BOT's advice over money laundering

The Bank of Thailand (BOT) has asked financial institutions to take a close look at customers who are politically involved overseas in order to prevent money laundering and the financing of terrorist activities.

The institutions have been told to monitor accounts and transactions by "special" customers and keep records of related documents for at least five years in case a legal probe is needed.

The vigilance is aimed at customers involved in foreign politics, private banking, correspondent banking and with unclear sources of money, according to the BOT. Also earmarked are those close to any person allegedly related to money laundering and those are in high-risk careers such as jewellery, precious metals, foreign exchange and illegal lending.

The institutions should also pay special attention to complicated, abnormally large or illegal transactions. High-ranking executives should be assigned to approve new account applications by these special customers.

A source said the central bank's guidelines were in line with international standards. He said the BOT's guidelines may be adjusted again when the Anti-Money Laundering Office launches its guidelines, which may cover domestic political persons.

Meanwhile, the central bank has also given commercial banks guidelines for business-continuity management to increase the efficiency of operational-risk management.

The plan will ensure that critical units can function continuously after being struck by any unexpected incident such as terrorism, natural disaster, protests or loss of executives.

Each bank should adapt the guidelines that match the type and complexity of its business.

If the banks could not provide critical business facilities, affecting depositors or customers significantly, the banks are instructed to inform the central bank within 24 hours.

Anoma Srisukkasem

Thailand News
The Nation Thailand
Friday January 26, 2007