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Thai banks cautioned about compliance issues related to transactions with Myanmar
The Bank of Thailand has issued a warning to Thai banks about compliance issues related to transactions with Myanmar.
The Bank of Thailand has mandated that Thai financial institutions comply with the Anti-Money Laundering Act B.E.2542, including following the KYC and EDD procedures outlined by the AMLO. Failure to comply will result in actions by the AMLO.
Key Takeaways
- The Bank of Thailand (BOT) has instructed financial institutions to comply with sanctions set forth by the Financial Action Task Force (FATF) and conduct enhanced due diligence for transactions involving high-risk countries to prevent money laundering and financing of terrorism.
- Thai financial institutions must comply with the Anti-Money Laundering Act and adhere strictly to know your customer (KYC) and enhanced due diligence (EDD) procedures.
- The Anti-Money Laundering Office (AMLO) will take appropriate actions against any financial institution found in breach of compliance.
Following recent developments concerning transactions between Thai financial institutions and Myanmar, the Anti-Money Laundering Office (AMLO) has reiterated the necessity for all financial institutions to adhere to the Anti-Money Laundering Act B.E. 2542 (1999).
Financial institutions are required to strictly adhere to official notifications and operational guidelines related to know your customer (KYC) and enhanced due diligence (EDD) procedures for both customers and their transactions as outlined by the AMLO. The Thai financial institutions have consistently demonstrated full cooperation in adhering strictly to these laws and regulations.
In the event of any compliance breach, the AMLO will take necessary actions within its authority and mandates against the offending financial institution.
A report by a U.N. expert on human rights charges that Thai banks have become the main suppliers of financial services to Myanmar’s military government. This enables the military to purchase goods and equipment for its increasingly violent crackdown on pro-democracy resistance forces and ethnic minority groups. The report highlights the shift in financial services from Singapore to Thailand as a result of sanctions, and emphasizes the role of Thai banks in facilitating international business for Myanmar’s ruling military. The report also outlines the human rights violations and the toll of the ongoing conflict in Myanmar.
The report highlights the role of Thai banks, particularly Siam Commercial Bank, in facilitating over $100 million in transactions related to Myanmar military procurement in the fiscal year 2023, contributing to the ongoing human rights violations and aerial attacks on civilians.
Thai banks have become the main international financial service providers for Myanmar’s military government, facilitating purchases of goods and equipment used in the violent suppression of pro-democracy resistance and armed ethnic minority groups. The military junta has shifted its financial services suppliers from Singapore to Thailand after facing sanctions, enabling it to continue procuring arms and military supplies despite international pressure.
The Bank of Thailand (BOT) reaffirmed that the BOT has continued to instruct financial institutions to comply with sanctions set forth by the Financial Action Task Force (FATF) and measures prescribed by the AMLO.
Financial institutions are required to conduct enhanced due diligence for transactions involving high-risk countries. The BOT is prepared to collaborate with the AMLO in supervising financial institutions to prevent Thailand from being inadvertently involved in or used as a channel for money laundering and financing of terrorism.
Source : https://www.bot.or.th/en/news-and-media/news/news-20240628-2.html
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