By being placed on the grey list, Thailand is currently in the same group as China and Myanmar, but this should not have a great impact on domestic financial institutions, the BoT says.
However, it is still unclear what penalties will be imposed on Thailand if it is downgraded further and put on the “black” list.
BoT Deputy Governor for Financial Institution Stability, Krirk Vanikkul, noted that being on the black list could affect the movement of money in and out of the country.
However, he believes the Anti-Money Laundering Office, which has a direct responsibility for the matter, and the power to freeze and confiscate terrorist assets, is on top of the situation.
Thailand is a member of the Asia-Pacific Group (APG) of the FATF.
On February 16, the FATF included Thailand in a list of 15 countries that “ not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies”.
It explained, “Despite Thailand’s high-level political commitment to work with the FATF and APG to address its strategic AML/CFT [anti-money laundering and combatting the financing of terrorism] deficiencies, Thailand has not made sufficient progress in implementing its action plan.
“Certain strategic AML/CFT deficiencies remain, although Thailand has faced external difficulties from 2009 to 2011 which significantly impacted the legislative process for the necessary laws and regulations.
“Thailand has taken steps towards improving its AML/CFT regime, including by substantially completing an AML/CFT risk assessment for its financial sector.”
It recommended that Thailand should work on implementing its action plan to address the remaining deficiencies.
Action should include adequately criminalising terrorist financing; establishing and implementing adequate procedures to identify and freeze terrorist assets; and further strengthening AML/CFT supervision.
It concluded, “The FATF encourages Thailand to address its remaining deficiencies and continue the process of implementing its action plan.”