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    Money laundering consequences


    Posts : 73
    Join date : 2010-07-31
    Location : Thailand

    Money laundering consequences Empty Money laundering consequences

    Post by Admin on 29th March 2012, 8:57 pm

    Firms fear blacklist,
    CEOs fret on possible dip to Iran's rating
    Thailand risks being downgraded to a blacklist by the anti-money laundering Financial Action Task Force (FATF) within a year, say business leaders repeating their call for the government to immediately address the issue.Thailand's current "high-risk" status already threatens long-term impacts including reduced foreign direct investment, mergers and acquisitions, international trade, financial transactions, and tourism, noted business chiefs at a roundtable hosted by the Federation of Thai Industries (FTI).
    Last month the FATF rated Thailand high risk along with 14 other countries due to their failure to take sufficient steps against money laundering and terrorist financing activities. This groups Thailand with Indonesia, Myanmar, Pakistan, Ghana and Tanzania.

    The financial sector will likely be the first casualty as financial transactions will face stricter controls and monitoring, resulting in higher costs, they said.
    "The impacts will only intensify, hurting Thailand's competitiveness, especially in three years when the Asean Economic Community takes effect," said Tanit Sorat, the FTI vice-chairman in charge of economic affairs.
    Drafts regarding anti-money laundering and terrorism financing have been pending for over three years due to political instability and floods.
    They asked for a joint committee comprising representatives from government, the central bank, financial regulators and the private sector to address the issue.
    "These measures must be passed within the year or Thailand risks being downgraded to the same blacklist as Iran and North Korea, which face economic sanctions," said Dr Tanit.
    Banluesak Pussaramgsi, assistant president of CIMB (Thailand), said if financial transactions are more complicated, foreign investments could move to neighbouring countries such as Laos because of ease of operations.

    "Transferring money to pay education fees must be done in advance because it will take longer to complete transactions," said Kobsak Pootrakool, an executive vice-president of Bangkok Bank.
    Supachok Sarpsukon, director of the Thai Tourism Council, said tourism and related businesses such as hotels and restaurants will face difficulties when investing abroad.
    Sihanart Prayoonrat, chief of the Anti-Money Laundering Office, said financial institutions have already felt the pinch from Thailand's high-risk listing as international clients are required to go through longer procedures including enhanced due diligence.

      Current date/time is 20th April 2019, 1:15 pm