Government intends to modify the money laundering legislation, enabling the confiscation of assets held by nominees.
Thailand Aims to Crack Down on Foreign Businesses Using Thai Nominees
The Thai government is planning to amend its Anti-Money Laundering Act (AMLA) to tighten regulations against foreign firms using Thai nominees to circumvent local business laws. This move is intended to bolster enforcement efforts and eradicate nominee arrangements that foreign nationals have been exploiting to carry out restricted business activities.
The proposed amendment to the AMLA will classify the use of Thai nominees as a criminal offense, with penalties including asset seizure of unlawful foreign firms. The amendment bill is expected to be submitted to the Cabinet for approval within two months, after which it will be forwarded to the House of Representatives for further deliberation.
If the bill is passed, investigations into approximately 46,000 Thai firms suspected of acting as nominees for foreign investors will be escalated. These probes may take several months, depending on the size and number of firms in each province.
Those found guilty of using Thai nominees could face severe penalties, including asset forfeiture, imprisonment, and business dissolution. Both Thai nationals and foreigners involved in such arrangements would be held accountable under the amended AMLA.
The main objective of the amendment is to enhance business transparency and protect legitimate Thai businesses by closing legal loopholes that foreign firms have been exploiting. The changes are also designed to align Thailand's anti-money laundering standards with international norms.
This is part of a broader effort by Thailand to strengthen its regulatory framework against money laundering and ensure compliance with international standards. The amendment to the AMLA is expected to significantly contribute to this goal by curbing the use of nominees in foreign businesses, promoting fair competition, and preventing illegal activities.
- The amendment to Thailand's Anti-Money Laundering Act (AMLA) seeks to address the issue of international businesses using Thai nominees for restricted activities, aiming to enhance business transparency in the country.
- The proposed regulations are intended to align Thailand's anti-money laundering standards with international norms, thus strengthening its tourism industry and attracting legitimate international business in finance and other sectors.
- By curbing the use of nominees in foreign businesses, the amended AMLA aims to promote fair competition, ensure business finance follows legal operations, and protect local Thai businesses from exploitation by foreign firms.
