125TH INTERNATIONAL TRAINING COURSE
VISITING EXPERTS PAPERSSITUATION ON MONEY LAUNDERING IN THAILAND

Pol. Maj. Gen. Peeraphan Prempooti *I. THE ANTI-MONEY LAUNDERING ACT B.E. 2542 (1999)
The Anti-Money Laundering Act in Thailand originated as a result of the United Nations Convention
against Illicit Drug Traffic in Narcotic Drugs and Psychotropic Substances, 1988, known as the Vienna
Convention 1988.
This Convention was drafted as a consequence of the belief that effective law enforcement of drugtrafficking would take place if they could prosecute financiers or cut off their funds. There were several
meetings among more than 100 UN member countries and the Convention was resolved on 19 December
1988. At that time, there were 71 countries to ratify the Convention. As for Thailand, we did not ratify atthat time because we have to have approval from the Cabinet before endorsing any agreements. However,
we presented our will by signing the Final Act.
The Office of the Narcotics Control Board (ONCB) which is the Thai coordinating body on drug
matters has realized the importance of being a party to the Convention. Therefore, the ONCB set up the
Ad Hoc Committee comprising of representatives from concerned government agencies to consider theConvention.
On 16 May 1990, the Ad Hoc Committee passed a resolution that Thailand could be a party to theConvention when there are sufficient domestic laws to comply with the obligations addressed in theConvention. Two years later, there was a working group, chaired by a representative from the Office of
the Attorney-General, established to consider whether Thailand had sufficient domestic legal andadministrative measures to comply with the Convention. At that time, there was a resolution that Thailand
was not ready to be a party of the Convention because there was no domestic law concerning moneylaundering control. Consequently, the ONCB and concerned government agencies drafted the AntiMoney Laundering Act. The Bill was sent to the Cabinet and Parliament for consideration. On 19 March
1999, the Parliament, which consists of members from the House of Representatives and the House of
Senators, considered approving the Bill. Then, Anti-Money Laundering Act B.E.2542 (1999) was
published in the Government Gazette on 21 April 1999 and came into force in the Kingdom on 19 August
1999.
In Anti-Money Laundering Act B.E.2542 (1999), there are 66 sections covering definition terms;
general provisions; reporting and identification; the Money Laundering Control Board; the BusinessTransaction Committee; the Anti-Money Laundering Office; the procedure concerning property; andpenalties. The law can be categorized by Chapter as follows:
Chapter 1: General Provisions, comprising sections 5-12
Chapter 2: Reporting and Identification, comprising sections 13-23
Chapter 3: Money Laundering Control Board, comprising sections 24-31* Secretary-General, Anti-Money Laundering Office, Thailand.

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Chapter 4: Business Transaction Committee, comprising sections 32-39
Chapter 5: Anti-Money Laundering Office (AMLO), comprising sections 40-47
Chapter 6: The Procedure Concerning Properties, comprising sections 48-59
Chapter 7: Penalties, comprising sections 60-66(The Anti-Money Laundering Act B.E.2542 (1999) is in Appendix A)
A. Section 3
Definition terms used in this Act are prescribed in section 3. Currently, there are eight predicate
offences, including a new one - terrorism - that was enacted on 11 August 2003. The eight predicate
offences are as below:(1) Narcotics;(2) Trafficking in or sex exploitation of children and women in order to gratify the sexual desire ofanother person;(3) Cheating and fraud to the public;(4) Misappropriation or cheating and fraud under other commercial banks and financial legislation;(5) Malfeasance in office or judicial office;(6) Extortion and blackmail committed by organized criminal association or unlawful secret society;(7) Customs evasion;(8) Terrorism
The financial institutions having the legal obligation to report financial transactions to the AMLO
consist of commercial banks; finance companies; securities companies; credit financers; insurance andassurance companies; savings cooperatives; etc (such as money changers, securitization companies andinvestment consultants. Section 3 also gives the definition of Transaction and Suspicious Transaction .
The meanings of these two words are described as the following:Transaction means any activity relating to a juristic act, contract, or any operation with otherpersons dealing with finance, business or involving properties.
Suspicious Transaction means a transaction that is more complicated than the norm by which thattransaction is usually conducted, a transaction that lacks economic rationale; a transaction where there is
probable cause to believe that it was conducted for the purpose of avoiding the compliance of this Act; ora transaction related to or possibly related to a commission of any predicate offence, whether thecommission of such transaction is conducted once or more than once.
B. Sections 5-9
These sections address the criminal offence on money laundering. In recent decades, crimes havebecome more complicated and sophisticated. Local crimes have stepped up to the level of transnationalorganized crime with a lot of assets involved. The significant characteristics of a transnational organizedcrime are as below:(1) The division of labour: There are specialists, such as lawyers and accountants, involved in theirillegal activities so that these persons use their expertise to technically conceal or distort money
derived from illegitimate sources;(2) The commission of many crimes: transnational organized crime tends to violate many offencesat the same time. There is a cooperation and coordination network to support their group
activities as well;(3) Maximizing the profit: The objective or final goal of any transnational organized crime is tomaximize the profit or benefit to their organization. Most of the money or benefit from theseillegal activities will be transformed for the purpose of concealing the illegitimate source of
these funds.
The funds will be laundered so it is clean and then will be used to support their illegal activities again
and again as a revolving fund. Therefore, there are special measures prescribed in these sections in order66

125TH INTERNATIONAL TRAINING COURSE
VISITING EXPERTS PAPERS
to achieve more effective law enforcement in tackling transnational crimes. For example, (1) Transferringor transforming or disguising of properties related to an offence shall be deemed as having committed themoney laundering offence. (2) Whoever commits a money laundering offence, even if the crime wascommitted outside the Kingdom, shall receive the penalty within the Kingdom, if: (a) either the offenderor co-offender is a Thai national or resides in the Kingdom; (b) the offender is an alien and has taken
action to commit an offence in the Kingdom or is intended to have the consequence resulting there fromin the Kingdom, or the Royal Thai Government is an injured party; or (c) the offender is an alien whose
action is considered an offence in the State where the offence is committed under its jurisdiction, and ifthat individual appears in the Kingdom and is not extradited under the Extradition Act, Section 10 of thePenal Code shall apply mutatis mutandis.
C. Sections 13-23
These sections address the reporting of transactions and knowing your customer. Presently, there arethree types of transactions that financial institutions and persons that have legal transaction reporting
obligations have to report to the AMLO.
(1) Any cash transaction worth Bt 2 million or more.
(2) Any property transaction, including S.W.I.F.T. and Bahtnet transfers, worth Bt5 million or more
(Bahtnet transfers are a kind of domestic money transfer between financial institutions).
(3) Any suspicious transaction, there is no threshold. (For example, any cash transactions worth
almost 2 million baht, it may be 1.8 million baht or 1.9 million baht. It seems that thesetransactions have been made under two million baht in order to avoid reporting to the AMLOthat have been made more than one time a day in the same bank account number, or in adifferent bank account number but have the same bank account holder. In addition, thesetransactions have taken place over a short period of time.)
However, there is the exemption for the reporting of transactions if another party is in these six
categories:(1) Members of the Royal family.
(2) The public sector comprising the government, central government agencies, provincial and local
government administrations; state enterprises and public organizations.
(3) The Foundations belonging to members of the Royal family comprising (a) the Chaipattana
Foundation, (b) H. M. the Queen s Foundation for the Promotion of Supplementary Occupations
and Related Techniques, and (c) Sai Jai Thai Foundation.
(4) Transactions connected with property under the movable category being made with financial
institutions except for: (a) domestic money transfer transactions using the Bahtnet service underthe Bank of Thailand rules governing the Bahtnet service or inter-bank cross-country moneytransfers using the service of the Society for Worldwide Interbank Financial
Telecommunication, Limited Liability Co-operative Society (S.W.I.F.T. s.c.); (b) Transactions
connected with ships having tonnage from six tons or more, steam ships or motor boats having
tonnage from five tons or more, including rafts; (c) The transactions connected with vehicles,
instruments or any other mechanical equipment.
(5) The execution of loss insurance contracts except for compensation under loss insurance
contracts expecting to make payments of ten million baht or more.
(6) The registration of rights and juristic acts under the category of transfer to be public benefit landor the obtainment by possession or by prescription under Section 1382 or Section 1401 of the
Civil and Commercial Code.

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As for reporting forms (See Appendix C), there are seven transaction reporting forms as described as
below:(1) AMLO 1-01:
The form for any cash transaction reported by financial institutions.
(2) AMLO 1-02:
The form for any property transaction reported by financial institutions.
(3) AMLO 1-03:
The form for any suspicious transaction reported by financial institutions.
(4) AMLO 1-04-1: The form for any cash transaction reported by insurance or assurancecompanies.
(5) AMLO 1-04-2: The form for any property transaction reported by insurance or assurancecompanies.
(6) AMLO 1-04-3: The form for any suspicious transaction reported by insurance or assurancecompanies.
(7) AMLO 1-05:
The form for any suspicious transaction reported by investment consultants.
As for time periods for submitting the report to the AMLO, any cash or property transactions
occurring during the first 15 days and the latter of a month must be reported to AMLO during periods of
16th day-22nd day of that month and of 1st day-7th day of the next month, respectively. Meanwhile, any
suspicious transaction must be reported within seven days from the date having the reasonable suspicion.
Additionally, whoever handles any transaction with a financial institution has to present the citizen
identification card or other identification cards issued by any government agencies, according to ameasure on know your customer (KYC). All the above records must to be maintained for a period of five
years from the date that the account was closed or the termination of relations with the customer, or fromthe date that such transaction occurred, whichever is longer, unless the competent official notifies that
financial institution in writing to do otherwise.
D. Sections 24
This section addresses the composition of the Anti-Money Laundering Board who acts as the policy
maker on money laundering issues. The Board comprises members not more than 27 persons as below:(1) The Prime Minister; (Chairman)(2) Minister of Finance; (Vice-Chairman)(3) The Permanent Secretary of the Ministry of Justice;(4) The Attorney-General;(5) The Commissioner-General of the Royal Thai Police;(6) The Secretary-General of Office of the Narcotics Control Board;(7) The Director-General of the Fiscal Policy Office;(8) The Director-General of the Department of Insurance;(9) The Director-General of the Department of Lands;(10) The Director-General of the Customs Department;(11) The Director-General of the Revenue Department;(12) The Director-General of Department of the Treaties and Legal Affairs;(13) The Governor of the Bank of Thailand;(14) The President of the Thai Banking Association;(15) The Secretary-General of the Securities Exchange Commission;(16)-(24) Nine qualified experts appointed by the Cabinet from those who have expertise ineconomics, monetary affairs, finance, law or any other related fields beneficial to the
execution of this Act with the consent of the House of Representative and the Senate
respectively as a member of the Board;(25) The Secretary-general of AMLO as the Secretary of the Board(26)-(27) Two AMLO officials as the Assistant Secretaries of the Board.
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VISITING EXPERTS PAPERS
E. Section 40
At the beginning of the office s establishment, the AMLO was supervised by the Office of the Prime
Minister. Nonetheless, after the government restructuring on 2 October 2002, AMLO becomes an
independent agency, under the supervision of the Minister of Justice. Functions and responsibilities of the
AMLO are as follows:(1) Acting in accordance with the resolutions of the Board and the Transaction Committee, and tocarry out other administrative functions.
(2) Receiving transaction reports delivered in accordance with the requirements in chapter two, andto issue an acknowledgement of such report.
(3) Collecting, tracing, monitoring, studying, and analyzing reports or any other information related
to financial transactions.
(4) Collecting evidence in order to prosecute any violator under the provisions of this Act.
(5) Launching an education programme in order to disseminate information, educate and provide
training pertaining to the undertaking of this Act, or assist or support both public and private
sectors to launch such programmes.
(6) Carrying out other functions in accordance with the provisions of this Act or other laws.
There are a Bureau and four Divisions in AMLO. The organization chart can be illustrated as below:

