Thai financial authorities tighten controls to block militant funds

Thailand’s Anti-Money Laundering Office (Amlo) and the Bank of Thailand have agreed joint efforts to trace illegal money flows in the wake of Sunday’s insurgent offensive in four southern border provinces which killed at least seven and injured more than 50 people.

Commercial banks are required, with immediate effect, to report any withdrawals worth over Bt2 million to Amlo to help the authorities trace and block suspected terrorist funds, said senior officials.

Tarisa Watanagase, central bank governor and Amlo secretary-general Yutthabul Dissamarn signed a memorandum of understanding Tuesday to enhance interagency coordination to combat money laundering and terrorist financing.

Law enforcement agencies have long feared that proceeds of crime may have provided the fuel for militant activities in the Muslim-majority south.

Ms Tarisa said the more stringent reporting would serve as a precaution. Any suspicious transactions would be investigated and interrupted, she added. The requirement also put a burden on banks to check the customer identity and the source of funds.

Pol Col Yutthabul said his office found nothing suspicious about financial movements in and out of the restive region since the latest wave of bombings, arsons and shootings on Sunday night, but it has stepped up monitoring and intelligence gathering of all terrorist-related financial and fundraising activities.

He added that a similar reporting requirement was imposed in late 2003, before the militants raided an army camp in Narathiwat on Jan 4, 2004 – an incident which was believed to mark the start of the current onslaught of violent attacks in the deep south.

Commercial banks were then ordered to report any suspicious movements of funds to his office after officials were put on alert by unusually large sums – in the form of donations to charities and religious schools - being transferred from abroad into several bank accounts in southern border provinces before the Jan 4 coordinated attacks were launched.

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