Thailand Strengthens Anti-Money Laundering Laws with New Amendments

Thailand has taken an important step in the fight against financial crime. On the approval of two new legislative amendments aimed at strengthening its anti-money laundering (AML) laws. On February 25, 2025, the Thai cabinet, led by Prime Minister Paetongtarn Shinawatra, approved amendments of the Anti-Money Laundering Act. These new laws introduce stricter regulations, expand financial oversight, and align Thailand’s legal framework with international AML standards.

What are the Main Changes in Thailand’s Anti-Money Laundering Law?

Expanded Definition of Predicate Offenses

Under the new law, predicate offenses - which refer to crimes that can lead to money laundering - have been broadened to cover additional illegal activities. 

These include:

• Tax evasion and fraudulent tax schemes within criminal networks.
• Financing of terrorism and weapons proliferation
• Human trafficking and forced labor
• Child pornography offenses under the Penal Code.
• Financial fraud involving digital assets and futures trading
• Usury (charging excessive interest rates)
• Collusion in government contract bidding

However, the law also removes offenses related to unfair trading in agricultural futures markets, ensuring that only relevant financial crimes are covered.

Greater Regulatory Oversight for Financial Institutions

The updated AML laws now extend supervision to a wider range of financial institutions, including:

• Banks, finance companies, securities firms, and life insurance companies.
• Savings cooperatives and credit unions with capital exceeding 50 million baht.
• Credit card companies, foreign exchange services, digital asset platforms and fintech companies.

By including more financial institutions, the authorities aim to close loopholes that criminals could exploit to launder money.

Stricter Regulations for Criminal Networks

A criminal network is now legally defined as a group of three or more individuals collaborating in illegal financial activities for material gain, either directly or indirectly. This broader definition gives law enforcement stronger tools to dismantle organized crime operations.

Enhanced Reporting Requirements

Financial institutions and professionals will need to meet tougher reporting standards under the new laws. Key changes include:

• Mandatory updates on significant changes to previously reported financial activities.
• Agricultural cooperatives with over 100 million baht in capital must adhere to financial reporting standards.
• Cross-border transaction tracking - Customs officers must report cross-border cash transfers in compliance with exchange control regulations.
• Customs officers must report cross-border transfers of cash and monetary instruments to comply with exchange control regulations.
• Increased transparency for trustees, vehicle leasing businesses, and antique/artwork dealers.
• Non-profit organizations receiving large foreign funds must report financial details to prevent potential misuse.
• The Anti-Money Laundering Office (AMLO) will introduce stricter guidelines for high-risk transactions and record-keeping.

Stronger Asset Management and Forfeiture Rules

The new law provides better protection for legitimate property owners while tightening regulations on assets linked to financial crimes. Changes include:

• Owners who have unknowingly held property involved in money laundering can request the immediate return of their assets.
• AMLO can seek court-ordered confiscation of properties, including those with mortgages, if the buyer is proven to have knowingly facilitated money laundering.
• Unclaimed non-criminal assets will be transferred to the Anti-Money Laundering Fund if not claimed within 10 years.

Adjusted Penalties for Non-Compliance

To ensure enforcement remains fair and proportional, penalties have been revised:

• Failure to provide requested documents or testimony without a valid reason can lead to up to one year in prison or a fine of up to 20,000 baht.
• Some previous penalties, such as those for failing to assist AMLO officers, have been removed.

Simplifying the Legal Framework: The Repeal Act

Alongside the new AML amendments, the Draft Act on the Repeal of Legal Provisions Defining Predicate Offenses aims to streamline Thailand’s regulatory framework by removing redundant predicate offense definitions from multiple laws. Key repealed provisions include:

• Tax evasion - Previously applied to fraud involving at least 10 million baht per year or fraudulent tax refunds exceeding 2 million baht per year.
• Forced labor - Covering cases of labor exploitation through coercion, document withholding, and debt bondage.
• Participation in transnational organized crime - Now integrated into a broader AML framework.
• Terrorism financing - Targeting financial assistance to known terrorist organizations.

By removing outdated or duplicate offenses, the law streamlines enforcement and focuses on modern financial crime risks.

What This Means for Thailand’s Financial System

These legislative updates represent a major milestone in Thailand’s ongoing efforts to combat money laundering, terrorist financing, and financial fraud. By aligning with international best practices, the new laws will:

• Enhance financial transparency.
• Strengthen regulatory enforcement.
• Improve financial stability.
• Build greater confidence among international investors.

What Businesses and Financial Institutions Need to Know

With these legal updates, businesses, banks, and financial service providers must ensure they comply with the new AML regulations. This means:

• Implementing stronger compliance procedures.
• Conducting enhanced due diligence on financial transactions.
• Training employees on the updated legal framework.
• Strengthening internal reporting mechanisms to prevent violations.

Final Thoughts

Thailand’s new anti-money laundering laws reflect the government’s commitment to financial security and international cooperation. By closing loopholes, strengthening enforcement, and increasing transparency, these amendments will help Thailand combat financial crime while fostering a more stable and trustworthy economic environment.