Secretary-General

DeputySecretary-General(Compliance)

DeputySecretary-General(Administration)

Examination andAnalysis Bureau

Law Enforcement
Policy Division

Information andAnalysis Center (FIU)

Asset Management
Division

Gneral Affairs
Division69

RESOURCE MATERIAL SERIES No. 65

The head of the AMLO is the Secretary-General. There are two Deputy Secretary-Generals to assist
the Secretary-General in supervising and administrating AMLO tasks. The Examination and Analysis
Bureau is responsible for investigation and civil legal proceedings. The Information and Analysis Centre
acts as the AMLO s FIU. It is responsible for transaction reports collection and analysis. The Law
Enforcement Policy Division is responsible for anti-money laundering policy, training, public relations
and foreign affairs. The Asset Management Division is responsible for storing, maintaining and disposalof seized asset. The last one is the General Affairs Division; it is responsible for personnel and budget
managements.
F. Sections 48-59
These sections address the process of report examination and procedures concerning assets. The flow
chart starting from obtaining transaction reports through money laundering prosecution is shown as
below:

Transaction Reports

Reported by Financial
Institutions (see.13, 14)

Reported by Land
Offices (see.15)

Reported by Investment
Consultant (see.16)

Reported by Other
Channels (see.48, p.3)

AMLO (see.40)

Transaction Committee or
Secretary-General (see.34)
Transaction Restrain

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Temporary Asset Seizure

125TH INTERNATIONAL TRAINING COURSE
VISITING EXPERTS PAPERS

Probable Cause
3 days (sec.35)

Probable Evidence
10 days (sec.36)

Believable Cause
90 days (sec.48)

Secretary-General(sec.49)

Reporting to
AMLO Board(sec.37)

Reporting to
AMLO Board(sec.48, p.5)

Evidencing ofBelievable
Evidence
AMLO Board has to makethe decision within 30 days
otherwise, it shall follow
Public Prosecutor’s opinion.
(sec.49)

Inadequate
Evidence

Public Prosecutor(sec.49-55, 58-59)

Asset movement/transfer
Prevention

Requesting
court to order theprovisional
asset Forfeiture(sec.55)

Civil Court(sec.49-55, 59)
The ownership/transferee/ beneficiary
files a petition(sec.50)

Turning over the Asset Ownership to
the Government (sec.51, p.1)

Notice Announcement(sec.49, p.5)

Right Protection(sec.50-52, sec.57, p.4)

Proving a true owner/honest beneficiarywithin 1 year (sec.53)
Believable Proof
Returning of Asset(sec.53, sec.57, p.4)

Unbelievable Proof
Refusing to Return
the Asset (sec.51)

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RESOURCE MATERIAL SERIES No. 65

After the AMLO have received the transaction reports, from financial institutions, land offices,
investment consultants, other government agencies or even complaint letters, the AMLO will examine
and analyze received transaction reports. The investigation will then be performed as well.
If there are grounds to believe that such transaction is related to predicate offences or a money
laundering offence, an officer in charge will propose it to the Transaction Committee or the AMLO
Secretary-General (in case of emergency) for consideration. In case the Transaction Committee considers
that such transaction may be engaged with predicate offences or money laundering, the Transaction
Committee has the power to restrain all transactions of involved suspected persons for three working daysin case of having probable cause or for ten working days in case of having probable evidence.
Furthermore, if there is a believable reason that the asset related to an offence may be transferred,
distributed, moved or be transformed, the Transaction Committee has the power to seize such asset for
not exceeding 90 days. All transaction restrains and temporary asset seizures shall be reported to the
AMLO Board.
If the asset seized by the Transaction Committee Order or the Secretary-General Order is unsuitable tokeep in custody or will be more burdensome to the Government rather than the utilization thereof forother purposes, the Secretary-General may:
- Order those who have a vested right in the asset to maintain and utilize the asset with bail orsecurity;- Issue an order for a sale by auction and then keep the cash in a bank account;- Issue an order to utilize such asset for official purposes.
This is in order to prevent the devaluation of the asset occurring as a result of depreciation and of
inappropriate asset maintenance. In the meantime, if at last the court issues an order to return the asset tothe owner or holder or the vested interest recipient of the asset because the court believes that such person
has owned the asset honestly and/or with compensation, this process would reduce damage occurring tosuch good faith person as well.
In case there is evidence to believe that such asset is related to an offence, the Secretary-General will
forward the case to the public prosecutor to consider filing a petition to the court for the Government totake ownership of the asset. If the public prosecutor considers there is insufficient evidence to file apetition to the court, the case will be sent back to the Secretary-General for re-consideration and then to
re-submit to the public prosecutor again. In case the public prosecutor still considers there is not enoughevidence, the public prosecutor will urgently inform the AMLO Board via the Secretary-General formaking a decision. The AMLO Board has to finish the consideration within 30 days from the date ofreceipt. Otherwise, the case will follow the public prosecutor s opinion.
During processing the case to the court, if there is probable cause to believe that there may be atransfer, distribution or movement of any asset related to an offence, the Secretary-General could pass the
subject to the public prosecutor to file the petition to the court for the provisional asset forfeiture.
After receiving the petition to turn over the ownership of the asset to the Government from the publicprosecutor, the court will make an order to post a notice at the court and to publish the notice in a local
well-known newspaper for two consecutive days so that individuals who may claim ownership or have avested interest in the asset can file an objection to the petition to the court prior to the issuance of thecourt order. In case the court believes that the asset named in the petition is related to an offence and thepetition of the claimant has no merit, the court will give the confiscation order to turn the ownership of
the asset over to the Government. However, if the court believes that the petition of the claimant has
merit, the court may issue an order to protect the rights of the recipient claimant with or without
conditions.
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125TH INTERNATIONAL TRAINING COURSE
VISITING EXPERTS PAPERS
The petition for asset return must be sent to the court within 1 year from the date of the final court
confiscation order. Unless the claimant has to prove that he did not file the petition within one year
because he did not know of the notification or written notice of the Secretary-General. In case an owneror holder or a vested interest recipient of the asset can establish the validity of the claim to the satisfactionof the court, the court may order the return of the asset or may set any condition for claimant rights
protection.
Although the Anti-Money Laundering Act B.E.2542 (1999) has been in effect since 19 August 1999,
operations of the AMLO did not start until a year later on 27 October 2000. This was because thenecessary Ministerial Regulations needed to be completed.
During 27 October 2000 - 31 August 2003, the AMLO handled 190 cases. There are ten cases that the
court has already passed judgment. Meanwhile, most of them are in the stage of investigation andevidence gathering. Details are in the following Figure.
The Progression of Cases Proceeded under Anti-Money Laundering
Act B.E.2542 (1999) during 27 October 2000 - 31 August 2003,
Classified by Stage of Proceedings
At the Stage of Investigation and
Evidence Gathering, (29)At the Stage ofProsecutor
Proceedings, (10)Judgment

Judgment, (28)At the Stage of
Court Proceedings
At the Stage ofProsecutor Proceedings
At the Stage ofInvestigation and
Evidence Gathering
At the Stage of Court proceedings, (123)

The Majority of the 190 cases are drug offences which covers 178 cases, accounting for 93.68% of
total cases. The second are customs evasion offences which covers five cases, accounting for 2.63% of
total cases. Meanwhile, there have been no cases concerning blackmail and terrorism as yet. Details areillustrated the following Figure.
The Composition of Cases Handled by AMLO during
27 0ctober 2000 - 31 August 2003, Classified by Predicate Offence

No.of
cases
200
180

178

160
140
120
100
80
60
40
20
0

Narcotics

2

2

1

2

0

5

0

Sex
Trafficking

Cheating

Fraud

Malfeasancein OfficeBlackmailCustoms
EvasionTerrorism73

RESOURCE MATERIAL SERIES No. 65

During the period of 27 October 2000 to 31 August 2003, the AMLO seized assets pertaining topredicate offences and money laundering totalling approximately Bt 2,000 million. According to thefollowing Figure, most of them are in form of the attached bank accounts item that took a 49.15% stake,followed by the cash item that took a 19.33% stake.
The Proportion of Seized Assets during
27 0ctober 2000 - 31August 2003, Classified by Type of Asset
Vehicles
4.86%

Precious Stones
and Others 7.96%

Cash
19.33%

Premises
18.70%

Bank Accounts
49.15%

G. Sections 60-66
These sections address penalties in cases of violating or non-complying with the Act. Significant
points can be concluded as below:(1) An individual, who is found guilty of money laundering activities, will receive a jail term of one toten years and/or fined from Bt 20,000 to Bt 200,000. Meanwhile, a juristic person will be finedfrom Bt 200,000 to Bt 1 million;(2) If a person having a legal transaction reporting obligation fails to report, such person will receive ajail term not exceeding two years and/or fined from Bt50,000 to Bt500,000;(3) Whoever discloses any official secret concerning the proceedings according to the Act withoutauthorized legal power will receive a jail term not exceeding five years and/or fined not more than
Bt100,000.
Penalties will be doubled for a public official, member of the House of Representatives, member ofthe House of Senators, member of a Local Administration Council, Local Administrator, Government
Official, Employee of a local administration organization, or employee of an organization or a publicagency, member of a board, manager, or executive official, or employee of a state enterprise, or memberof a board, manager, or any individual who is responsible in the management of a financial institution, or
member of any organizations under the Constitution.
Penalties will be tripled for any member of the AMLO Board, or member of a Sub-Committee Board,or member of the Transaction Committee, or Secretary-General, or Deputy Secretary-General, orcompetent official, or public official empowered to act in accordance with this Act, who commits any
malfeasance in office, or malfeasance in judicial office.

