# Thai banks cautioned about compliance issues related to transactions with Myanmar

- Link: https://www.thailand-business-news.com/banking/149009-bot-warns-thai-banks-of-compliance-issues-related-to-transactions-with-myanmar
- Published: 2024-07-01T07:39:00+07:00
- Author: Akanksha Singh

The Bank of Thailand has mandated that Thai financial institutions comply with the
Anti-Money Laundering Act B.E.2542, including following the KYC and EDD procedures
outlined by the AMLO. Failure to comply will result in actions by the AMLO.

---

## Key Takeaways

 * The Bank of Thailand (BOT) has instructed financial institutions to comply with
   sanctions set forth by the Financial Action Task Force (FATF) and conduct enhanced
   due diligence for transactions involving high-risk countries to prevent money
   laundering and financing of terrorism.
 * Thai financial institutions must comply with the Anti-Money Laundering Act and
   adhere strictly to know your customer (KYC) and enhanced due diligence (EDD) 
   procedures.
 * The Anti-Money Laundering Office (AMLO) will take appropriate actions against
   any financial institution found in breach of compliance.

Following [recent developments concerning transactions between Thai financial institutions and Myanmar](https://apnews.com/article/thailand-arms-procurement-singapore-banks-sanctions-981ae540a6c869ec388ce1f8a2972e2f),
the Anti-Money Laundering Office (AMLO) has reiterated the necessity for all financial
institutions to adhere to the Anti-Money Laundering Act B.E. 2542 (1999).

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Financial institutions are required to strictly adhere to official notifications
and operational guidelines related to know your customer ([KYC](https://www.investopedia.com/terms/k/knowyourclient.asp))
and enhanced due diligence (EDD) procedures for both customers and their transactions
as outlined by the AMLO. The Thai financial institutions have consistently demonstrated
full cooperation in adhering strictly to these laws and regulations.

In the event of any compliance breach, the **AMLO will take necessary actions within
its authority and mandates against the offending financial institution.**

A report by a U.N. expert on human rights charges that Thai banks have become the
main suppliers of financial services to Myanmar’s military government. This enables
the military to purchase goods and equipment for its increasingly violent crackdown
on pro-democracy resistance forces and ethnic minority groups. **The report highlights
the shift in financial services from Singapore to Thailand **as a result of sanctions,
and emphasizes the role of Thai banks in facilitating international business for
Myanmar’s ruling military. The report also outlines the human rights violations 
and the toll of the ongoing conflict in Myanmar.

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**The report highlights the role of Thai banks, particularly Siam Commercial Bank,
in facilitating over $100 million in transactions related to Myanmar military procurement**
in the fiscal year 2023, contributing to the ongoing human rights violations and
aerial attacks on civilians.

**Thai banks have become the main international financial service providers for 
Myanmar’s military government, **facilitating purchases of goods and equipment used
in the violent suppression of pro-democracy resistance and armed ethnic minority
groups. The military junta has shifted its financial services suppliers from Singapore
to Thailand after facing sanctions, enabling it to continue procuring arms and military
supplies despite international pressure.

**The Bank of Thailand (BOT) reaffirmed that the BOT has continued to instruct financial
institutions to comply with sanctions set forth by the Financial Action Task Force(
FATF) **and measures prescribed by the AMLO. 

Financial institutions are required to conduct enhanced due diligence for transactions
involving high-risk countries. The BOT is prepared to collaborate with the AMLO 
in supervising financial institutions to prevent Thailand from being inadvertently
involved in or used as a channel for money laundering and financing of terrorism.

**Source** : [https://www.bot.or.th/en/news-and-media/news/news-20240628-2.html](https://www.bot.or.th/en/news-and-media/news/news-20240628-2.html?rand=113190)