Transcript The Anti-Money Laundering Law Of Thailand

Effective action against corruption
Sub-theme 4: Law Enforcement:
TOPIC: Case Study –Specialised Units and Courts
Global Forum 5
2-5 April 2007
Johannesburg, Republic of South Africa
1
Pol.Maj.Gen.Peeraphan Prempooti
Advisor to the Prime Minister
2
Corruption has become an issue of major
political and economic significance in recent
years and the necessity to take measures
against it has become evident. The OECD has
assumed a leading role in preventing
international bribery and corruption.
CORRUPTION - An act done with an intent to give some
advantage inconsistent with official duty and the rights of
other. It includes bribery, but is more comprehensive;
because an act may be corruptly done, though the
advantage to be derived from it be not offered by another.
Sometimes corruption is understood as something
against law; such as, a contract by which the borrower
agreed to pay the lender usurious interest. It is said, in
such case, that it was corruptly agreed, etc.
3
Founding: AD.1238 (never colonized)
Corruption by Country Ranking: 61
Population: 64,631,595
GDP per capita: $ 2,547.14
Capital: Bangkok (pop. 5,882,000+)
Religions: Buddhist: 94.7%
Muslims:
4.7%
Christian: 0.7%
Others:
0.9%
4
Corruption
Means the performance or omission of a particular
act in office or in the course of official duty, or the
performance or omission of a particular act under
the circumstance likely to cause other persons to
believe that the person so performing or omitting
holds such office or has such duty although the
office or duty is not held or assumed by such
person, or the exercise of power in office or in the
course official duty with a view to acquiring undue
benefits for his or her own or for other persons
5
Political Rules on Anti-corruption in Thailand
1. Political Will: Gov’t declares clear policy against all type of
corruption
2. Specific Legislation/s: The Issuance of Special Legislations
3. Specific Authority: The establishment of Special Law
Enforcement Agencies: National Counter Corruption
Commission
4. Specific Measure/s: The Announcement of Gov’t Special
Measures: “The WAR against Corruption”
5. The signing of UN Convention against Corruption
on 9 Dec. 03
6
Law Enforcement Agencies in Thailand
with jurisdiction on Anti-Corruption
1. Royal Thai Police Department (RTP) :
-
Thai Criminal Code B.E.2499 (1956)
2. The Office of the National Counter Corruption Commission
(NCCC)
-
Organic Act on Counter Corruption, B.E.2542 (1999)
3. Anti-Money Laundering Office (AMLO)
-
Anti-Money Laundering Act B.E.2542 (1999)
4. Department of Special Investigation (DSI)
-
The Special Case Investigation Act B.E.2547 (2004)
7
Special authorities of NCCC
under the virtue of Organic Act on Counter Corruption, B.E.2542 (1999)
 To inspect assets and liabilities of State official/s
and politician/s;
 Inquire and submit a request to impeach high
ranking state official/s or politician/s from position.
 Criminal Prosecution against politician/s or state
official/s
 Inquire & probe on state officials of his/her wealthy
beyond income/ malfeasance in office or corruption
practice.
 To prescribe rules and procedures: To receive the
report of submission of the assets and liabilities
8
of State officials and PM and Minister;
Special Powers of NCCC
(continued)
 To refer matters to the agency concerned to
make a request to the Court to revoke a right or
document of which the State official has granted
to a particular person in contravention of the law
or official regulations to the detriment of the
Government service;
 To submit a criminal indictment case to the
Supreme court via Attorney General Office for
criminal assets forfeiture, including the forfeiture
of substituted corresponding value of assets.
9
.
Narcotics
•
L
Trafficking in Women & Children
Terrorism
Customs Evasion
AMLA Predicate Offence
Cheating & Fraud
to the Public
Extortion &
Blackmail
Malfeasance in
Office
Embezzlement/Cheating & Fraud
in Financial Institutions
10
Exploitation of
natural resources
Offenses relating to
the Excise Law
Money Exchange
Control Act
8 Additional
predicate offenses
Illegal
gambling
Stock Manipulation
Labour fraud
Unfair Practice in
Public Procurement
Arms smuggling
11
Additional 8 predicated Offences
(The amendment is in progress)
•
•
•
•
•
•
Exploitation of Natural Resources
Foreign Exchange Control Act
Stock Manipulation
Illegal Gambling
Arms Smuggling
Unfair Practice in Public
Procurement
• Labour Fraud
• Offences Related to the Excise Law
 Draft is being submitted to Cabinet to be forwarded to
Parliament
12
Special Authority of AMLO
Under the virtue of AMLA 1999 Against Corruption practice

Financial Transaction Report: To receive financial reports
from Financial Institutions nationwide;

Analysis STR: To access to related information of
suspicious transaction reports;

Right to access telecommunication system: Request a
warrant from the civil court to access & obtain information
from telecommunication system by using special
equipments

Extraterritoriality : Jurisdiction exists over money
laundering offense committed outside Thailand.

