Legal Updates

TPI’s Corruption Perception Score for Thailand – About the Same as Last Year

Every year Transparency International compiles information from different surveys and indices to create its now famous corruption perceptions index (CPI).  Considering that CPI scores and rankings are a rough proxies for actual corruption, Thailand's position has not changed much.  Last year countries were scored from 0 (most corrupt) to 10 (least corrupt).  Last year Thailand scored 3.4, while this year on a new 0 to 100 scoring system, Thailand scored 37.  Last year Thailand ranked 80, while this year it ranked 88, a ranking shared with Malawi, Morocco, Suriname and Zambia.  

Hearing on Siriwans’ Motion to Dismiss Indictment – Continued with Scheduled Additional Briefing

The motion by Juthamas Siriwan, the former Governor-General of the Tourism Authority of Thailand, and her daughter, Jittisopa Siriwan, (the "Siriwans") to dismiss the U.S. indictment against them on money laundering related charges had been set for hearing on 29 November 2012.  A final ruling on the Siriwans' motion to dismiss the U.S. indictment against them has been continued several times in this heavily briefed matter.   And it has just been continued another time: from 29 November 2012 until 21 February 2013.

Thailand: Money Laundering Blacklisting “Threat Looms Large”

The Bangkok Post is reporting that a draft of an anti-money laundering law that is hoped to remove Thailand from the Financial Action Task Force 's (FATF) "gray list" may not be enacted by the next FATF meeting in February 2013.  According to the Bangkok Post: "The impact of staying on the list is that investors will find it more difficult to make financial transactions with foreign countries and will pay higher fees for financial activities."

Increase in Foreign Anti-Corruption Prosecutions, but not just by US Authorities and not just Against US Companies.

A progress report by Transparency International on enforcement of the OECD Convention on the Combating of Foreign Public Officials in International Business Transactions (the OECD Convention)  reports increased (but still inadequate) enforcement of foreign anti-corruption laws. The signatories to the OECD Convention represent two-thirds of world trade and three-quarters of world investment. In a sense, the OECD Convention is a treaty that requires signatory countries to adopt laws similar to the U.S.’s Foreign Corrupt Practices Act (FCPA).

Ex-TAT Gov Opposes Motion to Continue Status Conference on Motion to Dimiss Indictment

On 26 July 2012 the U.S. government filed a motion requesting the continuance of a status hearing on the motion of Juthamas (the former Governor of the TAT) and Jittisopa (her daughter) Siriwan to dismiss the U.S. indictment against them on money laundering related charges in connection with a Foreign Corrupt Practices Act (FCPA) conviction of Gerald and Patricia Green.  The U.S. government said a continuance was needed because the U.S. had "not received a response from Thailand regarding extradition in this matter."

Status Conference on Ex-TAT Gov’s Motion to Dimiss Indictment Continued

The U.S. government filed a motion requesting the continuance of the status conference on the motion of Juthamas (ex-Govenor of the TAT) and Jittisopa (her daughter) Siriwan to dismiss the U.S. indictment against them on money laundering related charges in connection with a Foreign Corrupt Practices Act (FCPA) case involving Gerald and Patricia Green.  The U.S. government asked for a continuance saying it had "not received a response from Thailand regarding extradition in this matter."  

Coverage of Thai Anti-Corruption Laws Expanded

On 16 March 2012, the NACC issued a notification under Section 100 of the Anti-Corruption Act which prohibits executive and vice-executives of local administrative bodies and their spouses from participating in several commercial activities with the government. Previously, only the prime minister and ministers and their spouses were prohibited from participating in the activities prescribed in Section 100.

Unusual Wealth

The National Anti-Corruption Commission (NACC) has the authority to initiate investigations into whether a person holding a political position or a state official is “unusually wealthy” under Chapter 7 of the Anti-Corruption Act, B.E. 2542, which was amended in April 2011. “Unusual wealth” essentially means wealth that is acquired improperly in connection with the exercise of government powers.

Recent Money Laundering Act Regulations

New regulations have been promulgated under the Thai Anti-Money Laundering Act (AMLA) and all will be effective by the end of August 2011 (the New Regulations). In brief, the main changes introduced by the New Regulations provide as follows:

Expect More Aggressive Enforcement and More International Cooperation

Even before Barrack Obama became the 44th President of the U.S, a sea change in the enforcement of international anticorruption laws had started. The extent of that sea change became evident in December 2008 when Siemens AG and three of its subsidiaries agreed to pay a record U.S. $1.6 billion in fines to U.S. and European authorities for violating the U.S. Foreign Corrupt Practices Act (FCPA) and European anti-bribery laws.