In our previous newsletters, we explored the first two key legal obligations of non-financial businesses under the Money Laundering Control Act, B.E. 2542 (1999) (the “Act“): reporting obligations and know-your-customer (KYC) and customer due diligence (CDD) procedures.
In this article we will discuss the third and fourth key legal obligations: implementing internal policies and procedures to address the risk of money laundering, and coordinating with the Anti-Money Laundering Office (AMLO) to provide training for personnel.
Internal policies and procedures
The Act requires that businesses in question must develop and implement a set of internal policies and procedures to assess, manage, and mitigate the risk of money laundering. These must be in writing, be approved by the board of directors or high-level management, and their importance must be communicated to all relevant staff.
The internal policies and procedures must establish a framework regarding such things as the products and services offered, the location of the business, sales channels, and customers and suppliers. They must also set out clear procedures to manage and mitigate the risk of money laundering activities in these areas, and to comply with the reporting, KYC, and CDD obligations discussed in earlier bulletins. Mitigation measures might involve policies and procedures regarding customer acceptance, employee screening and training, internal audit activities, or the appointment of specific personnel to take responsibility for anti-money laundering efforts.
AMLO approved training arrangements
The Act requires that non-financial business operators falling under the scope of the Act must coordinate with the AMLO to prepare training for employees whose responsibilities relate to anti-money laundering efforts. This may involve individuals at all levels of an organization, from management responsible for setting and overseeing the anti-money laundering policy, to front-line staff interacting with customers and processing transactions on a daily basis. Businesses that fail to implement the approved training may be subject to substantial penalties. We will be very pleased to provide you with further information or advice on anti-money laundering matters.
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