THURSDAY, March 28, 2024
nationthailand

16 Thais confirmed in the Panama Papers: AMLO

16 Thais confirmed in the Panama Papers: AMLO

Former politicians, business people among those listed; NACC to check their asset statements.

SIXTEEN Thai people have so far been confirmed to be listed in the “Panama Papers” – the huge trove of documents released recently that reveals individuals and entities from countries around the world who set up secret offshore accounts, the Anti-Money Laundering Organisation (AMLO) said yesterday.
Acting AMLO chief Pol Colonel Seehanart Prayoonrat said Panama’s anti-money laundering agency had responded to a request for clarification on this issue after unconfirmed reports earlier of 21 Thais allegedly identified in the Panama Papers.
But, he said, further investigation was required to establish if the 16 confirmed individuals had committed any wrongdoing, especially if it involved money laundering.
Deputy premier Wissanu Krea-ngam said authorities were investigating the financial activities of the 16 Thai people, adding that if they had legitimate investments overseas and chose to park funds abroad then it was not illegal to do so.
The Panama Papers have caused an uproar around the world, as many politicians, celebrities and world leaders were revealed to have used Panama-based law firm Mossack Fonseca to hide assets overseas.
Seehanart said no Thais currently holding political office were named in the Panama Papers, but an unspecified number of former politicians were on the list. He said his agency would work with the Securities and Exchange Commission to see if there was any evidence showing Thai individuals or juristic people were involved in stock manipulation or other illegal activity, while the National Anti-Corruption Commission would examine former politicians’ asset declarations.
Overall, he said, there was no case suggesting money laundering at this stage – pending further investigation. But wealthy individuals could use companies offshore to minimise tax payment; it might not be illegal, but could be unethical, he added.
In regard to Thailand, he said, AMLO found that there were a total of 719 names, including 411 Thais, 262 expatriates living in Thailand and 45 juristic persons in the Panama Papers.
These people and entities could be legitimate investors and businessmen. If any people were suspected to be involved in money laundering, AMLO was empowered to investigate their assets but the agency would not make any public announcement, he noted.
According to AMLO, Thais and expatriates based here are shareholders, directors and beneficiaries of 48 offshore companies that used the Panama-based law firm Mossack Fonseca.
Most of the offshore shell firms have addresses in Bangkok and tourist resort provinces, especially Phuket.
Finance Minister Apisak Tantivorawong said some businessmen do not bring their funds into the country in order to avoid paying hefty income tax, so they keep funds overseas, where they are not taxed.
None of the 16 Thais on the list were named.
Seehanart said officials had to conduct inquiries privately to avoid violating the right to privacy of individuals whose names appear in the papers. At this stage, only potential money-laundering cases will be investigated “because not all overseas investment activities are illegal”.
In most cases, he said, businessmen have used offshore companies to avoid paying a lot of tax or paying redundant taxes, which are legitimate and many countries accept the practice as an asset management method, although it may not be ethical.
“These cases are not frauds such as VAT [value-added tax] frauds or under-invoicing on imported cars, etc. On fund transfers, any amount transferred out of the country is currently subject to a 15 per cent tax imposed by the Revenue Department. The US, for example, has a very strict law on this matter so every bank around the world has to report to US authorities on every bank account having more than US$50,000 owned by Americans.”
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