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Thailand Country Financial Crime Dashboard 2024

The financial crime landscape in Thailand
The financial crime landscape in Thailand

Financial Crime News has released a Financial Crime Country Dashboard for Thailand following the Editor’s visit to Bangkok. Appreciation goes to the Thai financial crime fighters in both the public and private sectors who contributed to this report.

Crime Statistics

While there’s no official estimate of the annual value of proceeds from crimes in Thailand or foreign proceeds entering the country, the amount is likely substantial due to Thailand’s strategic location, extensive borders (5,656 km with Malaysia, Myanmar, Laos, and Cambodia), and a long coastline (3,151 km). This geographic positioning facilitates the movement of people, goods, cross-border trade, and funds, alongside its status as a leading tourist destination.

High-Risk Crimes

  1. According to Thailand’s 2022 National AML/CTF/CPF Risk Assessment, the top five high-risk predicate offences for money laundering are:
    Malfeasance in office
  2. Narcotics (including corruption)
  3. Gambling
  4. Natural resources exploitation (including wildlife crime)
  5. Public fraud

Corruption and drug-related crimes are the most severe. Other notable crimes include loan sharking, migrant smuggling, child pornography, and illegal surrogacy. Human trafficking and goods piracy are also significant concerns.

Organized Crime

Foreign criminal groups have been active in Thailand for over a century, engaging in human and drug trafficking and fraud via call centers. The Golden Triangle is a notorious drug production hub. Chinese, Korean, and Taiwanese criminals are involved in online gambling and scams targeting Chinese nationals. No native Thai mafia groups have been identified; instead, foreign criminal diasporas are prevalent. Criminal networks in Thailand are heavily involved in human trafficking, money laundering, and drug trafficking. The return of local elections has raised concerns about a resurgence of criminal gang activities linked to political actors.

Corruption

State-embedded corruption facilitates trafficking and weakens anti-trafficking efforts. High perceived corruption levels deter NGOs from collaborating with the government, and some police officers compromise investigations. Law enforcement officials are hesitant to investigate influential offenders, often opting for administrative punishments over criminal prosecution.

Drug Trafficking

Thailand serves as a transit and destination for heroin from the Golden Triangle. Despite eliminating opium farming and heroin production, drugs continue to be trafficked through Laos. Corruption among officials exacerbates the heroin trade, impacting public health due to HIV and other blood-borne viruses. Thailand’s cocaine market is moderate and influenced by international networks. Recent decriminalization of cannabis aims to promote it as a cash crop. Synthetic drug trafficking remains significant, with methamphetamines being a major issue.

Human Trafficking

Thailand is a source, transit, and destination for human trafficking, affecting women, men and children. Corrupt officials support trafficking networks, exploiting workers through debt-based coercion and deceptive recruitment. Forced labor on fishing boats is a significant problem, with Thailand also serving as a transit hub for trafficked individuals involved in cyber-scam operations.

Human Smuggling

Thailand is a major transit hub for smuggling individuals from neighboring countries, such as Myanmar, Laos, Cambodia, and Vietnam.

Arms Trafficking

Thailand is a transit point for arms trafficking, with weapons moving through the country to Myanmar and Thailand being a destination for arms from Cambodia. Online black markets facilitate the sale of illicit firearms, with corruption allowing for the purchase of gun licenses and discounted firearms.

Goods Piracy

Counterfeit goods production and trade are serious issues, with both domestic and foreign actors involved. E-commerce platforms and social media are increasingly used for this illegal trade.

Goods Smuggling

Thailand is a hub for the illicit trade of excise goods like liquor, tobacco, and playing cards, involving both domestic and foreign criminals and state-embedded actors.

Wildlife Crime

Timber Illegal logging and trafficking of rosewood are significant problems, with smuggling routes through Cambodia, Laos, and Vietnam. Corrupt officials may enable deforestation by allowing illegal logging.
Animals Thailand has a large illegal wildlife trade market, involving various animals and products. The country serves as a source, transit, and destination area, with seaports and postal services facilitating illegal wildlife deliveries.

Illicit Extracted Products

Thailand is attractive for the transit and destination of oil, fuel, and precious stones due to its strategic location. The gemstone market, particularly for rubies and sapphires, is significant, with corruption enabling smuggling.

Cyber Crimes

Cybercrime has risen, especially post-COVID-19. Ransomware, metaverse-related attacks, and critical infrastructure attacks are major threats. The financial, utility, and healthcare sectors are particularly vulnerable due to the lack of appropriate monitoring and reporting.

Financial Crimes

Thailand faces escalating financial crimes, including fraud, tax evasion, and embezzlement. Advanced technologies enable scams like romance scams, Ponzi schemes, and voice phishing. Cyber-enabled financial crimes are prevalent, with call center scams targeting the elderly. There’s a strong link between transnational human trafficking and financial fraud.

Terrorism and Terrorism Finance

The risk of terrorism has decreased significantly since the peak of ethno-nationalist insurgent violence. However, terrorism is still considered a high risk. Terrorism finance is rated as a medium risk, with significant risks in fundraising, moving funds, and TF channels involving cash couriers and unregulated digital asset platforms.

Proliferation Finance

Rated at medium risk, the highest risks are in economic sanction evasion, dual-use items trading, and financial sanction evasion of designated persons.

Sector Risks

High-risk sectors include banks, specialized depository financial institutions, unregulated digital asset providers, business nominees, cross-border cash couriers, and trade-based money laundering.

Country Risk

For an overview of financial crime risks posed by third countries to Thailand, refer to the chart from the NRA 2022.

 

The “Thailand Country Financial Crime Dashboard 2024” provides a comprehensive overview of the financial crime risks and responses in Thailand, including regulatory frameworks, recent enforcement actions, and risk assessments.

For more detailed information, you can read the full article here.

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