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Thailand to comply with the FATF's requirements

The Anti-Money Laundering Act will be amended and strengthened by the end of this year because the intergovernmental Financial Action Task Force on Money Laundering (FATF) has now blacklisted Thailand for not responding to its suggestions, Deputy Prime Minister Kittiratt Na Ranong said on Thursday.

FATF, the prime international watchdog against money laundering, earlier put Thailand on its "dark grey list" and recommended it introduce stronger measures to block money laundering, which was a source of financial support for terrorist groups. Thailand has not responded to the recommendation.

Therefore, it has included Thailand on the list of high risk and non-cooperative jurisdictions failing to meet international standards.

Mr Kittiratt said he understands well that this will definitely affect foreign investor confidence and Thailand as a whole.

He said Deputy Prime Minister Chalerm Yubamrung last week submitted draft bills seeking to amend the Anti-Money Laundering Act and Anti-Terrorism Act to the cabinet for consideration.

The bills were being examined by the Council of State. The two pieces of legislation, once approved by the government's legal advisory body, would be forwarded to parliament for deliberation.

The amendments were expected to be approved and be implemented before the end of this year. It was hoped the FATF would then remove Thailand from its blacklist, he said.

A source said as a result of being blacklisted by the FATF, the cost of capital investment and financial transactions between Thailand and other countries would increase.

It would eventually impede international trading, including the opening of accounts with international financial institutions and remittances, as additional documents would be needed.

Clarification may be needed to identify the origin of the money and objective of transferring money abroad, and the time taken for monetary transactions would be longer, the source said.

CIMB Thai Bank chief executive Supak Sivarak said the amendment would improve the image of the country's financial system.

Even after the anti-money law has been amended to meet FATF requirements, he believed Thailand would continue to be on the blacklist until the committee on financial matters relatinf to money laundering meets again next year.

Although the blacklist had not yet caused much damage for financial transactions, the anti-money laundering law should be amended as soon as possible, Mr Supak said.