You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

September 10, 2020

Thailand Prepares to Amend Laws on Anti-Money Laundering and Counter-Terrorism Financing

Subscribe to Updates

By recommendation of the Financial Action Task Force (FATF), Thailand is preparing to amend the Anti-Money Laundering Act B.E. 2542 (1999) (AMLA) and the Counter Terrorism and Proliferation of Weapons of Mass Destruction Financing Act B.E. 2559 (2016) in order to be consistent with international standards. The public hearing on the draft acts was completed on June 15, 2020, and the laws will now continue through the cabinet and parliament.

Key Draft Amendments to the Anti-Money Laundering Act

  • The definition of “financial institution” is expanded to include operators of many financial technology services, including:
    • asset management and digital asset businesses;
    • trustees in capital market trusts;
    • derivatives businesses;
    • authorized juristic persons under foreign exchange controls;
    • personal loan businesses;
    • nano- and pico-finance businesses;
    • peer-to-peer lending businesses;
    • crowdfunding platforms;
    • regulated e-payment systems and services;
    • non-bank credit card service providers; and
    • additional businesses related to financial services or financial technology services at risk for money laundering (by further announcement in ministerial regulations).
  • The definition of “professions” (formerly known as “section-16 professions”) is expanded to include additional occupations and businesses, such as accounting, auditing, auto trading and leasing, legal consulting, and additional professions at risk for money laundering (by further announcement in ministerial regulations).
  • Measures for customer identity verification—commonly known as know-your-customer (KYC)—and customer due diligence (CDD) measures are consolidated into a single measure.
  • For cash transactions exceeding the prescribed threshold, parties in the listed professions are assigned recordkeeping duties in addition to their current reporting duties.
  • The authority and power of the Anti-Money Laundering Office are expanded to include acting as a central financial intelligence agency to regulate, check, and rate the operations of companies and branches both within and outside of Thailand.

Key Draft Amendments to the Counter Terrorism and Proliferation of Weapons of Mass Destruction Financing Act

  • A channel is established for section-6 designated persons to submit a petition for reconsideration and delisting to the U.N. Security Council via Thailand’s Ministry of Foreign Affairs.
  • If a designated person’s funds and assets are frozen, qualifying financial institutions and professions are given an exemption that enables them to deposit funds (e.g., due payments, interest, etc.) earned prior to the freeze into the frozen account.

Additional Updates to CDD Regulation

In addition to the above draft amendments, the new Ministerial Regulation on Customer Due Diligence B.E. 2563 (2020) came into force on August 12, 2020. This repealed and replaced the former version from 2013 (as amended), and contains the following key updates:

  • The definition of “politically exposed person” (PEP) has been amended for clarity and ease of compliance according to the FATF recommendations. Also, certain new definitions have been added, such as “senior management,” “family member,” “intimate person,” “business relationship,” “risk,” and “reliable source of information.”
  • The measures to assess, manage, and relieve risks have been streamlined for consistency with international standards. For example, reduction of a customer’s risk level now requires approval from senior management. Foreign PEPs and customers from any country in the FATF list of high-risk jurisdictions are to be treated as high-risk customers, whereas domestic PEPs are subject to CDD for risk assessment.
  • CDD and KYC measures have been enhanced for certain types of customers, such as juristic persons, trusts, and so on.
  • Reporting entities are excused from identifying the beneficial owners of certain types of customers, such as governmental authorities, special financial institutions, listed companies, mutual funds, and so on.
  • For international electronic transfer of funds below THB 50,000 (approximately USD 1,600), the transferring financial institution must also transmit information about the transferor and transferee to the receiving financial institution.

For more information on this development, or on any aspect of anti-money laundering law, please contact Kobkit Thienpreecha at [email protected] or +66 2056 5534, or Teelada Rujirawanichtep at [email protected] or +66 2056 529.

