DIFFERENT ANGLE by Kenneth Rijock
The military government of Thailand has pointed a finger at ousted Prime Minister Thaksin Shinawatra, or his supporters, in connection with the New Year's Eve Bangkok bombings. In light of the extreme steps taken recently by the regime to control foreign investment capital flight, banks that number Thaksin and his close associates as customers could end up sanctioned, or even charged with criminal violations. We strongly suggest that the risks of banking Thailand's allegedly corrupt former leader and his inner circle outweigh the benefits, and could endanger the financial institution itself in the country's chaotic domestic political situation, with the country essentially under military control.
The military government has gone out of its way to suggest that Thaksin supporters, and not the radical Islamic rebel insurgency in the south of Thailand, committed these terrorist acts. As such, banks serving Thaksin, or his family and close associates, may suffer "guilt by association " at the hands of the present government.
Whilst we have seen no overt evidence of a targeting of banks known to be associated with Thaksin or his supporters, prudence demands that compliance officers at financial institutions take steps to ascertain whether they actually bank the former prime minister. This should extend to foreign banks that have subsidiaries, branches or representative offices inside Thailand as well as domestic Thai banks.
MLROs and compliance officers should advise senior management if their enquiries produce positive results.
The facts and opinions stated in this article are those of the author and not those of World-Check. World-Check does not warrant the accuracy of any facts and opinions stated in this article, does not endorse them, and accepts no responsibility for them.
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