The Financial Action Task Force (FATF) revealed that Thailand was on a list of 15 countries that have yet to make significant progress in preventing the finance of terrorism as well as money laundering.
The statement comes less than a week after a botched explosion led to the arrest of two Iranians suspected of planning a terrorist attack targeting Israeli interests in the Thai capital.
Deputy Prime Minister and Minister for Finance Kittiratt Na-Ranong said that the government would like to FAT to explain the situation.
- The FATF have placed Thailand on a blacklist of countries failing to act on preventing money laundering and funding terrorism
“As far as I know, Thailand has been requested by the FATF to issue an anti-money-laundering law that complies with international standards but we have failed to do so, which led to the country being blacklisted,” Kittiratt said.
Thai finance experts agree that the FATF’s position would compound negatively following last week’s bomb scare, with the head of Siam Commercial Bank (SCB), Kannika Chalit-Aphon, urging the government to take action and speed up changes in legislation.
- Thailand’s deputy prime minister and minister for finance, Kittirat Na Ranong.
“There could be some worries and impacts on investments in certain industries. It is not a big problem,” she said.
While the recent terror scares may have some short-term impact on business, experts generally have an optimistic outlook.
Federation of Thai Capital Market Organisation (FeTCO) chairman, Paiboon Nalintharankul, said that the government should heed this advice and get on with making the required changes to national laws affecting money laundering.
He added that being on such a blacklist could affect competition in the private sector, while investment from overseas could be affected due to tighter procedures.
The FATF’s statement said: Despite Thailand’s high-level political commitment to address its strategic deficiencies, Thailand has not made sufficient progress in implementing its action plan, and certain strategic deficiencies remain.”
The report also suggested that Thailand go to greater lengths to criminalise the financing of terror and establish measures to identify and freeze the assets of individuals suspected to have links with terrorism.
Other countries to be highlighted by the FATF as uncooperative include Bolivia, Burma, Cuba, Ethiopia, Ghana, Indonesia, Kenya, Nigeria, Pakistan, Sao Tome and Principe, Sri Lanka, Syria, Tanzania, and Turkey.
