International Sanctions: Countries’ Experience in Dealing with

Sanctions and Public Listings

Police Colonel Seehanat Prayoonrat, Ph.D.(Law)

Acting Secretary-General Anti-Money Laundering Office

Thailand

PROCEDURE OF LISTING AND DELISTING

THE UN LIST IN THAILAND

MFA

Submit the UN list

Endorse the list

Cabinet

MFA

Related Agencies

Related Agencies

AMLO

FI

FI

FI

SANCTIONS IN PENAL CODE

Section 135/4

Any person who is a member of a group

of people classified as a terrorist organization

by either United Nations Security Council

resolution or declaration, which Thailand has

endorsed; that person shall be deemed to

have committed an act of terrorism. The

person shall receive a sentence of

imprisonment not exceeding seven years and

shall pay a fine not exceeding 140,000 baht.

CDD MINISTERIAL REGULATION

• FIs are required to reject relationship with

customer if finds that Customer or Beneficiary owner is on the UN List.

• Such a case shall be reported to AMLO as

STR

• If such attributes are found after the

transactions, relationship shall be

terminated and STR shall be reported to AMLO.

DRAFT FOT ACT

• Procedures for designating a domestic

listing and delisting by AMLB

• Procedures for FIs to take action if they

know or suspect that a person with whom

they have dealings is a natural or legal

person, group or entity designated by the

UN Al-Qaida and Taliban Sanctions

Committee or listed by the AMLB

• Freezing measures shall be taken without delay and prior notice to those on the list.

SANCTION

• If fails to comply with the CDD regulation,

FIs shall receive a fine not exceeding five

hundred thousand Baht and an additional

amount not exceeding five thousand Baht

for each following day that the violation was

not corrected or until the action was carried

out correctly.

• If fails to comply with the FOT Act, FIs and

natural or legal persons are set under the

draft Act for the liability to a fine or an

imprisonment or both

IT SYSTEMS TO FACILITATE THE

IMPLEMENTATION

• Developing an IT system in support of

KYC/CDD activity

‒ KYC/CDD Gateway which will be able to

accommodate verification of persons on

international and domestic designated lists

i.e. UN, OFAC, BOE, Australian lists

‒ The AMLO (domestic) list comprises persons

who were examined or whose asset were

seized or forfeited or prosecuted for predicate

offense or money laundering offense under

the AMLA

CHALLENGES IN PRACTICE

• Insufficient information in the UN list to identify

his/her identity:

‒ A case happened in the southern part of Thailand,

a bank reported to AMLO that it found a customer

name matched with the UN list.

‒ The transaction was freezed and he was

proceeded against under the Solicitation Act. We

can not charge him with terrorism offence because

there is no sufficient confirmed information from the

UN or authorized UN agencies i.e. DOB.

• Another case: A South East Asia customer

identified himself to a bank as business man

but it turned out that his name exactly match

with the UN list. However, what a bank can do

best was rejecting to conduct transaction for

him and reported to AMLO. We cannot take

any further action because cannot confirm

his identity from the information provided in the UN list.

CHALLENGES IN PRACTICE (cont’)

• Besides, the existing law does not allow FIs

to immediately freeze the suspicious

account.

• UN should set up a center or POC to assist

FIs and authorities in identifying and

confirming the listed person’s identity in a

timely manner or;

• UN should have a measure for jurisdictions

that provide a list of people pursuant to

UNSCR 1267 and 1373 to have sufficient information available for indentifying.

CHALLENGES IN PRACTICE (cont’)

Thank you Q&A

Pol.Col. Seehanat Prayoonrat, Ph.D.

Anti-Money Laundering Office

snat@amlo.go.th