Related Professionals

Practices

Banking and Finance

Compliance and Investigations

Location

RELATED INSIGHTS​ 

June 30, 2025
On April 29, 2025, the State Bank of Vietnam (SBV) issued Circular No. 03/2025/TT-NHNN (Circular 03), which provides detailed guidance on the opening and use of Vietnamese dong (VND) accounts by non-resident foreign investors engaging in indirect investment activities in Vietnam. Circular 03, which took effect on June 16, 2025, amends Circular No. 06/2019/TT-NHNN of the SBV on the management of foreign exchange for foreign direct investment activities in Vietnam (Circular 06) and replaces Circular No. 05/2014/TT-NHNN of the SBV guiding the opening and use of indirect investment capital accounts for implementation of foreign indirect investment activities in Vietnam (Circular 05). Below are some of the key points of Circular 03. Change of Account Name Circular 03 renames “indirect investment capital account” to “indirect investment account” (IIA). This change aligns with the terminology used in other legislation, ensuring consistency across Vietnam’s legal framework governing foreign exchange and investment activities. Additionally, by removing the word “capital,” the new term better encompasses the full range of transactions that may be conducted through these accounts, such as share transfer and other forms of indirect investment-related activities. This helps prevent misinterpretation and facilitates compliance for foreign investors operating in Vietnam. Account Types Circular 03 clearly delineates account types and investor residency status as follows: For non-resident foreign investors: The opening and use of investment accounts in VND is for carrying out transactions related to indirect investment activities. For resident foreign investors: Credit and debit transactions are made through payment accounts in VND in accordance with relevant laws. Additional Permitted Uses of IIAs In addition to the cash inflows and outflows authorized under Circular 05, Circular 03 introduces more cash transactions that can be conducted via IIAs. These include: Receiving interest and other legal income when conducting stock purchase transactions that do not require
Read More
June 27, 2025
Tilleke & Gibbins has contributed the Cambodia, Thailand, and Vietnam chapters to Taking and Enforcing Collateral Security and Guarantees in Southeast Asia, a comparative guide developed by Drew Network Asia (DNA). The publication examines the legal frameworks governing collateral security and guarantees across seven Southeast Asian jurisdictions and is intended to assist financial institutions, corporate borrowers, and cross-border investors in evaluating secured lending options in the region. The guide provides a practical overview of key issues relevant to taking and enforcing security interests—covering, among other topics, the types of assets that may be secured, the formalities and registration requirements for creating security, and the rights and procedures available in enforcement scenarios. Each chapter follows a consistent question-and-answer format to allow readers to compare approaches across jurisdictions easily. While the guide offers a high-level survey of the region’s collateral and guarantee regimes, it also notes that country-specific developments and transaction-specific considerations may affect the applicable requirements. Readers seeking detailed advice are encouraged to consult the lawyers listed at the end of each jurisdictional chapter. The full guide is available for download using the button below or directly from the DNA website.
Read More
June 19, 2025
The Bank of Thailand (BOT) has released draft guidelines establishing principles for managing artificial intelligence (AI) risks in the financial sector. The draft guidelines provide a structured framework for the responsible adoption of AI technologies. Financial service providers will be able to use the guidelines as a reference to appropriately manage their risks in a manner that aligns with internationally recognized best practices. The BOT is accepting public comments on the draft guidelines until June 30, 2025. Scope and Application The draft guidelines apply to all financial service providers, including financial institutions and special financial institutions under the Financial Institution Business Act, as well as payment providers under the Payment Systems Act. These guidelines supplement existing BOT risk management guidelines covering IT risk management, third-party risk management, data governance, and market conduct. The guidelines define AI systems as systems that mimic human intelligence, including machine learning, deep learning, generative AI (such as large language models), and agentic AI. This definition specifically excludes rule-based automation systems like robotic process automation and condition matching. Key Risk Management Principles The guidelines lay out two main principles in managing AI risk. Governance: Financial service providers should define and establish clear roles and responsibilities for their personnel and AI system supervision structures to uphold FEAT (fairness, ethics, accountability, and transparency) principles as follows: Stakeholder roles and responsibilities. Financial service providers should define roles and responsibilities for boards and executives on AI risk oversight. Responsibilities include establishing an AI system usage policy, designating personnel responsible for AI risk management, and building awareness of AI-related risk within the organization. AI system usage policy. The AI system usage policy should be aligned with organizational objectives, regulatory requirements, and FEAT principles. These policies should be reviewed regularly to respond to technological advancements and evolving risk profiles. Risk management
Read More
June 16, 2025
Thailand has amended its primary anticorruption law to provide robust new protections and direct assistance to whistleblowers. The Organic Act on Anti-Corruption (No. 2) B.E. 2568 (2025) was published in the Government Gazette on June 5, 2025, and came into force the following day. The amendment introduces a clear framework for safeguarding and supporting individuals who report graft. The amendment addresses a critical gap in the previous legislation by establishing formal mechanisms to protect and assist those who come forward with information. The key changes aim to shield whistleblowers from retaliatory legal and disciplinary actions, thereby encouraging more citizens to participate in exposing corruption without fear of reprisal. Key updates to the law are discussed below. Whistleblower Immunity The amendment clarifies and strengthens legal immunity by revising section 132 of Thailand’s original anticorruption law from 2018. Under the revised section, individuals who provide good-faith statements, information, evidence, or opinions to the National Anti-Corruption Commission (NACC) regarding offenses under its jurisdiction will be protected from civil, criminal, and disciplinary liability. This protection is explicitly extended to individuals who provide information to other state agencies tasked by the NACC to investigate corruption, such as the Public Sector Anti-Corruption Commission or the whistleblower’s own supervisors. Protection and Assistance A new section added to the law establishes a clear and swift process for activating protections. When the NACC learns that a whistleblower is facing legal complaints, criminal charges, or disciplinary action due to their report, the commission must review the matter and decide on providing protection within 15 days. If the NACC determines that the whistleblower acted in good faith, its office is required to provide immediate assistance. Legal and Financial Support Another newly introduced section outlines a wide range of assistance measures the NACC office can provide in civil and criminal cases
Read More