What is Thailand's AMLO?

As Thailand's financial sector increases fast, their risk of financial crimes such as money laundering and terrorist financing is also increasing. In order to protect the countryʼs financial system, Thailand has established a specially regulatory authority, which is the Anti-Money Laundering Office (AMLO). They lead the defense measurement to fight against illicit financial activities.

What Does AMLO Stand For?

The AMLO, known in Thai as สาํ นักงานปอ งกนัและปราบปรามการฟอกเงนิ was established in 1999 under the Anti-Money Laundering Act (AMLA). 

What Is Its Role in Thailand?

AMLOʼs role is to act as;

• Thailandʼs Financial Intelligence Unit (FIU), and it operates independently from the police and judiciary. However, it reports to the Minister of Justice.
• Its key core functions are analyzing financial transaction reports, freezing assets that could be related to illicit financial activity, collaborating with other international partners, and representing Thailand and its global Anti-Money Laundering (AML) assessments.

Key Responsibilities of AMLO

Transaction monitoring: Receive Suspicious Transaction Reports (STRs) and Currency Transaction Reports (CTRs) from reporting entities and then analyzes them in case of signs of illicit and unlawful financial activities.

Freeze and Confiscate Assets: AMLO has the power to freeze and confiscate assets that are suspected of being related to crimes like drug trafficking, organized crime, corruption, and terrorism.

Collaborate Internationally: AMLO collaborated with global partners, which include the Financial Action Task Force (FATF), the Asia/Pacific Group on Money Laundering (APG), and the Egmont Group of FIUs, which in turn engages its global AML efforts and participates in international evaluations.

Enforce Compliance: AMLO ensures businesses meet their AML/CFT obligations.

What Are the Main Functions of AMLO?

AMLO's daily operations are these three main areas:

Collect and Analyze Reports: AMLO's operations process different types of reports, such as STRs, CTRs, and property transfers, and identify unusual patterns or signs that could be perceived as financial crime risks.

Asset Freezing and Investigations: AMLO can freeze and even confiscate property that is suspected of being related to illegal activity. Furthermore, they work tightly with authorities such as the Royal Thai Police, the Office of the Attorney General, and the Revenue Department in order to achieve legal actions.

International Representation: As Thailandʼs FIU, AMLO is a part of FATF mutual evaluations, which then contributed to further developing global AML standards, and shares intelligence with counterparts around the world.

Who Must Report to AMLO Thailand?

This law regulates a broad range of entities, and it requires these entities to register with and report to AMLO, which includes

Financial Institutions: More than 30,000 institutions, which include banks, credit unions, securities firms, and insurers, are all required to submit transaction reports and maintain compliance programs.

Designated Non-Financial Businesses and Professions (DNFBPs): This category includes over 15,000 entities like real estate brokers, jewelers and precious metal dealers, and automobile traders, all of which are subject to AML reporting rules and regulations.

Virtual Asset Service Providers (VASPs): Around 50 regulated crypto exchanges and digital asset platforms are under AMLO oversight alongside the Securities and Exchange Commission (SEC) Thailand.

Professionals: Over 10,000 lawyers, accountants, and notaries who are involved in financial transactions are also obligated to comply with AML obligations, specifically when they are managing their clientsʼ funds or those that are operating with large asset transfers.

All obligated entities in Thailand are required to register with the AMLO and submit reports through the official goAML portals.

What Are the Reporting Requirements to AMLO?

Thailand has well-structured and defined AML reporting requirements in which entities should always keep in mind and be aware of the following requirements:

Suspicious Transaction Reports (STRs): Entities are required to file STRs when they have detected an unusual or possible transaction that could be related to money laundering or terrorism financing.

Currency Transaction Reports (CTRs): Cash transactions over ฿2 million (around $55,000 USD) must be strictly required to be reported to AMLO, even if the transaction does not appear suspicious on the surface level.

Property Transaction Reports: Transactions that involve real estate, high-value assets, or luxury goods are also required to be reported, which ensures transparency in asset transfers.

Virtual Asset Transactions: VASPs are obligated to monitor and report suspicious crypto-related activity in order to ensure compliance with AML regulations.