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125TH INTERNATIONAL TRAINING COURSE
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II. FINANCIAL INTELLIGENCE UNIT (FIU)
For Thailand, the Financial Intelligence Unit or FIU is a part of the AMLO. It can be said that theInformation and Analysis Centre acts as the Thai FIU. Its main responsibilities can be described as thefollowing:(1) To receive and to keep electronic transaction reports derived from financial institutions and othersources;(2) To preliminary examine and to analyze transaction reports, particularly suspicious transaction
reports, and information concerned;(3) To act as the central authority of Thailand in exchanging of financial information, including signing
the Memorandum of Understanding (MOU) on financial information exchange, with other foreign
FIUs;(4) To set up and to maintain an AMLO database, computer and communication systems.
The Averaged Proportions of Received Transaction Reports Derived
from 27 October 2000 - 1 August 2003, Classified by Type of Report
5.72%
42.73%

51.55%Cash Transaction Report

Property Transaction Report

Suspicious Transaction Report

According to the above Figure, at present, almost all transaction reports have been sent to the AMLO
in the form of an electronic file. All the reports derived from 27 October 2000 - 31 August 2003
accumulated to 1,438,521 reports with a value of about Bt371 trillion. At the end of 31 August 2003, allthese reports roughly comprised 51.55 percent of property reported; followed by a 42.73 percent cash
reports and a 5.72 percent of suspicious transaction reports. These proportions are pretty constant fromtime to time as shown in the following figure.
The Proportions of Transaction Reports during
October 2002 - August 2003, Classified by Type of Report
60

52.95

52.67

52.47

52.44

52.23

52.12

52.06

51.85

51.66

51.55

51.55

41.33

41.63

41.80

41.83

42.63

42.12

42.17

42.40

42.57

42.70

42.73

50
40

% of Accumulated Cash Transaction Report% of Accumulated Property Transaction Report% of Accumulated Suspicious Transaction Report

30
20
10

5.72

5.70

5.73

5.73

5.74

5.75

5.75

5.72

5.76

5.75

5.72

g03
Au

3
l-0
Ju

03
nJu

M

ay

-0
3

3
r-0
Ap

ar03
M

03
bFe

03
nJa

2
c-0
De

02
No
v-

Oc

t-0

2

0

75

RESOURCE MATERIAL SERIES No. 65

Presently, the Information and Analysis Centre or FIU has 15 manpower persons. These persons are
divided into two groups: The first one is responsible for financial transaction analysis and informationexchange. The other is responsible for the establishment and maintenance of the database and computer
systems.
As for international cooperation, the AMLO is a member of the APG and the Egmont Groups. We
have constantly supported the groups activities and have cooperated and coordinated with member
countries with our full efforts. We also realize that information exchange is one of the significant factors
leading to law enforcement success. Hence, the AMLO, in association with the Ministry of Foreign
Affairs, had drafted the Memorandum of Understanding Concerning Cooperation in the Exchange ofFinancial Intelligence Related to Money Laundering based on the Egmont Group Model. This MOU
Draft was proposed to the Cabinet for consideration. On 12 February 2002, the Cabinet approved the
MOU Draft and also authorized the AMLO Secretary-General to sign the MOU with other foreign FIUs
on behalf of the AMLO. At the present time the AMLO has signed the mentioned MOU with six
countries as below:
1. Belgium
2. Brazil
3. Lebanon
4. Indonesia
5. Romania
6. United Kingdom

MOU effective 24 April 2002.
MOU effective 29 January 2003.
MOU effective 25 February 2003.
MOU effective 24 March 2003.
MOU effective 24 March 2003.
MOU effective 11 June 2003.

Additionally, there are many countries in the process of MOU negotiations such as Australia,
Malaysia, Russia and Korea.
As for non-MOU countries, we consider exchanging information with them on a case-by-case (basedon reciprocity) basis.

III. THE WAR AGAINST DRUGS IN THAILAND
Since the drug situation in Thailand has been deteriorating, there has been a drug epidemic in many
areas at both the village and community levels. The increasing of drug problems in the country tends togive more negative impacts to the economy, society and political affairs. This is partly as a result of
criminal adaptation operating as a network making law enforcement officers have more difficulty indetecting criminal activities.
The Government, therefore, issued many measures focusing on drug prevention and also put the drug
policy in the main policy on state stability. On 14 January 2003, the Prime Minister announced a War
against Drugs in Thailand. Consequently, government agencies concerning drug prevention andsuppression have been assigned to determine proactive measures on drug prevention and suppression,emphasizing asset forfeiture according to the Anti - Money Laundering Act B.E.2542 (1999). This
operation was first set for the period of 1 February - 30 April 2003 and then was extended to 10 August
2003.
In compliance with the said Government announcement, the AMLO as the central authority on money
laundering matters has converted the policy on the war against drugs into the operation plan in order to76

125TH INTERNATIONAL TRAINING COURSE
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support operations and tasks of both itself and other agencies concerned with drug elimination. The
objectives of the AMLO operation plan can be described as the following:
1. To prevent narcotic law violators, particularly, drug trafficking groups and to stop their illegal
activities;
2. To contribute to other government agencies operations by joining operations, and by exchanging
information leading to the seizure of assets and the arrest of offenders;
3. To convince people collaborate on drug prevention and suppression via public relations. For
example, educating people on money laundering law; allowing people to give information to theGovernment via a post box, telephone, letter or e-mail.
There are two expected outcomes of the AMLO operation plan as below:
1. People will collaborate with the Government in drug prevention and suppression;
2. The Government can seize more assets pertaining to drug activities. This action would put
pressure on handling drug activities and would also crack drug networks.
There are three stages for implementing measures according to the AMLO operation plan comprisingshort-term; medium-term and long-term sub-plans. Details are as follows:
A. Short-term Sub-plan
1. To conduct public relations in order to let people know the policy on drug prevention andsuppression. The AMLO will facilitate people in giving information via the said channels and keep
the names of informants in confidence. This measure took place from 15 January to 15 April 2003;
2. To follow financial movements along the Thai borders and urge the implementation of the measure
on reporting of taking-in and out of the country of foreign currency exceeding US$10,000 orequivalent;
3. To urge the start of the enactment of the Office of the Prime Minister s Regulation on Award
Payment concerning Asset Proceedings in Accordance with the Anti-Money Laundering Act
B.E.2542 (1999);
4. To urge the addition of terrorism into the Anti-Money Laundering Act B.E.2542 (1999) as theeighth predicate offence and criminalizing terrorist activities in the Penal Code;
5. To arrange 24-hour-standby officers for joint operations with other government agencies such as the
Bank of Thailand, the Royal Thai Police, Office of the Narcotics Control Board and Defence
Ministry. This measure took place from 20 January to 30 April 2003;
6. To urge the disposal of seized assets, particularly perishable assets, high maintenance cost assets andassets that become rapidly worthless.
B. Medium-term Sub-plan
1. To provide instant training courses on money laundering control to government officials andfinancial institutions officers;
2. To urge the signing of the MOU concerning information exchange with other FIUs;
3. To request more manpower for AMLO task expansion;
4. To study and propose the issuance of Orders or the amendment of laws/regulations concerningmoney laundering so that operations would be more rapid and flexible.
C. Long-term Sub-plan
1. To consider proposing additional predicate offences on money laundering;
2. To consider establishing AMLO Regional Offices and the construction of a warehouse for keeping
seized assets.

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By the end of the drug war policy period, Thailand was successful in dealing with drug barons andfinanciers. The Government seized billions bath of assets and put pressure on some drug dealers to giveup the drug cycle.
As for AMLO performance, we searched 100 suspected places and investigated 721 cases during theperiod of 1 February - 10 August 2003. Consequently, we seized assets worth almost Bt530 million andsome more after that. Two hundred and seventy cases were investigated in the Central Region, followed
by 191 cases in Bangkok, 107 cases in the Southern Region, 103 cases in the Northern Region and of 47
cases in the North Eastern Region. As for asset seizures derived from this operation, about Bt347 million
came from the Central Region cases, accounting for 65.53% of total seized assets of about Bt529 million.
It was followed by a Bt80.25 million in seized assets from the Northern Region cases, accounting for15.16% of total seized assets. (As shown in the following table and Figure.)
The Proportions of Asset Seizure Derived from the War against Drugs
Implementation, in Part of AMLO, Classified by Region
2.91%

6.06%

10.34%

15.16%

65.53%

BangkokCentralNorthern

North EasternSouthern

IV. THAILAND S IMPLEMENTATION OF CFT- SIGNING, RATIFICATION,
AND IMPLEMENTATION OF ANTI-TERRORISTS INSTRUMENTS
Thailand has intensified efforts to implement the United Nations resolutions related to counterterrorism. Thailand has been a party to three Conventions and one Protocol: The Convention on Offences
and Certain Other Acts Committed on Board Aircraft (1963), The Convention for the Suppression of
Unlawful Seizure of Aircraft (1970), and The Convention for the Suppression of Unlawful Acts against
the Safety of Civil Aviation, (1971), and The Protocol for the Suppression of Unlawful Acts of Violenceat Airports serving the International Civil Aviation Organization (ICAO) 1988.
The Minister of Foreign Affairs of Thailand signed the International Convention for the Suppressionof the Financing of Terrorism on 18 December 2001. Thailand expects to become a party to thisConvention by the end of 2002. The Thai Cabinet also resolved on 11 December 2001 to endorse, for
Thailand, to be a party to all the remaining conventions relating to counter-terrorism, pending thenecessary amendments to the domestic laws.
On 25 February 2002, the Cabinet resolved to set up the National Committee on Consideration of
Becoming a Party to International Conventions related to Counter-Terrorism to consider the remaining
eight related international conventions in order to speed up the process of becoming a party to these78

