FATF status

Thailand is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Thailand was undertaken in 2023. According to that Evaluation, Thailand was deemed Compliant for 4 and Largely Compliant for 29 of the FATF 40 Recommendations. It was also deemed Highly Effective for 0 and Substantially Effective for 4 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Thailand ranks 108 out of 180 countries on Transparency International’s Corruption Perceptions Index, indicating significant corruption issues, particularly in government licensing and approvals. Despite having a legal framework to combat corruption, including the Organic Law on Counter Corruption and various anti-corruption initiatives, enforcement remains weak, and bribery persists in many sectors. U.S. companies are advised to adhere to the Foreign Corrupt Practices Act to mitigate risks associated with corrupt practices.

Thailand is an upper middle-income country with a robust economy valued at half a trillion dollars, characterized by pro-investment policies and advanced infrastructure. The civilian-led coalition government, formed after the May 2023 elections, has prioritized foreign direct investment and domestic stimulus as key components of its economic growth strategy, making Thailand a significant destination for foreign investment, particularly from U.S. companies.

Thailand has a generally favorable investment climate characterized by pro-investment policies and a well-developed infrastructure, making it a significant destination for foreign direct investment. The government prioritizes foreign investment through the Board of Investment (BOI), which offers incentives and assistance to both domestic and foreign investors, particularly in high-tech and sustainable industries. Additionally, the U.S.-Thai Treaty of Amity provides U.S. investors with exemptions from many foreign investment restrictions, further enhancing the attractiveness of Thailand as an investment hub.