Connect with us
The clever new way to send money abroad


Maximum levels of Corruption hitted Thailand in 2012

More than $35 billion was illicitly drained from Thailand through money laundering, tax evasion, crime and false trade documentation in 2012, according to Global Financial Integrity latest report.



More than $35 billion was illicitly drained from Thailand through money laundering, tax evasion, crime and false trade documentation in 2012, according to Global Financial Integrity latest report.

2012 is marking the fourth-consecutive annual increase in corruption-tainted outflows, a US think tank said. Washington-based group Global Financial Integrity said. Thailand moved up to eighth on the list of developing countries with the most illegal capital outflows in the decade through 2012.


Source :

Only Indonesia, ranking seventh, Malaysia, at fifth, and China, in first, were more corrupt in Asia. However, unlike Indonesia and, particularly, Malaysia, Thailand has been backsliding on fighting corruption related to its international trade.

The report finds that from 2003 to 2012, developing countries lost US$6.6 trillion to illicit outflows. The outflows increased at an average inflation-adjusted rate of 9.4% per year over the decade—significantly outpacing GDP growth.

As a percentage of GDP, Sub-Saharan Africa suffered the biggest loss of illicit capital. Illicit outflows from the region averaged 5.5% of GDP annually. Globally, illicit financial outflows averaged 3.9% of GDP.

During the Shinawatra family ruling, from 2006 to 2012, corruption more than tripled in Thailand from 11,513 million USD to 35,561 in 2012.

The National Anti-Corruption Commission (NACC) is completing a probe into a case involving alleged corruption by Yingluck and former senior officials at the Commerce Ministry. The attorney-general would then be expected to process the two cases within a month before they could be passed to the Supreme Court.

“[The former prime minister] continued the rice-pledging scheme and incurred more losses for the state, even though [she] had the authority to stop or end it,” said the head of the investigation, Vicha Mahakun,announcing the decision.

The rice deal with China that never existed

The case against Yingluck’s handling of the paddy pledging-scheme is an allegedly fraudulent government-to-government contract for five million tons of rice signed with China in 2012.

The Guangzhou-based company executing the deal, GSSG Import and Export Corporation, was represented by Rathanit Sojirakul, an aide to Pheu Thai MP Rapeephan Phongruangrong, the wife of pro-Shinawatra “Red Shirt” leader Arisman Phongruangrong. China later pulled out on account of the corruption probe that followed, and the NACC has since tried but failed to contact GSSG to confirm the deal ever existed, according to an article published by The Diplomat.

“Normally, if it’s a government-to-government deal the money must come from China as a letter of credit, but there was no letter of credit just a check cashed in Thailand,” said Warong Dechgitvigrom, the Democrat Party MP who compiled evidence against the rice scheme.

Trade Misinvoicing Dominant Channel

The fraudulent misinvoicing of trade transactions was revealed to be the largest component of illicit financial flows from developing countries, accounting for 77.8 percent of all illicit flows—highlighting that any effort to significantly curtail illicit financial flows must address trade misinvoicing.

Country 2006 2007 2008 2009 2010 2011 2012 Average
Thailand 11,513 10,427 20,550 14,755 24,243 29,322 35,561 17,168

China leads the world over the 10-year period with US$1.25 trillion in illicit outflows, followed by Russia, Mexico, India, and Malaysia. China also had the largest illicit outflows of any country in 2012, amounting to a massive of US$249.57 billion in just that one year.

Rank Country Average Annual Illicit Outflows
(Where Data Is Available)
Cumulative Illicit Outflows
All Developing Countries 658,713 6,587,133
1 China, P.R.: Mainland 125,242 1,252,419
2 Russian Federation 97,386 973,858
3 Mexico 51,426 514,259
4 India 43,959 439,587
5 Malaysia 39,487 394,869
6 Saudi Arabia 30,862 308,620
7 Brazil 21,710 217,103
8 Indonesia 18,784 187,844
9 Thailand 17,168 171,679
10 Nigeria 15,746 157,455
1 Comment

1 Comment

  1. paul

    December 23, 2014 at 2:27 pm

    Yet since this corrupt rating, Thailand has dropped a number of notches, so you better update your data Oliver! The current regime has been nothing short of spectacular in cleaning up on all different levels, well beyond any previous democratic government was able to do.

    Yet, this is hardly reported because its been done by a non-elected government which the West determines is bad, not matter what. There is more then one way to modernization.

Leave a Reply


Bangkok 7th World Most connected city to China

Bangkok also ranks 3rd in terms of the volume of Chinese corporate leasing activity over the last three years, according to a new report from real estate consulting firm JLL.



While China’s biggest corporates are increasingly flexing their global muscle as the country’s economic and geopolitical influence accelerates, Bangkok is the 10th most popular destination for mainland firms expanding overseas. (more…)

Continue Reading


Thailand’s Special Economic Zones (SEZ) and new opportunity connected

The SEZ policy was first launched in 2015 based on the government’s belief in the strong potential of the 10 areas to connect with the neighboring countries in terms of trade, economy and investment




With its strategic location in the center of ASEAN with emerging markets, including Cambodia, Laos, Myanmar, Malaysia and southern China, on its border, Thailand is well position to connect investors to new opportunities arising from the increasing border trade and the region’s rapid economic growth.

Continue Reading

Most Read