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conventions. These conventions include the following:1) Convention on the Marking of Plastic Explosives for the Purpose of Detection 1991
2) Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation 1988
3) Protocol for the Suppression of Unlawful Acts against the Safety of Fixed Platforms located on theContinental Shelf 1988
4) International Convention against the Taking of Hostages 1979
5) Convention on the Physical Protection of Nuclear Material 1980
6) Convention on the Prevention and Punishment of Crimes against Internationally Protected Persons,
including Diplomatic Agents 1973
7) International Convention for the Suppression of Terrorist Bombings 1998
8) International Convention for the Suppression of Financing of Terrorism 1999
Suppression of Terrorist Financing
Pursuant to the UN Security Council Resolutions 1267 (1999), 1269 (1999), 1333 (2001), and 1373
(2001) to counter-terrorism, Thailand issued circular letters to all related agencies to suppress thefinancing of terrorism and comply strictly with the UN resolutions and assigned the Council of State toconsider relevant domestic laws.
A. Prevention of Terrorist Financing
In 1999, Thailand established the Anti-Money Laundering Office (AMLO) to take effective
countermeasures against money laundering and other illegitimate financing. On 5 August 2003, the Thai
Cabinet approved the two draft amendments becoming effective 11 August 2003 onwards of the Penal
Code and the Anti-Money Laundering Act to prescribe financing of terrorism as a serious offence under
the Thai criminal law and to empower the AMLO to freeze terrorist funds as mandated by the UNSC
Resolution 1373.
On 27 October 2000, all financial institutions are required to report any transfer of funds in cash equal
to or greater than 2 million Baht, or transfer of assets equal to or greater than 5 million Baht, and any
suspicious financial transactions by their clients to the AMLO under the revised law. Also, the Exchange
Control Act B.E. 2485 requires all persons or entities to report any remittance in the amount equal to or
over US$ 10,000 to the Bank of Thailand and will soon have to report to the AMLO which maintains
these financial records in its electronic database.
Suppression of Terrorist Financing
The Anti-Money Laundering Office (AMLO) is now acting as the Thai national financial intelligenceunit (FIU) and has become a member of the EGMONT Group of Financial Intelligence Unit since 2001.
The AMLO is ready to sign an MOU with all 69 members of the EGMONT Group to help facilitate theexchange of information on terrorist financing and tracking of blacklisted groups.
B. Financial Action Task Force on Money Laundering (FATF) Special Recommendations andAction Plan on the Suppression of Terrorist Financing
Thailand currently completed the self-assessment against the FATF s eight special recommendations
on the suppression of terrorist financing.
C. Strengthening Aviation Security
According to the National Security Programme, Thailand is in the progress of revising its security
programme, measures, and procedures to provide tighter civil aviation security systems in airports and thescreening of passengers luggage by the end of the year 2002. Thailand has been active in conducting
training for emergency responses during aircraft hijacking situations among national authorities.
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D. Strengthening Maritime Security
Thailand is implementing recommendations by the International Maritime Organization (IMO) tostrengthen maritime security, including the installation of Automatic Identification System (AIS) on
newly built ships. Thailand welcomes technical and financial assistance from international sources to help
build the capacity of government agencies in improving maritime security. Thailand also continues topromote the strengthening of domestic coordination and international cooperation to suppress piracy andarmed robbery.
E. National Counter-Terrorism Measures
The Royal Thai Government set up the Committee of Counter-International Terrorism (COCIT)
chaired by the Prime Minister, to be a focal point for policy formulation. The Counter International
Terrorist Operations Centre (CITOC), directed by COCIT, is responsible for the coordination between thepolicy level and the operational units. Both agencies are mandated by the Policy on Counter International
Terrorism 1993, a broad framework proposed by the National Security Council and endorsed by the Thai
Cabinet of 1983.
In October 2000, the Directive Committee on the Prevention and Solution of Transnational Crime wasalso created as part of the Office of the National Security Council by the Prime Minister to provide
guidelines for coordination among agencies on transnational crime to suppress the movement of terroristgroups.
F. Progress on Energy Security
Thailand has undertaken a study on a National Oil Stockpiling Strategy to determine the feasibility
and viability of establishing an official oil stockpile. Thailand has given cooperation in improving theASEAN Petroleum Security Agreement (APSA) aiming to achieve an efficient regional energy security
mechanism. Also, Thailand is willing to participate in real time information sharing measures andactively exchange energy dialogue at both the intra-regional and inter-regional levels with a view tostrengthening energy security in the region as a whole.
G. Security of Information and Communication Infrastructures
The National Intelligence Agency of Thailand is entrusted with the coordinating intelligence on
counter-terrorism and maintains close communications with foreign governments to suppress terrorism.
Since 11th September 2001, the Agency has stepped up its effort to closely monitor international
developments related to counter-terrorism and checking background information of suspicious groups
travelling in and out of the country.
In April 2001, National Electronics and Computer Technology Center (NECTEC) established
ThaiCERT as an electronic discussion forum among experts, governmental agencies, and the private
sector on cyber security. ThaiCert, a five-year plan, provides online services of the computer emergency
response team with up-to-date bulletin/announcements on outbreaks of viruses, new security threats, acybersecurity laboratory, and training courses. ThaiCERT is now a well recognized body in Thailand.
On 20 July 2001, the National Information Technology Committee (NITC) chaired by the Prime
Minister, announced 3 sets of policy aimed at enhancing information security. These policies involve: 1)
The Communication Authority of Thailand to establish a formal agreement with its licensee ISPs to (a)synchronize their system clocks, (b) maintain customer access log (with caller ID data) for at least 3
months, (c) cooperate fully with the police in case of incidents, and (d) add a clause in their service
contract identifying customers responsibility regarding inappropriate use; 2) The Telephone
Organization of Thailand to maintain caller ID records for Internet investigation purposes; 3) The Royal
Thai Police to set up an Internet hotline for incident report and to investigate whether it is necessary and80125TH INTERNATIONAL TRAINING COURSE
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appropriate to regulate Internet cafes.
The Thai government plans to establish the National Information Security Centre to take action incyber security violations and to serve as the point of contact for other agencies.
H. Protecting Cross-Border Security and Enhancing Business Mobility
The Thai authorities responsible for protecting national security have created a watch list databaseof suspicious terrorists groups. The Ministry of Interior formulated policies for cross-border security andalerted rural provinces to prevent, arrest, and suppress terrorists from using Thailand as a safe haven.
The Ministry of Foreign Affairs and other relevant authorities are doing their utmost to ensure that theprocedure of issuing visas for entry and exit meets international standards and has taken steps to prevent
passport counterfeit. The Thai Cabinet approved the reduction in the number of countries entitled toexemption of visa requirements for a stay of up to 30 days from 57 countries to 37 countries and thenumber of countries entitled to a visa-on-arrival for a stay of up to 15 days from 96 countries to 15
countries.
I. Countering Biological Terrorism
Thailand has organized seminars and roundtable discussions on how to prevent the use of Weapons ofMass Destruction through biological and chemical forms and is in the process of developing an expert
group to stimulate the exchange of information among all relevant agencies.
The Office of the National Security Council of Thailand, with the US embassy, arranged the Weaponsof Mass Destruction (WMD) First Responder Training Programme in June 2001 and also jointly held the
Postal Chemical/Biological Incident Management Training Programme for relevant governmental
agencies during April 2002.
J. Strengthening International Cooperation
Thailand has made measurable progress in strengthening the regional and bilateral cooperation efforts
against counter-terrorism. At the regional level for instance, Thailand has been an active participant
within the ASEAN Regional Forum (ARF) to promote discussions to prevent terrorism and contribute tosecurity within the Asia-Pacific Region.
Thailand is in the process of acceding to the Agreement on Information Exchange and Establishmentof Communication Procedures to which the Philippines, Malaysia, Indonesia, and Cambodia are Parties.
The scope of cooperation under this Agreement includes better coordination through the exchange of
information and use of standard communication procedures, with a view to combating and preventing
international terrorism and transnational organized crime.

V. COMPLIANCE WITH FATF S (FINANCIAL ACTION TASK FORCE) EIGHTSPECIAL RECOMMENDATIONSIn addition to the International Convention for the suppression of the Financing of Terrorism 1999,
the United Nations Security Council passed Resolution 1373, which requires all UN member States toprevent and suppress the financing of terrorist acts and to freeze all assets linked to terrorists. Moreover,on October 2001, an emergency meeting was convened by the Financial Action Task Force [FATF] inWashington, D.C. FATF is an independent international body comprised of 29 country members and 18

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regional bodies and observer organizations, which has set the international standards for anti-money
laundering efforts through its issuance of the 40 Recommendations. Thailand participates in FATF
through its membership in the Asia Pacific Group [APG]. At this extraordinary meeting, FATF considered
what the worldwide response should be to combat terrorist financing. On October 31, 2001, FATF
announced a Special Set of eight Recommendations on Terrorist Financing to supplement the existing 40
Recommendations.
The new framework announced by the FATF to assist in detecting, preventing, and suppressing thefinancing of terrorism and terrorists acts in which Thailand has completed the self-assessment against the
FATF s eight Special Recommendations above is as follows:

VI. SUMMARY
Pursuant to the U.N. Security Council Resolutions 1267 (1999), 1269 (1999), 1333 (2001), and 1373
(2001), the Thai government issued instructions to all authorities concerned to comply with these U.N.
resolutions, including the freezing of funds or financial resources belonging to the Taliban and the AlQaeda network. The relevant authorities and the Council of State have considered relevant domestic laws
and regulations in order to make necessary amendments thereto in order to implement the Resolution infull.
On 5 August 2003, the Thai Cabinet approved the two draft amendments becoming effective 11
August 2003 onwards of the Penal Code and the Anti-Money Laundering Act to prescribe financing ofterrorism as a serious offence under the Thai criminal law and to empower the AMLO to freeze terrorist
funds as mandated by UNSC Resolution 1373.
In effect, all financial institutions in accordance with the Anti-Money Laundering Act are required topromptly report their suspicions of any transactions that may be linked, or related to, or are to be used forterrorism, terrorist acts or by terrorist organizations.
Intelligence and security agencies in Thailand have been on high alert since the 11 September
incident. Thai intelligence agencies, both civilian and military/law enforcement, have placed a highpriority on information sharing and networking with their foreign counterparts, especially the U.S.
agencies. The Anti-Money Laundering Office of Thailand has become a member of the EGMONTGroup since 2000. The membership has enabled the Office to have access to and exchange information
with other members.
Thailand also has the Mutual Assistance in Criminal Matters Act (1992), which forms a broad basis
for cooperation with other countries with regard to criminal matters i.e. taking testimony and statementsof persons; providing documents, records and evidence for prosecution and search and forfeiture ofproperties. The law is supplemented by Treaties of Mutual Assistance in Criminal Matters that Thailand
has with 5 countries: namely, the United States, Canada, the United Kingdom, France and Norway.
In conclusion, Thailand has adopted a firm policy in condemning terrorism in all forms andmanifestations. In practices, all authorities have done their utmost to ensure that Thailand will not be
used as a base for the commission of any terrorist acts against any other country and that terrorists will
never find a safe haven in Thailand.

