Bangkok--22 Mar--SEC
The SEC informed all securities companies, asset management companies, financial advisors, and derivatives business operators in the capital market on the promulgation of the Anti-Money Laundering Act (No. 4) B.E. 2556 (2013) and the Counter-Terrorism Financing Act B.E. 2556 (2013).
The promulgation of the above Acts demonstrates significant progress in meeting international standards on combating money laundering and the financing of terrorism & proliferation as recommended by the Financial Action Task Force (FATF), thereby removing Thailand from the blacklist of countries perceived as non-cooperative in the global fight against money laundering and terrorist financing. In this regard, the SEC was informed by the Anti-Money Laundering Office (AMLO) on the amendments of predicate offenses under the Anti-Money Laundering Act to include the offense relating to unfair securities trading under the Securities and Exchange Act; comprising imparting false or misleading statement, insider trading, and share price manipulation.
Consequently, the reporting entities under the Anti-Money Laundering Act, which include securities companies, asset management companies, financial advisors, and derivatives business operators are required to report suspicious transactions as specified by the law to the AMLO; which has the power to examine the report and information relating to suspicious transactions, as well as issue an order to seize or freeze any assets relating to the offenses under such Act.
Furthermore, under the Counter-Terrorism Financing Act, the above reporting entities shall have the duties as instructed by the AMLO, including: (1) set out a risk assessment policy or any guidance for the prevention of the financing of terrorism; (2) freeze the assets of the designated persons or a person acting on behalf of, or at the direction of, or an undertaking controlled by such persons; (3) inform the AMLO of such frozen assets; and (4) inform the AMLO of a customer or former customer who is listed as a designated person or who has or had conducted transactions with such a person.
Failure to do so may result in criminal penalty. In addition, a director, a manager, or a person responsible for the operation of the reporting entity’s orders or action, failure to give instructions or perform their duty, such person may also liable to the penalty under the said Acts.
SEC Secretary-General Vorapol Socatiyanurak said that “Business operators in the capital market have duties under the Anti-Money Laundering Act and the Counter-Terrorism Financing Act. They must therefore have in place sound and sufficient systems for monitoring securities trading and other services provided to their customers so as to prevent the commission of offenses under such Acts.”