It is important that business operators develop measures to prevent money laundering and comply with the Money Laundering Control Act, B.E. 2542 (1999) (“Act“).
In this article, we will discuss the obligations of business operators to report transactions that meet the monetary thresholds set by the Anti-Money Laundering Office (AMLO) or where there are any suspicious transactions as stipulated under the Act.
It is worth noting that the aforementioned reporting obligations apply not only to financial institutions but also a number of other businesses which relate to financial transactions as prescribed under the Act.
Apart from financial-related businesses, other types of businesses may also have specific reporting obligations under the Act due to the nature of the business (e.g., businesses which trade in gems, precious stones, or gold, or jewelry incorporating gems, precious stones or gold, and businesses involved in trading or the hire-purchase of automobiles).
Failure to comply with the required reporting obligations under the Act may lead to penalties including criminal fines.
It is therefore important for business operators to review whether their business (including the specific transactions undertaken in such businesses) will be subject to the reporting obligations under the Act.
Business operators who are subject to the reporting obligations under the Act may wish to put in place a specific anti-money laundering policy in order to ensure that its management and employees will understand and comply with the requirements of the Act including the applicable reporting obligations.
In our next article, we will discuss other requirements under the Act.
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