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VII. THAILAND ASSESSMENT: EIGHT SPECIAL RECOMMENDATIONS
The framework announced by FATF to assist in detecting, preventing, and suppressing the financing
of terrorism and terrorists acts in which Thailand has completed the self-assessment against the FATF s
Eight Special Recommendations above is as follows:
A. Ratification and Implementation of UN Instruments
In complying with the related U.N. resolutions concerning actions taken on the Taliban Group inparticular resolutions 1267/1999, 1269/1999, the Thai Cabinet issued an instruction on 21 December
1999 to all authorities concerned to comply with these U.N. resolutions, including the freezing of transfer
funds or financial resources belonging to the Taliban.
On 5 August 2003, the Thai Cabinet approved the two draft amendments becoming effective 11
August 2003 onwards of the Penal Code and the Anti-Money Laundering Act to prescribe the financing
of terrorism as a serious offence under the Thai criminal law and to empower the AMLO to freeze
terrorist funds as mandated by the UNSC Resolution 1373.
In effect, all financial institutions in accordance with the Anti-Money Laundering Act are required topromptly report their suspicions if any transactions that may be linked, or related to, or are to be used forterrorism, terrorist acts or by terrorist organizations.
Thailand has been party to four conventions and protocols relating to terrorism concluded in theframework of the International Civil Aviation Organization (ICAO); namely, the Convention on Offences
and Certain Other Acts Committed on Board Aircraft (1963), the Convention for the Suppression of
Unlawful Seizure of Aircraft (1970), the Convention for the Suppression of Unlawful Acts against the
Safety of Civil Aviation (1971) and the Protocol for the Suppression of Unlawful Acts of Violence at
Airports Serving International Civil Aviation, Supplementary to the Convention for the Suppression of
Unlawful Acts against the Safety of Civil Aviation (1988).
The Minister of Foreign Affairs of Thailand signed the International Convention for the Suppressionof the Financing of Terrorism on 18 December 2001. As for the other seven conventions, the Cabinet
resolved on 11 December 2001 to endorse, in principle, for Thailand to be a party to all the remaining
conventions relating to terrorism pending the necessary amendments of domestic laws to enable fullcompliance with each convention.
On 25 February 2002, the Cabinet resolved to set up the National Committee on Consideration of
Becoming a Party to International Conventions relating to Terrorism as proposed by the Ministry ofForeign Affairs. This National Committee is empowered: to consider details of the remaining eight
related international conventions and to enact or amend relevant domestic laws in order to implement all
obligations under those conventions.
B. Criminalizing the Financing of Terrorism and Associated Money Laundering
In 1999, Thailand established the Anti-Money Laundering Office to take effective countermeasuresagainst money laundering and other illegitimate financing. According to the resolution of the Cabinet on
2 October 2001, the Council of State proposed the two draft amendments of the Penal Code and the
Money Laundering Act. The draft amendment of the Penal Code defines the scope of terrorism andprescribes the act of terrorism as a serious offence with severe punishments under Thai criminal law.
On 5 August 2003, the Thai Cabinet approved the two draft amendments becoming effective 11
August 2003 onwards.
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C. Freezing and Confiscating Terrorist Assets
At present, the existing domestic laws provide a legal basis for the Anti-Money Laundering Office, tofreeze the transfer of funds or financial resources of persons or entities suspected of committing or
facilitating the commission of terrorist acts. The amendments to the Penal Code and to the Money
Laundering Act are to make terrorist acts under the Penal Code an offence under the Money Laundering
Act. Accordingly, the laws empower the Anti-Money Laundering Office to freeze the transfer of funds or
financial resources of alleged terrorists and their accomplices.
D. Reporting Suspicious Transactions Related to Terrorism
All financial institutions in accordance with the Anti-Money Laundering Act are required to promptly
report their suspicions of any transactions that may be linked, or related to, or are to be used for terrorism,
terrorist acts or by terrorist organizations.
E. International Cooperation
Intelligence and security agencies in Thailand have been on high alert since the 11 September
incident. Thai intelligence agencies, both civilian and military/law enforcement, have placed a highpriority on information sharing and networking with their foreign counterparts, especially the U.S.
agencies. The Anti-Money Laundering Office of Thailand has been a member of the EGMONT Groupsince 2000. The membership has enabled the Office to have access to and exchange information withother members on the basis of the memorandum of understanding (MOU).
Thailand also has the Mutual Assistance in Criminal Matters Act (1992), which forms a broad basis
for cooperation with other countries with regard to criminal matters i.e. taking testimony and statementsof persons; providing documents, records and evidence for prosecution and search and forfeiture ofproperty. The law is supplemented by Treaties of Mutual Assistance in Criminal Matters that Thailand
has with five countries: namely, the United States, Canada, the United Kingdom, France and Norway.
At the regional level, Thailand has strengthened its counter-terrorism cooperation within theframework of ASEAN in accordance with the ASEAN leaders Declaration on Joint Action to Counter
Terrorism of November 2001. The Terrorism component of the Work Programme to Implement theASEAN Plan of Action to Combat Transnational Crime was adopted at the Special ASEAN Ministerial
Meeting on Terrorism, held in Kuala Lumpur on 20-21 May 2002. In addition, Thailand has expressed its
willingness to accede to the Trilateral Agreement on Information exchange and Establishment ofCommunication Procedures between Indonesia, Malaysia and the Philippines, which was sighed on 7
May 2002.
F. Alternative Remittance
Under the Exchange Control Act, all persons or legal entities that provide services for thetransmission of money or value must be approved by the Minister of Finance under the recommendationof the Bank of Thailand. Any persons or legal entities that carry out this service illegally are subjected tocivil or criminal sanctions under this law. Commercial banks are required to report all transfers made withforeign countries within three days of the transaction date. Any suspicious activity will be reported to theAnti-Money Laundering Office. A number of laws and regulations have been enacted to curb informal
activities. Education as well as measures such as a reduction of registered capital for money changers
have been provided to encourage informal agents to enter the system.
In addition, another measure against alternative means of cash remittances is to enact the ministerial
attachment to the Exchange Control Act on the declaration of the cash transition of foreign currency
equivalent to or over USD 10,000.

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G. Wire Transfers
Under the current Anti Money Laundering Act B.E. 2542, any person or legal entities that have theapproval to provide the services for the transmission of money must require their customers to provide
accurate and meaningful originator information. Furthermore, the Anti-Money Laundering Office
imposes legal obligations for such persons or entities to report certain kinds of transactions namely: (1) atransaction involving cash in an amount equal to or exceeding two million baht (2) a transaction involving
an asset equal to or exceeding five million baht; or (3) any suspicious transaction. If the moneytransmission service-providers fail to follow these instructions, they are subjected to substantial penalty
fines (Bt 300,000).

H. Non-Profit Organizations
The amendments to the Penal Code and the Anti-Money Laundering Act prevent the possible misuseof non-profit organizations by terrorists, and empower the relevant Thai authorities to effectively impede
terrorist activities and financing.
The legal regime of entities, particularly non-profit organization under the supervision of the Office of
National Cultural Commission, Ministry of Culture would be reviewed to prevent any misuse for terrorist
financing purposes.

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APPENDIX A
ANTI-MONEY LAUNDERING ACT OF B.E. 2542 ＊ (TRANSLATION)
Bhumibol Adulyadej, Rex.,
Given on the 10th Day of April B.E. 2542
Being the 54th Year of the Present Reign.
His Majesty King Bhumibol Adulyadej is graciously pleased to proclaim that:
Whereas it is expedient to enact a law on the anti-money laundering;This Act contains some provisions restricting the rights and liberties of an individual set forth in ofsection 29 together with section 35, section 37, section 48 and section 50 of the Constitution of theKingdom of Thailand, which was endorsed in the enactment of this law.
Be it, therefore, enacted by His Majesty the King, by and with the advice and consent of the National
Legislative Assembly as follows:
Section 1: This Act shall be cited the Anti-Money Laundering Act of B.E. 2542.
Section 2: This Act shall come into force on and after one hundred and twenty days of its publicationin the Government Gazette.◆
Section 3: In this Act,
Predicate offence means:(1) Offences relating to narcotics under the Narcotics Control Act or the Act on Measures for the
Suppression of Offenders in an Offence relating to Narcotics.
(2) Offences relating to sexuality under the Penal Code, in particular to sexual offences pertaining toprocuring, seducing, or taking or enticing for indecent acts on women or children in order togratify the sexual desire of another person, and offences relating to the trafficking in children or
minors, or offences under the Measures to Prevent and Suppress Trading of Women andChildren Act, or offences under the Prevention and Suppression of Prostitution Act, in particular
related to offences of procuring, seducing, enticing or kidnapping a person for the purpose of theprostitution trade, or offences relating to being an owner of a prostitution business, or an
operator, or a manager of a place of prostitution business, or supervising persons who commit
prostitution for trade in a prostitution business.
(3) Offences relating to cheating and fraud on the public under the Penal Code or offences pursuant
to the Fraudulent Loans and Swindles Act.
(4) Offences relating to embezzlement or cheating and fraud involving assets, or acts of dishonesty
or deception as described in the law governing commercial banks, or Act on the Undertaking of
Finance Business, Securities Business and Credit Financier Business, or Act governing
Securities and Stock Exchange, which is committed by a director, a manager or any person who* Translated by Pol. Maj. Gen. Peeraphan Prempooti, B.A. (Pol.Sc.), LL.B., LL.M., M.PA., Secretary-General,
Anti-Money Laundering Office. Translation is for the convenience of those who are not familiar with the Thai language. For
official purposes, only the Thai text will be relevant.
◆Published in the Government Gazette Vol.116, Part 29 Gor. On the 21st Day of April of B.E. 2542 (B.E.=Buddhist Era,
B.E.2542 is equivalent to A.D.1999).

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is in charge of or having any vested interest relating to the management of a financial institution.
(5) Offences relating to malfeasance in office, or malfeasance in judicial office under the Penal
Code, offences pertaining to the law governing public officials of a state enterprise or
government office, or offences pertaining to malfeasance or dishonesty in carrying out official
duties under other related laws.
(6) Offences relating to the commission of extortion or blackmail by a member of an unlawful secretsociety or organized criminal association as defined in the Penal Code.
(7) Offences relating to customs evasion under the Customs Act.
(8) Offences relating to terrorism under the Penal Code 1.
Transaction means any activity related to a juristic act, contract, or any commitment with otherpersons dealing with finance, business or involving assets;
Suspicious transaction means a transaction that is more complicated than the norm by which thattransaction is usually conducted, a transaction that lacks economic rationale; a transaction where there is
probable cause to believe that it was conducted for the purpose of avoiding the compliance of this Act; ora transaction related to or possibly related to a commission of any predicate offence, whether thecommission of such transaction is conducted once or more than once;
Asset involved in an offence means:(1) money or property derived from the commission of a predicate offence, or from aiding or abettingin the commission of a predicate offence;(2) money or property derived from the sale, distribution, or transfer in any manner of the money orasset in (1); or(3) fruits of the money and property in (1) or (2).
Notwithstanding how many times the asset in (1), (2), or (3) has been sold, distributed, transferred, ortransformed, or found in whosoever possession, or being transferred to whomever, or bearing inregistration or record under whosoever ownership.
Financial institutions means:(1) The Bank of Thailand under the Bank of Thailand Act, a commercial bank under the Commercial
Bank Act, or a bank established under the provisions of a specific law;(2) Finance business and credit finance companies under the Act on the Undertaking of FinanceBusiness, Securities Business and Credit Finance Business, and securities companies under the
Securities and Exchange Act;
(3) The Industrial Funds Corporation of Thailand under the Industrial Funds Corporation of Thailand
Act, and the small and medium enterprise funds corporation under the Small and Medium
Enterprise Funds Corporation Act;
(4) Life insurance companies under the Life Insurance Act, and casualty insurance companies under
the Casualties Insurance Act;
(5) Saving cooperative companies under the Savings Cooperatives Development Act; or(6) Any juristic person undertaking non-bank business related to finance as provided by the Ministerial
Regulations.
Board means the Anti-Money Laundering Board.

