Private sector worries about downgrade

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) urged the prime minister to at least convey a message to the Financial Action Task Force on Money Laundering (FATF) Plenary and Working Group Meeting that the country intends to proceed with the anti-money-laundering law. The anti-terrorist financing law is included.
The FATF is currently meeting in Paris and will announce the official ratings on Monday. There have been reports that Thailand could possibly be downgraded to the countrywatch list in the first group, which now consists of Burma, Sri Lanka, Cuba, Bolivia and Ethiopia. The second group at present includes Vietnam, the Philippines, Indonesia and Thailand.
The meeting today will consider ranking the countries according to the action they have taken against money laundering and financing terrorism. Thailand now is categorised in the Second Public Document group, which means that it is in the process of implementing such laws. The private sector’s concern is that Thailand may be downgraded to the First Public Document Group’s subsection – the watchlist countries. The international financial transactions of countries in this group will be watched closely.
 The main reason for the possible downgrade is the delay in legislating anti-money-laundering and anti-terrorist-financing laws, private groups of financial associations said on Monday.
Payungsak Chartsuthipol, chairman of the Federation of Thai Industries (FTI), said as of press time yesterday that the committee would submit a letter to the premier showing the private sector’s concern about the possibility of Thailand being downgraded to the group that is not active in enforcing laws on anti-money laundering and financing of terrorism. The committee would like the prime minister to take action by at least delivering the message that Thailand has paid attention to these matters.
“The message from the prime minister may save Thailand from being downgraded. Any downgrade will affect the confidence in our country. Thailand’s representatives who are attending the meeting in Paris therefore can inform the FATF that we are in active against money laundering and financing terrorism,” he said.
Payungsak said a certain criteria to judge whether Thailand would be downgraded to the watchlist group is law enforcement. Presently, Thailand does not have any anti-money laundering and financing terrorism laws.
Sompol Kiatphaibool, chairman of the Stock Exchange of Thailand (SET), said he was not so sure that any Thai prime minister had announced seriously the intention to combat money laundering and crack down on supporters of terrorism. As far as he was concerned, no one of them had done that hence he wants Prime Minister Yingluck to confirm Thailand’s position that the country does not support those activities.
He said if Thailand were among the watch-list countries, all international financial transactions would face obstacles. The transaction will take a longer time to probe the source of the finances. As a result, the financial cost will increase. Besides, foreign investors’ confidence may be eroded.