Civil Forfeiture Measure: Shift burden of proof, Civil court
shall forfeit the asset involved in an offense under a
probable cause to believe, Civil forfeiture is a property in
rem and the court judgment does not lean on criminal case.
13
Special Authority of DSI
Under the virtue of The Special Case Investigation Act. 2004
 Criminal offenses provided in 22 Acts:
1. Law on Loan Amounting to Public Cheating and Fraud;
2. Competition Act; (Anti-Dumping)
3. Commercial Banking Act;
4. Law on the Finance Business, Securities Business
and Credit Foncier Business;
5. Chain Loan Control Act;
6. Foreign Exchange Control Act;
7. Law on Government Procurement Fraud;
8. Act for the Protection of Layout-designs of Integrated
Circuits
14
Special Authority of DSI (continued)
Under the virtue of The Special Case Investigation Act. 2004
9. Consumer Protection Act;
10. Trademark Act;
11. Currency Act;
12. Tax and Duty Compensation of Exported Goods
Produced in the Kingdom Act;
13. Interest on Loan by the Financial Institution Act;
14. Bank of Thailand Act;
15. Public Company Act;
16. Anti-Money Laundering Act;
17. The Industrial Product Standard Act;
18. Copyright Act;
15
19. Board of Investment Commission Act;
Special Authority of DSI (continued)
Under the virtue of The Special Case Investigation Act. 2004
20. Enhancement and Conversation of National
Environment Quality Act;
21. Patent Act;
22. Securities and Exchange Commission Act.
********************************************
 Access to telecommunication System: To request
a warrant from the criminal court to obtain the
telecommunication information by using special
equipments;
 To conduct the undercover missions; control
delivery, penetrate into organized crime group
16
Joint Operation of
law enforcement agencies
on
Anti-corruption
in Thailand
Performance of AMLO on 8 predicate offenses (2000 – 2006)
Total cases =
615 cases with total of assets 4,056,502,481.58 Baht
In Court
552 cases with total of assets 3,473,722,225.88 Baht
=
(Exchange rate 35.00 Baht = 1 US Dollar)
17
Malfeasance in Office :
State official issued
counterfeited Land Title Deeds (Sor Por Kor 4-01) to
assist businessman to encroach & trespass on public
18
land in Phuket Province
Mountainous land which is the Public land had been
encroached by businessman using counterfeited Land
19
Title deeds (Sor Por Kor 4-01)
AMLO and police seized assets involved in
corruption case from a former Director General
resident in Bangkok in 2005
20
AMLO and local police seized assets in corruption
case from a former City Councilor resident in
21
Naratiwat Province in Dec.2005
Malfeasance in Office : A former Abbot of a temple
embezzled donated money 8-9 million Baht for 22
personal gain. (Wat Koo case)
AMLO and Police seized the embezzled
monies from bank deposit box (Wat Koo23
case) then returned to the right owner
Embezzled monies hidden in Commercial Bank Deposit 24
Box
Cross Border Statue
• Palermo Convention
• Article 18 paragraph 13 requiring all
State-Parties to establish an official
central authority to receive formal
requests for legal assistance by going
through normal protocol as well as to
execute or transmit the request to the
competent authority for further action.
• Mutual Legal Assistance in Criminal
Matters
25
International Cooperation
• AMLO is a member of Int’l Organizations:
1. APG in April 2001 and
2. EGMONT Group in Oct. 2001 with 101countries
• AMLO also is in cooperation with other int’l or
regional organizations e.g. ASEM, IMF, World
Bank, etc. in the matter related to ML prevention
and suppression.
• AMLO has signed the MOU with 28 countries and
is now in the negotiation process with many
countries.
26
Mutual Legal Assistance in Criminal Matters
1)
2)
3)
4)
5)
Investigation, inquiry, and testimony.
Compiling and providing documents or information
Delivery of documentary evidence
Search and seizure
Transferring or accepting a person in custody
for taking testimony
6) Tracing of subjects or individuals
7) Initiating criminal proceeding upon request
8) Confiscation or seizure of assets
27
Treaties of Mutual Legal
Assistance in Criminal Matters
• Thailand has signed the treaty of
Mutual Legal Assistance in Criminal
Matters with 7 countries :
1.
3.
5.
7.
Canada (1994) 2. France (2000)
Korea (2005)
4. PR China (2005)
Norway (2000) 6. UK. (1997)
USA. (1993)
28
Extradition Treaties
• Thailand has signed the
with 10 countries:
1. UK. (1911)
3. Indonesia (1980)
5. USA. (1991)
7. Korea (2001)
9. Bangladesh (2001)
Extradition treaties
2.Belgium (1936)
4. Philippines (1984)
6. China (1999)
8. Laos PDR (2001)
10. Cambodia (2001)
29
International Cooperation in
Combating Money Laundering
AMLO offers Int’l Cooperation through:
• Asia Pacific Group on Money Laundering (APG): 23
Jurisdiction members (joined April 2001)
• Egmont Group: 101 Jurisdiction members (joined Oct.2001)
• Memorandum of Understanding concerning cooperation in
the exchange of financial intelligence related to money
laundering (MoU): 28 FIUs:
Andorra
Australia
Belgium
Brazil
Bulgaria
Cayman Islands
Estonia
Finland
Georgia
Indonesia
Ireland
Japan
Korea
Lebanon
Malaysia
Mauritius
Monaco
Netherlands
Myanmar
Nigeria
Philippines Poland
Portugal
Romania
30
St.Kitts & Nevis
St.Vincent & Grenadines Ukraine
UK.
Recommendations
For effective cross-border cooperation:
• Countries take steps to sign the treaties of Mutual Legal
Assistance in Criminal Matters
• Countries are encouraged to sign the MoU concerning
cooperation in the exchange of financial intelligence with
AMLO
• Set up point of contact (POC)
• Formal channel
• Informal channel
• Hotline communication
• Telephone/Mobile/Facsimile
• Email, etc.
31
Contact Address:
The Secretariat of the Prime Minister
Government House (HQ Building 2)
Dusit, Bangkok 10300, Thailand
Tel: +662-282-6939, Fax: +662-282-2215
For details, please visit : www.thaigov.go.th
32