1

Executive Decrees published in the Government Gazette on August 11, B.E. 2546 (2003) to amend the Penal Code Section 135
and the Anti-Money Laundering Act of B.E. 2542 (1999) Section 3.

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Board Member means a member of the Anti-Money Laundering Board and includes its chairman.
Competent official means the person appointed by the Minister to act in accordance with this Act.
Secretary-general means the secretary-general of the Anti-Money Laundering Board.
Deputy Secretary-general means the Deputy Secretary-general of the Anti-Money Laundering
Board.
Office means the Anti-Money Laundering Office.
Minister means the Minister who is in charge of the enforcement of this Act.
Section 4: The Prime Minister shall be in charge of the enforcement of this Act and has the power toappoint competent officials, and to issue Ministerial Regulations, Rules, and Notifications in accordancewith this Act.
Such Ministerial Regulations, Rules, and Notifications shall come into force upon their publication in
the Government Gazette.

Chapter 1
General Provisions

Section 5: Whoever:(1) transfers, receives the transfer, or changes the form of an asset involved in the commission of an
offence, for the purpose of concealing or disguising the origin or source of that asset, or for the
purpose of assisting another person either before, during, or after the commission of an offence
to enable the offender to avoid the penalty or receive a lesser penalty for the predicate offence;or(2) acts by any manner which is designed to conceal or disguise the true nature, location, sale,transfer, or rights of ownership, of an asset involved in the commission of an offence shall bedeemed to have committed a money laundering offence.
Section 6: Whoever commits a money laundering offence, even if the offence is committed outside
the Kingdom, shall receive the penalty in the Kingdom, as provided in this Act, if:(1) either the offender or co-offender is a Thai national or resides in the Kingdom;(2) the offender is an alien and has taken action to commit an offence in the Kingdom or is intended
to have the consequence resulting therefrom in the Kingdom, or the Royal Thai Government is
an injured party; or(3) the offender is an alien whose action is considered an offence in the State where the offence iscommitted under its jurisdiction, and if that individual appears in the Kingdom and is notextradited under the Extradition Act, Section 10 of the Penal Code shall apply mutatis mutandis.
Section 7: Pursuant to the offence of money laundering, whoever undertakesone of the following acts
shall receive the same penalty as a principal offender of such offence:(1) aiding in the commission of an offence or abetting the offender, either before or during the88

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commission of the offence; or(2) procuring or supporting with money or assets, means of transportation, shelter, or any otherobject, or undertaking any other acts in order to assist the offender to escape or to avoid thepunishment from such offence, or to gain a benefit from the commission of an offence.
The Court may not impose a lesser punishment than that provided by the law for such offence where
the person who procures or provides money or assets, shelter, or hiding place in order to assist his or her
father, mother, son or daughter, wife or husband to avoid apprehension.
Section 8: Whoever attempts to commit an offence of money laundering shall receive the same
penalty as provided by the law for a successfully committed offence.
Section 9: Two or more persons who conspire to commit the offence of money laundering shall each
receive half of the punishment provided by the law for such offence.
If a money laundering offence is committed as a result of a conspiracy under the first paragraph, theconspirator shall receive the punishment provided by the law for such offence.
If a conspirator in the commission of an offence withdraws from the conspiracy or intervenes toprevent the commission of the offence and such committed offence does not achieve its end, theconspirator who withdrew from the conspiracy or intervened to prevent it shall receive the punishment
provided in the first paragraph.
If an offender, described in the first paragraph, admits to the conspiracy to a competent official prior
to the commission of the offence that he or she conspired to commit, the Court may or may not impose apenalty less severe than that provided by the law for such offence.
Section 10: Whoever, in their capacity as a public official, member of the House of Representatives,
member of the House of Senators, member of a Local Administration Council, Local Administrator,
Government Official, Employee of a local administration organization, or employee of an organization ora public agency, member of a board, manager, or executive official, or employee of a state enterprise, or
member of a board, manager, or any individual who is responsible in the management of financial
institution, or member of any organizations under the Constitution commits an offence under this chapter
shall receive two times the punishment provided by law for such offence.
Any Member of the Board, or Member of Sub-Committee, or Member of the Transaction Committee,
or Secretary-general, or Deputy Secretary-general, or competent official empowered to act in accordancewith this Act, who commits an offence under this chapter shall receive three times the punishment
provided by law for such offence.
Section 11: Any Member of the Board, or Member of Sub-Committee Board, or Member of theTransaction Committee, or Secretary-general, or Deputy Secretary-general, or competent official, or
public official empowered to act in accordance with this Act, who commits any malfeasance in office, ormalfeasance in judicial office as provided in the Penal Code in connection with the commission of an
offence provided in this chapter shall receive three times the penalty provided by law for such offence.
Section 12: For purposes of this Act, Member of the Board, Member of a Sub-Committee,
Transaction Committee, Secretary-general, Deputy Secretary-general and competent official are also
competent officials under the Penal Code.

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Chapter 2
Reporting and Identification

Section 13: Whenever a transaction takes place at a financial institution, the financial institution has
a responsibility to file a report of that transaction with the Office, if any transaction appears to be one of
the following:(1) A transaction involving cash in an amount equal to or exceeding the significant amount set forthin the Ministerial Regulations;(2) A transaction involving an asset equal to or exceeding the significant value set forth in the
Ministerial Regulation; or(3) Any suspicious transaction, whether or not it is in accordance with (1) or (2). A financial
institution has a continuing obligation following the filing of a report to provide to the Officewithout delay any additional facts or significant information about which it becomes aware thatis relevant to the reported transaction or to confirm or deny the original information about thereported transaction.
Section 14: Where a financial institution subsequently obtains probable cause to believe that any
transaction previously carried out which was not reported in accordance with section 13 appears to havebeen a transaction that financial institution must report in accordance with section 13, then the financial
institution shall report that transaction to the Office without delay.
Section 15: The Land Office of Bangkok Metropolitan, the Provincial Land Office, the Branch ofLand Office, and the District Land Office, have a duty to report to the Office whenever a request forregistration of rights and juristic act involving an immovable asset when a financial institution is not
involved as any party to such request, and the transaction appears to involve any of the following:(1) When payment is made in cash exceeding the significant amount as set forth in the Ministerial
Regulations;(2) When an immovable asset has an estimated value on the registration of rights and juristic act inan amount exceeding the significant amount set forth in the Ministerial Regulations, except in
the case of transfer by succession to a statutory heir; or(3) When it is a suspicious transaction.
Section 16: A person who is engaged in a business of operating, or advising to engage in investment
transactions, or the movement of capital has a duty to report to the Office when there is probable cause tobelieve that such transaction may relate to asset involved in a commission of offence or is a suspicioustransaction.
A person identified in the first paragraph who is subject to the reporting rules under this section has acontinuing obligation following the filing of a report to provide to the Office without delay any additional
facts or significant information about which it becomes aware that is relevant to the reported transaction
or to confirm or deny the original information about the reported transaction.
Section 17: The reporting under the provisions of section 13, 14, 15 and 16 shall be made inaccordance with the format, interval, guidelines and methods prescribed in the Ministerial Regulations.
Section 18: Any transaction that the Minister deems fit to exempt from the reporting requirement
under the provision of section 13, 15 and 16 shall be in conformity with the Ministerial Regulations.

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Section 19: A report submitted in accordance with section 13, 14, 15 and 16 in good faith by any
individual capacity if it appears to cause damage to any person, that individual shall not be liable for any
damage.
Section 20: A financial institution shall require all customers to show identification prior to
conducting any transaction on behalf of a customer, as provided by Ministerial Regulations, unless that
customer has previously identified. The customer identification under the first paragraph shall be inaccordance with the procedures as the Minister may prescribe.
Section 21: A financial institution that conducts a transaction described in section 13 shall requestthat the customer provide all facts in connection with such transaction. If a customer refuses to fill out aform to provide all facts in accordance with the first paragraph, the financial institution shall record such
refusal and report to the Office immediately. The fact and information requirement under the first andsecond paragraphs shall be the form, content, guidelines, and methods prescribed in the Ministerial
Regulations.
Section 22: Financial institution shall maintain all customer identification records under section 20,
and a record of facts and information under section 21 for a period of five years from the date that theaccount was closed or the termination of relations with the customer, or from the date that suchtransaction occurred, whichever is longer, unless the competent official notifies that financial institution
in writing to do otherwise.
Section 23: The provisions in this chapter shall not apply to the Bank of Thailand governed by the
Bank of Thailand Act.

Chapter 3
Anti-Money Laundering Board

Section 24: There shall be an Anti-Money Laundering Board consisting of the Prime Minister as
Chairman, Minister of Finance as Vice-Chairman, the Permanent Secretary of the Ministry of Justice, theAttorney-General, the Commissioner-General of the Royal Thai Police, the Secretary-general of the
Office of Narcotics Control Board, the Director-General of the Fiscal Policy Office, the Director-Generalof the Department of Insurance, the Director-General of the Department of Lands, the Director-General of
the Customs Department, the Director-General of the Revenue Department, the Director-General of
Department of the Treaties and Legal Affairs, the Governor of the Bank of Thailand, the President of theThai Banking Association; the Secretary-general of the Securities Exchange Commission and nine
qualified experts appointed by the Cabinet from those who have expertise in economics, monetary affairs,
finance, law or any other related fields beneficial to the execution of this Act with the consent of theHouse of Representative and the Senate respectively as a member of the Board and the Secretary-generalof the Office as Secretary of the Board.
The Board shall appoint no more than two government officials in the Office as the Assistant
Secretary of the Board.
In case where the Chairman or Member of the Board in paragraph one can not attend the board
meeting, one shall delegate a deputy who is knowledgeable relating to duties of the Board to attend thatparticular meeting.

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Section 25: The Board shall have the duty to:(1) propose to the Cabinet measures to combat money laundering;(2) recommend to the Minister Ministerial Regulations, Rules and Notifications to enforce this Act;(3) set rules pertaining to the custody, maintenance, sale by public auction, optimum usage, anddamage evaluation, and depreciation of the assets in accordance with section 57;(4) promote cooperation from the public in providing information to combat money laundering;(5) monitor and evaluate the effectiveness of the enforcement of this Act; and(6) perform other duties as provided in this Act or in other laws.
Section 26: The qualified experts appointed by the Cabinet shall serve a term of four years from thedate of appointment, and shall be eligible to serve only one term.
Section 27: Apart from the term limit set forth in section 26. The appointment of a qualified expert
by the Cabinet shall terminate from office upon:(1) death;(2) resignation;(3) being removed by the Cabinet by the consent of the House of Representative and the Senate
respectively;(4) being a bankrupt;(5) being an incompetent or quasi-incompetent person;(6) being imprisoned by a final judgement to a term of imprisonment.
If a qualified expert is appointed during the term, whether as an addition or a replacement, that
qualified expert shall serve the remainder of that term.
Section 28: If a qualified expert has fully served the term and no new qualified expert been
appointed, such qualified expert shall remain in office until such time as a new qualified expert has been
appointed.
Section 29: The meeting of the Board shall require of no less than one half of member of the Boardin the presence to constitute a quorum.
The Chairman of the Board shall chair the meeting. If the Chairman is unable to attend the meeting or
cannot execute the duty, then the Vice-Chairman shall chair the meeting. If the Vice-Chairman is unable
to attend the meeting or cannot execute the duty, the members of the Board who are present shall electone of the members of the Board to chair the meeting.
A resolution of the meeting shall pass by a majority of the votes cast. Each member of the Board
shall have one vote. In the event of a tie, the Chairman shall cast an additional vote to be the deciding
vote.
Except, however, a decision by the Arbitrary Sub-Committee under resolution to pass underparagraph three of section 49 shall require a majority of two third of the votes cast of participating
members of the Sub-Committee.
Section 30: The Board may appoint a Sub-Committee to study and submit recommendations on any
particular subject, or to undertake any action on behalf of the Board. Section 29 shall apply mutatis
mutandis to any meeting of the Sub-Committee.
Section 31: Members of the Board and Members of the Sub-Committee may receive remuneration as
determined by the Cabinet.

