International Sanctions: Countries Experience in Dealing with Sanctions and Public Listings

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1 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

2 PROCEDURE OF LISTING AND DELISTING THE UN LIST IN THAILAND MFA Submit the UN list Cabinet FI Related Agencies Endorse the list FI AMLO MFA FI Related Agencies

3 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.

4 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.

5 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.

6 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

7 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

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9 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.

10 CHALLENGES IN PRACTICE (cont ) 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.

11 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.

12 Thank you Q&A Pol.Col. Seehanat Prayoonrat, Ph.D. Anti-Money Laundering Office