Thailand Country Summary

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 anti-corruption laws and the establishment of organizations like the Anti-Corruption Organization of Thailand, challenges persist due to state-embedded corruption and a politicized judicial system. The country also faces serious problems with human trafficking, drug trafficking, and financial crimes, exacerbated by the COVID-19 pandemic and a lack of effective governance.

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 pro-investment climate, supported by well-developed infrastructure and a civilian-led coalition government that prioritizes foreign direct investment as part of its economic growth agenda. The Foreign Business Act regulates foreign investment, but U.S. businesses benefit from the U.S.-Thai Treaty of Amity, which allows them to maintain majority ownership in many sectors. The Board of Investment (BOI) plays a crucial role in promoting investment by offering incentives and assistance to both domestic and foreign investors.