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With Thailand thrown on an international financial blacklist, difficulties sending money places, opening bank accounts & higher interest rates all likely.

The diagram above shows the steps involved in a typical money laundering scheme (Source: United Nations Office on Drugs and Crime)

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Money laundering laws to change

Thailand to comply with the FATF's requirements
18/05/2012

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 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 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 relating 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.

(Source: Bangkok Post, Money laundering laws to change, Thailand to comply with the FATF's requirements, 18/05/2012, link)

Money Laundering Vocabulary

money laundering - the illegal activity and process of hiding money obtained illegally, criminal money obtained through crime (See Wikipedia)

anti-money laundering - the laws and technology that the police use to find money laundering and the criminals doing it

Financial Action Task Force on Money Laundering (FATF) - an organization to develop policies to fight money laundering and terrorism financing founded in 1989 with many governments as the G7 as members  (See Wikipedia)

comply - to obey a rule or law or do what someone asks you to do ปฏิบัติตาม (กฎหมาย, ข้อเสนอ, etc.)
comply with requirements - make changes to follow a rule or law

Thailand to comply with the FATF's requirements

act - a law
amended - changed 
amend an act - change a law 

blacklist - a list of people, things or organizations that some people do not like or approve of (the list is made to tell people and prevent them from doing something)
blacklisted - when a person's name is put on a "blacklist"

remove - to take something away เอาออกจาก
remove from the blacklist

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 blacklisted Thailand for not responding to its suggestions, Deputy Prime Minister Kittiratt Na-Ranong said on Thursday.

international - ระหว่างประเทศ between countries
prime - first (in a group of things)

watchdog - an organisation or person that works to stop people from doing illegal things กลุ่มจับตาประชาธิปไตย  (See glossary)
the prime international watchdog

measures - actions taken to solve a problem มาตรการ
introduce measures
introduce strong measures

block - 1. stop someone from doing something; 2. to stop someone or something from moving through or along something else ปิดกั้น  กีดขวาง
block money laundering - stop money laundering

introduce stronger measures to block money laundering,

source - the place or person something comes from or starts at, or the cause of something ต้นกำเนิด, แหล่งกำเนิด

support - help สนับสนุน
financial support - help by giving money

terrorist - of someone who uses violence in order to achieve political aims ผู้ก่อการร้าย ผู้ก่อการร้าย โจรผู้ร้าย

a source of financial support for terrorist groups

recommendation - a suggestion or piece or advice about how to solve a problem, deal with a situation คำแนะนำ หรือข้อเสนอแนะ
respond to recommendation 

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.

risk - the possibility that something dangerous or unpleasant might happen ความเสี่ยง
high risk

cooperative - working together to achieve a goal ความร่วมมือกัน
non-cooperative - not working together to achieve goals

jurisdictions - areas where a set of laws and courts are in operation (example: different countries)
non-cooperative jurisdictions - places with different laws (example: countries) that do not work together to help each othe achieve goals

standards - an acceptable level of quality or achievement มาตรฐาน a rule for behaving which should be obeyed มาตรฐาน, บรรทัดฐาน, กฎเกณฑ์, กรอบ
failing to meet international standards

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

investor - a person or organisation that puts money into a company in exchange for a future profit นักลงทุน
confidence - being certain, feeling sure about something  ความมั่นใจ ความเชื่อมั่น
foreign investor confidence

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

draft - not in a final form and likely to be changed ร่าง written for consideration, but not yet in its final form ฉบับร่าง
bills - money owed to others that must be paid quickly
draft bills

submit - formally give a document to someone so that they can make a decision about it ยื่น  ยื่นเอกสารเพื่อการพิจารณา
submit draft bills

consideration - giving careful thought to something before making a decision
submit to the cabinet for consideration

amend - change a law; to make changes to a document, law, agreement, etc. especially in order to improve it การแก้ไขกฎหมาย

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.

legislation - a law or set of laws suggested by a government and made official by a parliament กฎหมาย, การออกกฎหมาย
piece of legislation

forwarded - after receiving it, you send it so another person
deliberation - considering or discussing something การปรึกษาหารือ
forwarded to parliament for deliberation

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.

expected - believe will happen คาดว่า (จะเกิดขึ้น)
implemented - when a plan is put into action, actually doing the things in a plan

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

capital - money invested in a business (See glossary)
investment - taking your money and putting it into projects to make a profit or earn interest (buying stock shares, bonds, real estate)

capital investment - the interest rate and money that businesses need to pay banks to borrow money
financial transactions - doing things with money like sending it to another person's account or moving it to another account, exchanging it for another currency, etc

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.

eventually - at the end of a period of time or at the end of a process ในที่สุด
would eventually impede international trading

institutions - customs and traditions ระบบหรือประเพณีนิยม
institutions - large and important organizations, such as universities or banks สถาบัน
financial institutions

international
international financial institutions

remittances - money sent back to your country from a foreign country (See Wikipedia)

bank account - the place where a person or organization keeps its money in a bank, with a "bank account number" to identify it
opening of accounts with international financial institutions

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

clarification (noun) - making something more clear; making easier to understand

identify - to specify ระบุ to specify who someone is ระบุชื่อ
identify the origin of the money

objective - what you plan to achieve; goal; aim; purpose เป้าหมาย
objective of transferring money abroad

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.

improve - to make better ทำให้ดีขึ้น
image - an opinion that people have about someone or something; the picture of something that people have in their mind ภาพลักษณ์

improve image - make image better; make people think more highly of you
improve the image of the country's financial system

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

matters - affairs, a situation that you must deal with that has problems
financial matters - things about money that you must do in business or personal life

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 relating 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.