How Does Thailandʼs goAML Platform Work?

goAML is a platform where digital reporting is submitted by MALO and developed by the United Nations Office on Drugs and Crime (UNODC). This platform makes it easier for financial institutions and businesses to report STRs, CTRs, as well as other regulated activities.

Features of goAML

• Secure Reporting: The platforms guarantee that sensitive financial data is secured during submission.
• Bulk Upload Capability: For high-volume reports, XML-based bulk uploads help reduce manual work, which in turn helps improve efficiency.
• Case Feedback Mechanism: Entities receive feedback and insights on submitted reports, which help them improve and refine their compliance procedures.
• User-Friendly Interface: goAML is established to be accurate, which allows users to navigate and submit reports without the hassle of extensive technical training.

The goAML platform is available, and it acts as the official reporting tool for all businesses required to submit or file AML reports in the country. On top of that, it supports and fosters transparency and coordination between reporting entities and AMLO

What Is the Legal Framework for AML/CFT in Thailand?

Thailand and its AML and CFT efforts are always supported by a strong foundational framework. The main legislations include the AML Act (B.E. 2542 / 1999) and Counter Terrorism Proliferation of Weapons of Mass Destruction Financing Act (2016). All of these align with the countryʼs financial oversight with global FATF standards.

AML/CFT Programs Must Include

Know Your Customer (KYC): Entities are obligated to verify their customersʼ identities through utilizing documents and monitoring accounts in order to prevent and avoid illicit money.

Risk-Based Monitoring: Organizations need to utilize data-driven methods to detect high-risk clients and transactions, which focus compliance efforts where risks are severely high.

Internal Policies and Governance: Companies are anticipated to have and maintain clear strategic AML policies and train staff consistently in order for them to stay up to date on threats, risks, and regulatory expectations. 

Regulatory guidance comes from AMLO, the Bank of Thailand (BOT), and the SEC, with increased focus on high-risk sectors such as fintech and cryptocurrency.

How Are Cryptocurrency Businesses Regulated by AMLO?

Because of the fast growth of the crypto market, Thailand has established an even stricter set of rules and regulations for VASPs. AMLO and SEC collaborate in order to ensure that these businesses work within strong AML standards and have systems that track and report suspicious activity.

Obligations for Crypto Businesses In order to meet AMLO and SEC expectations, VASPs must:

Register and Report: All VASPs are required to register with the SEC and consistently submit compliance reports to AML.

Monitor all transactions: Entities are required to identify and report high-risk activities such as unusually large transfers or dealings with blacklisted jurisdictions or individuals.

File STRS: STRs must be strictly submitted through the goAML platform for any suspicious flagged digital asset activity.

What Enforcement Powers Does AMLO Have?

AMLO can take direct action that ensures compliance. Some of their capabilities include freezing assets, issuing administrative fines or charges, and performing public disclosure. By doing so, AMLO ensures compliance and prevents financial crime.

Statistics: In 2023, AMLO has penalized more than 70 organizations due to them failing to meet STR/CTR filing requirements.

How Can Businesses Stay Compliant With AMLO?

In order to meet AMLOʼs expectation, entities and organizations are required to adopt the following steps:

Appoint a Money Laundering Reporting Officer (MLRO): Every entity must have an officer who is responsible for managing AML compliance and overseeing filings.

Register with goAML: Ensure that entities do due registration and utilize a system that allows for STRs and CTRs reporting effectively.

Implement RegTech Tools: Have an automatic risk screening, monitor transactions, and also prepare XML format reports to make compliance easier.

Recommendation: At Sanction Scanner, we provide real-time AML solutions for Thai businesses that will help them meet AMLO standards.

From Compliance Into Competitive Advantage

Following AMLOʼs expectations and requirements helps ensure regulatory protections as well as strengthen stakeholdersʼ confidence. Through compliance with AM/CFT control, entities and businesses establish strong trust, which prevents risks of penalties. On top of that, they stay ahead of financial crime risks and threats. Take the next step with Sanction Scanner, where we will help you serve as an intelligent compliance partner, considering Thailandʼs evolving legal environment.