Anti-Money Laundering Law in Thailand

Thanks to the rise of technologies such as social media and cryptocurrencies, the risk of falling victim to money laundering scams and other illegal activities involving large sums of money continues to rise in Thailand. To counter it, Thailand’s legislative body has implemented a comprehensive anti-money laundering law that sets regulations for transaction monitoring across the country and protection for those who have fallen victim to these schemes.

This page will explain Thailand’s anti-money laundering laws, the penalty for participation, and some common scams involving money laundering that foreigners in Thailand should be aware of.

Anti-Money Laundering Law in Thailand

Thailand’s Anti-Money Laundering Act (AMLA) was passed in 1999 with the intention of eradicating the drug trade, as well as combating other activities such as corruption, fraud, and prostitution.

Amendments made to the AMLA in 2008 saw the overall scope of criminal liability broadened and an increase in police powers to conduct investigations and seizures. In 2022, more amendments were made to the Act to provide protection for the injured parties in anti-money laundering cases and the beneficiary’s rights of the property seized by the Public Prosecutor.

What are the Targeted Crimes?

The implementation of the AMLA was initially proposed by Thai officials to address the widespread transfer of money and property from the illegal narcotics trade, as well as to comply with the membership requirements in the 1988 Convention against Illegal Traffic in Narcotic Drugs and Psychotropic Substances.

Currently, the AMLA defines money laundering as the transfer or conversion of funds or property obtained from the following:

• Abuse of power by government officials
• Drug trafficking
• Extortion
• Fraud involving financial institutions
• Gambling offenses listed under gambling laws, most particularly the large-scale organization of gambling games
• Prostitution and other related sexual offenses
• Public fraud
• Trade involving contraband items

Enforcement and Penalties of the Anti-Money Laundering Act

Under the provisions of the AMLA, it is considered a crime to transfer, convert, or receive the transfer of funds or property arising from the above-targeted criminal offenses for the purpose of concealing the source of such funds.

Individuals who commit or attempt to commit a money laundering offense or serve as an accomplice in such crimes are considered violators and will be punished with imprisonment of no more than 10 years or fined no more than 200,000 THB, or both.

The AMLA also provides for the thorough investigation of banking transactions, along with other related financial transactions, giving enforcement officials the power to seize money or property that has been proven to be connected with one of the listed criminal offenses without a warrant.

To recover the seized property, the owner must be able to provide ample evidence to prove that the property is completely unrelated to the commitment of one of the listed crimes or any money laundering offense.

Money Laundering and Foreigners in Thailand

The AMLA has set regulations that require all persons entering Thailand to declare the amount of currency in their possession. The intention is to investigate whether the amount exceeds certain statutory levels and ensure that "mules," criminals carrying large amounts of dirty money, can’t bring money into Thailand to be laundered.

Failure to comply with the reporting requirement is punishable by a fine of no more than 300,000 THB. Moreover, filing a false report will result in imprisonment of no more than 2 years or a fine of no more than 500,000 THB, or both.

Money Laundering Scams in Thailand

One of the most common types of money laundering in Thailand is done through mule accounts. These are bank accounts used by criminals for illegal activities such as fraud, scams, and other cybercrimes.

The term “mule” refers to an individual who allows their bank accounts to be used for illicit transactions, with or without their knowledge. In effect, criminals use mule accounts to launder money by asking the owners to deposit their “clean” money into the criminal’s account. Then, they deposit a larger amount of dirty money into the mule account as recompense to ensure the mule continues to cooperate. Mules can make a profit this way, but these are still criminal acts, and the mule can be prosecuted by the law as an accomplice.

Mules are normally recruited by criminals through various methods including job advertisements, social media, call centers, and phishing schemes. More often than not, potential mules are enticed with promises of job opportunities and easy money. These scammers also deal heavily in cryptocurrencies, as they are harder to trace than traditional transactions.

This is why foreigners who are looking for work to remain in Thailand or for quick financial gain tend to make for easy mules. To avoid falling victim, foreigners should take special care in protecting personal information and verifying the legitimacy of online entities. Legitimate businesses deal in secure payment methods, and would never require a worker to deposit their own money into an unknown account.

Hire a Criminal Defense Lawyer

If you find yourself caught in a money laundering scheme and need a criminal defense lawyer in Thailand, retain the services of Siam Legal International. With over 20 years of experience and knowledge in both Thai criminal and civil law, our bilingual litigation team will not only plainly explain the legal aspects of your case but also help you plan your next steps carefully.

If your property has been seized, we will help you gather any evidence to disprove its involvement in criminal offenses. However, if you are arrested, we have the expertise to swiftly and successfully fight for both your rights and freedom in court.

Should you have any further questions regarding the anti-money laundering law in Thailand, do not hesitate to contact Siam Legal.