Fast implementation of new act urged

The private sector has urged Parliament to fast-track implementation of the newly amended Anti-Money Laundering Act to ensure Thailand escapes the Financial Action Task Force (FATF) “Dark Grey List” when it is revised next year.

The calls follow the House’s passage on Wednesday of revisions to the Anti-Money Laundering Act. Several legislative procedures remain to be completed before the amendments can be implemented, creating concern in the private sector that the timeline for the FATF’s review of its sanction won’t be beaten.

The FATF is scheduled to review the Kingdom’s status in January.

It is hoped that the FATF will remove Thailand from its list, which would end a financial-transaction slowdown that has begun to affect Thai businesses.

Thanit Sorat, vice chairman of the Federation of Thai Industries, said Parliament needs to make the Anti-Money Laundering Act a priority and see that it is implemented before early next year. Otherwise, Thai businesses could face difficulty in conducting international financial transactions, Thanit said. 

He suggested that Parliament skip the usual procedure of waiting for 120 days after the act has been published in the Royal Gazette and announce immediate enforcement.

Thanit said that if Parliament does not push the act through quickly, Thailand could be at high risk of being on the list for at least another six months, which would definitely create trouble for Thai firms doing business overseas.

If the act is not implemented in time, Thai businesses will face difficulties on three levels. 

First, trade partners will need to obtain more information to complete financial transactions, costing them time and money; second, Thai businesses will be obliged to provide information to trade partners on their financial backgrounds; and last, the Kingdom could lose trade opportunities because of difficulties conducting financial transactions.

Buntoon Wongseelashote, chairman of the Board of Trade of Thailand’s committee monitoring trade issues, was confident Thailand would not face difficulties conducting financial transactions if the law is implemented by early next year.

“Thailand has shown progress in passing the laws through the Parliament. The FATF should review the country’s trade status and not list Thailand in the black list, or ‘Dark Grey List’,” Buntoon said. He did not believe Thai businesses had faced difficulties in financial transactions with trade partners so far, but admitted that they could face trouble in the future if the act could not be enforced in time.