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Chapter 4
Transaction Committee

Section 32: There shall be a Transaction Committee consisting of the Secretary-general as the
Chairman of the Committee and four other qualified experts whom the Board appointed as members.
Qualification or disqualification of the Transaction Committee shall be as provided by the Minister s
Announcement.A member of the Transaction Committee appointed by the Board shall serve a two year
term. A member of the Transaction Committee whose term is ended may be reappointed and theprovisions of section 27 and 28 shall apply mutatis mutandis, except that termination from office inaccordance with section 27 (3) shall not apply.
Section 33: The meetings of the Transaction Committee shall be in accordance with section 29
mutatis mutandis.
Section 34: The Transaction Committee has the following duties:(1) to audit transactions or assets involved in the commission of an Offence;(2) to restrain a transaction under section 35 or 36;(3) to restrain or seize in accordance with section 48;(4) to report to the Board on its work performed under this Act; and(5) to undertake other functions designated by the Board.
Section 35: In case where there is probable cause that any transaction is involved or may be involvedin the commission of a money laundering offence, the Transaction Committee shall have the power toissue a written order to restrain such transaction, within the time prescribed but not exceeding threebusiness days.
In the case where it is necessary or in an emergency, the Secretary-general shall have the power toissue an order to restrain a transaction in accordance with the provisions under the first paragraph, andthen report to the Transaction Committee.
Section 36: In the case where there is evidence to believe that any transaction is involved or may be
involved in the commission of a money laundering offence, the Transaction Committee shall have thepower to issue a written order to restrain that transaction temporarily within the time prescribed but notexceeding ten business days.
Section 37: When the Transaction Committee or the Secretary-general, whichever it may be, issues a
restraining order in accordance with section 35 or 36, then the Transaction Committee shall file a reportto the Board.
Section 38: In order to undertake a duty in accordance with this Act, the Transaction Committee, theSecretary-general and competent official designated by the Secretary-general in writing shall have thepower to do the following:(1) inquire in writing or compel a financial institution, government agency, organization, or public
office or state enterprise, whichever is the case, to send a relevant official to testify, to submit awritten explanation, or to submit an account, document or any other evidence for examination orconsideration;(2) issue a written inquiry or summons anyone to appear to testify, to submit an explanation note, or
account, document or any evidence for examination or consideration;(3) have access into a residence, place, or any transporting conveyance in which there is probable93

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cause to suspect that any asset involved in the commission of an offence, or evidence involvedin a money laundering offence is hidden or kept, in order to search or for the purpose of tracing,monitoring, seizing or attaching any asset or any evidence. Such access is authorized when it is
too late to obtain a search warrant and the asset or evidence may be moved, concealed,
destroyed, or transformed from its origin nature of appearance.
In the performance of duty under (3), the competent official designated under paragraph (1) shallproduce his or her identification card and assignment document to the individual concerned.
The identification card according to paragraph (2) shall be in the form prescribed by the Minister,which is published in the Government Gazette.
The Secretary-general shall be responsible for the custody and use of all information derived fromtestimony, written explanation, account, document, or any other evidence which has the characteristic of
being specific information of an individual, financial institution, government agency, governmentorganization or state enterprise.
Section 39: Members of the Transaction Committee may receive remuneration as prescribed by the
Cabinet.

Chapter 5
The Office of Anti-Money Laundering

Section 40: There shall be an Office of Anti-Money Laundering in the Office of the Prime Minister
which shall have the power to:(1) act in accordance with the resolutions of the Board and the Transaction Committee, and to carryout other administrative functions;(2) receive transaction reports which are delivered in accordance with the requirements in chapter
two, and to issue an acknowledgement of such report;(3) collect, trace, monitor, study, and to analyze reports or any other information related to financialtransactions;(4) collect evidence in order to prosecute any violator under the provisions of this Act;(5) launch an education programme in order to disseminate information, educate and provide
training pertaining to the undertaking of this Act, or assist or support both public and private
sectors to launch such programmes; and(6) carry out other functions in accordance with the provisions of this Act or other laws.
Section 41: There shall be a Secretary-general who has the duty and responsibility to report directly
to the Prime Minister, to oversee the performance of the Office in general, and to supervise the public
official of the Office. There shall be a Deputy secretary-general to assist the overseeing and supervisingof the performance of the Office.
Section 42: The Secretary-general shall be a civil servant who is appointed by His Majesty the Kingby and with the advice and consent of the Cabinet and the House of Representatives and the Senate
respectively.
Section 43: The Secretary-general shall have the qualifications as follows:(1) knowledge and expertise in the field of economics, finance, fiscal policy or law;(2) be a Deputy secretary-general or a civil servant at a position classification level not less than orequivalent to a Director-General;
94125TH INTERNATIONAL TRAINING COURSE
VISITING EXPERTS PAPERS(3) not be a member of any Board of any state enterprise or any other government agency; and(4) not be a member of the board, or manager, or consultant, or hold any similar position or haveany vested interest in any limited partnership, company, financial institution, or work in any
profession, vocation, or any other establishment which is in contradiction to this Act.
Section 44: The Secretary-general shall hold office for a term of four years from the date of the orderof His Majesty the King.
The Secretary-general shall not be reappointed upon completion of the term served.
Section 45: Notwithstanding serving out the term as provided in section 44, the Secretary-generalshall be terminated from the position in the case of:(1) death;(2) resignation;(3) disqualification in accordance with section 43; or(4) by the order of His Majesty the King, by and with the advice of the cabinet and the House ofRepresentative and the Senate respectively.
Section 46: Where there is probable cause to believe that a customer s account at a financial
institution, equipment or communication device, or any computer has been used or may be used for the
purpose of the commission of a money laundering offence, the competent official, designated in writingby the Secretary-general, shall submit a petition to the Civil Court to issue a warrant to have access to
obtain information from the account, communication data, or computer files.
In accordance with paragraph one, the Court may authorize the competent official who submits such
petition to use any appropriate instrument or access device. The warrant in each endorsement shall not
exceed ninety days.
Once the Court has issued a warrant in accordance with paragraph one or two, the individual
concerned with the account, the communication data or the computer file shall cooperate to comply withthe provisions of this section.
Section 47: The Office of Anti-Money Laundering shall submit an annual performance report to the
Cabinet. The annual performance report shall contain essential details including, but not limited to:(1) a report on the management of assets and all proceedings in accordance with this Act;(2) problems or obstacles encountered in carrying out the responsibilities of the Office; and(3) a report on fact or observations made in carrying out the responsibilities of the Office, including
opinions and recommendations.
The Cabinet shall submit the annual performance report described in paragraph one together with the
Cabinet s observations to the House of Representative and the Senate.

