board, the drafts must still be vetted by the cabinet, Council of State and Parliament before becoming law. An FATF report in 2010 noted that while Thailand had taken steps towards improving its anti-money laundering system, "strategic deficiencies" remain including the lack of adequate laws against terrorist financing. According to the FATF, Thailand is already considered a "high-risk" country with regulatory deficiencies. However, it recognises the country has made political commitments to address ongoing weaknesses. Other countries in this group include Argentina, Indonesia, the Philippines and Vietnam. Countries considered "non-compliant" include Iran, North Korea and Nigeria. More... Edited February 11, 2012 by FarangFarang Link to comment Share on other sites More sharing options...
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