Chapter 6
The Asset Management

Section 48: In examining reports and data on financial transactions, if there is probable cause tobelieve that there may be a transfer, distribution, placement, layering, or concealment of any asset related
to the commission of an offence, the Transaction Committee shall have the power to restrain or seize that
asset temporarily for a period not exceeding ninety days.
In case where it is necessary or in an emergency the Secretary-general may issue an order to restrain
or seize such asset in accordance with paragraph one and then report to the Transaction Committee.
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The examination of reports and transaction data in accordance with paragraph one shall be asprescribed in the ministerial regulations.
Any individual who conducts any transaction or an individual who has a vested interest in the asset
being seized or restrained shall produce evidence to prove that the money and asset in the transaction are
not related to the commission of an offence, so that the restraint or seizure order can be withdrawn. The
proceeding and guidelines shall be administered in accordance with the Ministerial Regulations.
When the Transaction Committee or the Secretary-general, whoever it may be, orders the restraint or
seizure of an asset, or withdraws such an order, then the Transaction Committee shall report to the Board.
Section 49: Under the provisions of paragraph one of section 48, in the case where there is evidence
to believe that an asset is related to the commission of an offence, the Secretary-general shall forward thecase to the prosecutor for consideration to file a petition to the Court to order the forfeiture of such asset
for the benefit of the State without delay.
In a case where the prosecutor deems that the evidence is inadequate to file a petition to the Court for
the forfeiture of the asset, in whole or in part, the prosecutor shall inform the Secretary-general of suchinadequate evidence so that he may proceed to obtain additional information.
The Secretary-general shall proceed without delay in response to paragraph two and submit additional
evidence for the prosecutor to reconsider. Should the prosecutor deem that the evidence is still inadequate
to file a petition to the Court for the forfeiture of an asset in whole or in part, the prosecutor shall informthe Secretary-general in order to forward the matter to Arbitrary Committee for consideration. The
Arbitration Committee shall deliver the decision within thirty days as from the date of receipt from theSecretary-general.
The prosecutor and the Secretary-general shall follow the decision of the Arbitrary Committee. When
the Arbitrary Committee fails to issue a decision within the prescribed time limit, then the prosecutor s
determination will be final.Where the prosecutor s determination pertaining to paragraph three has been
fulfilled then it shall be final. There shall be no more motion against that individual in connection withthe same asset unless new crucial evidence has arisen to convince the Court to order the forfeiture of that
individual asset to the State.
When the prosecutor has filed a petition to the Court, the Court shall order that a notice be posted at
the Court and have it published for two consecutive days in a local, well known, newspaper so that
individuals who may claim ownership or have a vested interest in the asset can file an objection to thepetition to the Court prior to the issuance of an order. In addition, the Court shall send a copy of such
notice to the Secretary-general to post at the Office and at the police station where the asset is located. If
there is evidence of an individual who may claim ownership or has a vested interest in the asset then the
Secretary-general shall send a notice to that individual and inform him/her of their rights. The notice shallbe delivered via certified registered mail to the individual s last known address.
Notwithstanding paragraph one, under a probable cause to act in order to protect the right of acomplainant in the predicate offence, the Secretary-general may forward the matter to the competent
official who is investigating the commission of that offence on the undertaking of such law to protect theright of the victim.
Section 50: An individual, who claims ownership of the asset which the prosecutor has filed apetition to forfeit to the State in accordance with section 49, may file a petition before the Court issues anorder under section 51 showing to the Court that:(1) he or she is the true owner and the asset is not related to any offence or(2) he or she has received the transfer of ownership honestly and with compensation, or he has
acquired the asset honestly and morally, or by charity.
An individual who claims to have a vested interest in an asset on which the prosecutor has filed apetition to forfeit to the State under section 49 may file a petition for a protection of his rights before the96125TH INTERNATIONAL TRAINING COURSE
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Court issues an order. The petitioner must satisfy the Court that he or she is an honest recipient and abona fide purchaser or that he or she has acquired the interest honestly and morally, or by charity.
Section 51: If, after investigating the petition of the prosecutor in accordance with section 49, theCourt believes that the asset named in the petition is related to, an offence and the petition of the claimant
filed pursuant to, section 50, paragraph one, has no merit, the Court shall order the forfeiture of the asset
to the State.
According to this section, if the claimant in section 50, paragraph one is related to or used to berelated to any person who committed the predicate offence or the offence of money laundering, thepresumption shall be that the money or asset is related to an offence or has been transferred dishonestly,
whichever the case may be.
Section 52: Where the Court has ordered the forfeiture of the asset to the State according to section
51, and it subsequently has inquired and believes that the petition of the claimant in section 50 paragraph
two has merit, the Court may issue an order to protect the rights of the recipient claimant with or without
conditions.
According to this section, if the claimant of being a recipient in section 50 paragraph two is related toor used to be related to any person who committed the predicate offence or the offence of money
laundering, the presumption shall be that the claimant has acquired his vested interest in possession
dishonestly.
Section 53: If, after the Court has ordered the forfeiture of the asset to the State in accordance withsection 51, the claimant, either an owner or holder or a vested interest recipient of that asset, can establish
the validity of his claim under section 50 to the satisfaction of the Court, the Court may order the returnof the asset or may set any condition in order to protect the rights of the claimant. If the asset can not be
returned or protected any right, then the claimant shall be entitled to compensation or damage, whichever
the case may be.
The petition under paragraph one shall be filed within one year from the date of the final Court orderof forfeiture. The claimant has to prove that he could have filed the petition under section 50 because heor she did not know of the notification or written notice of the Secretary-general or if with any otherreasons.
The Court shall inform the Secretary-general regarding the petition before issuing any order underparagraph one. The public prosecutor may object to the claimants.
Section 54: In the case that the Court has ordered the forfeiture of an asset to the State according tosection 51, if there are additional assets related to the offence, the public prosecutor may file a motion
requesting the Court to order the forfeiture of those assets to the State.
The provisions of this chapter shall apply mutatis mutandis.
Section 55: After the public prosecutor has filed a petition with the Courtunder section 49, if there is
probable cause to believe that there may be a transfer, distribution, placement of any asset related to an
offence, the Secretary-general may submit the facts to the public prosecutor to file a petition to the Court
to order a provisional seizure or restraint of the asset prior to issuing the order under section 51. The
Court shall consider such petition immediately. If the petition is supported by probable cause, the Court
shall issue the order without delay.
Section 56: Once the Transaction Committee or the Secretary-general, as the case may be, issues anorder to seize or restrain any asset under section 48, the designated competent official shall execute theseizure or restraining order. There will be a report of the execution along with the assessment of the value
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and condition of such asset.
The seizure or restraint of the asset, and the assessment of the value of the asset seized shall be inaccordance with the rules, procedure and conditions prescribed in the Ministerial Regulations; provided
that, the Civil Procedure Code shall apply mutatis mutandis.
Section 57: The custody and maintenance of the asset seized or restrained by the order of theTransaction Committee or the Secretary-general, as the case may be, shall be in accordance with theRules prescribed by the Board.
In the case that the asset under paragraph one is unsuitable to keep in custody, or there will be moreburden to the Government rather than the utilization thereof for other purposes, the Secretary-general may
order those who have a vested interest in the asset to maintain and utilize the asset and may require any
collateral or security assurance. There will be a report to the Board if such asset is ordered to be sold byauction or used for official purposes.
The custody, maintenance, utilization of forfeited assets by those who have a vested interest, or a saleby auction, or the utilization of the asset for official purposes under paragraph two shall be in accordancewith the Rules prescribed by the Board.
If it appears thereafter that the asset sold by auction, or utilized for official purposes under paragraphtwo, was not the asset involved in the commission of an offence, the Board shall return the asset to therightful owner or legal custodian together with compensation and the depreciation value. If the seized
asset can not be returned, then the restitution shall apply in an amount equivalent to the price of the seized
asset as assessed on the day of seizure or restraint on that asset or the value realized at the auction,
whichever the case may be. The rightful owner or custodian person shall receive an interest based on theamount of the restitution or compensation at the highest rate of the fixed deposit savings account of theGovernment Savings Bank, as the case may be.
The assessment of the compensation and the depreciation value under paragraph four shall be inaccordance with the Rules prescribed by the Board.
Section 58: Where the asset involved in the commission of an offence is subject to another legal
process which has not yet commenced or is pending or if it would be more effective to proceed under thisAct, then the Government shall proceed as provided in this Act.
Section 59: The Court proceeding under this chapter shall be filed with the civil court and the Civil
and Commercial Code shall apply mutatis mutandis.
The prosecutor is exempted from all court fees in the undertaking of all proceedings.

Chapter 7
Penal Provisions

Section 60: Any individual who is found guilty of the crime of money laundering shall receive aterm of imprisonment of one to ten years, or a fine of twenty thousand to two hundred thousand Baht, or
both.
Section 61: Any juristic person which is found guilty of an offence under sections 5, 7, 8, or 9 shallreceive a fine in the amount of two hundred thousand to a million Baht.
A Director, Manager, or any person responsible for the operation of the juristic person under the firstparagraph which is found guilty of an offence shall receive a term of imprisonment of one to ten years, ora fine of twenty thousand to two hundred thousand Baht, or both, unless he can prove that he had no part98

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in the commission of such offence of the juristic person.
Section 62:Any individual who is found guilty of an offence under sections 13, 14, 16, 20, 21, 22,
35, or 36 shall receive a fine not exceeding three hundred thousand Baht.
Section 63: Whoever reports or makes a statement according to section 13,14, 16, or 21 paragraph
two with the assertion of a falsehood or the concealment of the facts which should be revealed to theofficials shall receive a term of imprisonment not exceeding two years, or a fine of fifty thousand to five
hundred thousand Baht, or both.
Section 64: Any individual who fails to appear or refuses to testify, or to submit an explanation inwriting, or to submit the account document, or evidence required under section 38 (1) or (2), or who
obstructs, or fails to cooperate under section 38 (3) shall receive a term of imprisonment not exceeding
one year, or a fine not exceeding twenty thousand Baht, or both.
Any individual who acts by any means to leak restricted information to others under section 38
paragraph four, except in the course of doing his/her job or according to the law, shall receive the penalty
set forth in paragraph one.
Section 65: Any person who diverts, damages, destroys, conceals, takes away, loses or renders
useless the document, memoranda, information, or asset which has been ordered seized or restrained by
official action, or which one knows or should have known will be forfeited to the State according to thisAct, shall receive a term of imprisonment not exceeding three years, or a fine not exceeding threehundred thousand Baht, or both.
Section 66: If any person who knows or should have known confidential government information inproceeding according to this Act, acts in any means to let others know or may have the knowledge of that
confidential information, except in the course of conducting his/her work or according to the law, he or
she shall receive a term of imprisonment not exceeding five years, or a fine not exceeding one hundred
thousand Baht, or both.

Countersigned by
Chuan Leekpai
Prime Minister

Principle and Rationale Accompanying
The Anti-Money Laundering Act of B.E. 2542

Principle
To enact a law to prohibit money laundering
Rationale
Presently offenders who violate certain laws have benefited from money or assets obtained from theoffences via money laundering.
In addition, money laundering can enable these offenders to use this money or assets to further their99

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criminal activity and to commit other offences.
This situation has caused problems for law enforcement officers.
Existing laws are not adequate to suppress either money laundering or illegal use of crime-relatedmoney and assets.
Thus, in order to cut off this vicious circle of crimes, measures to effectively combat money
laundering must be established.
Therefore, this law must be enacted.

APPENDIX B
AMENDMENTS OF THE PENAL CODE AND ANTI-MONEY LAUNDERING
ACT
To comply with UN Resolution 1373, On August 5, 2003, Thailand has passed two major Executive
Decrees to amend the Penal Code and the Anti-Money Laundering Act becoming effective from August
11, 2003 onwards.
1 The Amendments to the Penal Code Section 135
Section 135/1
Any person, committing any of the criminal offences stated below:
1. using force to cause death, damage, or serious injury to the life and freedom of an individual;
2. causing serious damage to a public transportation system, a telecommunication system, or an
infrastructure facility of public use; or
3. causing damage to property, places, facilities or systems belonging to a State or government, a person
or an environment system, resulting or likely to result in major economic loss;
who causes serious damages, evokes public fear, or raises civil unrest with the intention to intimidate apopulation, to threaten or compel the Royal Thai Government, or any government or an internationalorganization to do or abstain from doing any act; that person shall be deemed to have committed an act ofterrorism and shall receive a sentence of either a death penalty, life imprisonment, or an imprisonment
from three to twenty years. The person shall also pay a fine of 60,000 to 1,000,000 baht.
Any demonstration, gathering, protest, or movement that calls for the government s assistance or for fairtreatment, which under the Thai Constitution are legal exercises, shall not be regarded as a terrorist
offence.
Section 135/2
Any person who:
1. threatens to commit a terrorist act and shows behaviour convincing enough to believe that the person
will do as said;
2. collects manpower or stockpiles weapons, provides or compiles any property, or organizes any
preparation or conspires for the purpose of committing a terrorist act; or commits any offence whichis part of a terrorist plan; or abets persons to participate in the commission of terrorism; or is aware of
the act of terrorism and conceals such act; that person shall receive a sentence of imprisonment from100

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two to ten years and shall pay a fine of 40,000 to 200,000 baht.
Section 135/3
Any person who is involved or collaborates with the offender as stated in 135/1 or 135/2 shall receive
identical punishment.
Section 135/4
Any person who is a member of a group of people classified as a terrorist organization by either theUnited Nations Security Council resolution or declaration, which Thailand has endorsed; that person shallbe deemed to have committed an act of terrorism. The person shall receive a sentence of imprisonment
not exceeding seven years and shall pay a fine not exceeding 140,000 baht.
2 The Amendments to the Anti-Money Laundering Act (2542/1999) Section 3
Section 3/8
Offences relating to terrorism under the Penal CodeOnce the offences involving terrorist acts have been enacted, suspicious activity reporting [SAR] willautomatically extend to this new offence.

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APPENDIX C

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