LEGAL PROBLEMS CONCERNING THE PREVENTION AND SUPPRESSION OF MONEY LAUNDERING IN THE NON-LIFE INSURANCE BUSINESS

Abstract

     In the era of globalization, money plays a pivotal role in sustaining livelihoods, consequently driving certain individuals to acquire assets without regard for the law. This has given rise to increasingly sophisticated economic crimes, particularly money laundering a process whereby proceeds derived from criminal conduct are transformed to assume the appearance of legitimacy, thereby concealing the illicit origins of such assets. Under the Anti-Money Laundering Act B.E. 2542 (1999), non-life insurance companies fall within  the definition of "financial institutions" pursuant to Section 3, thereby subjecting them to stringent compliance obligations, including customer due diligence (CDD), transaction reporting, and record-keeping requirements. Nevertheless, this study finds that the non-life insurance sector presents a relatively low risk of money laundering exposure. Moreover, certain penal provisions remain disproportionate when assessed against the principle of proportionality enshrined in the Constitution of the Kingdom of Thailand B.E. 2560 (2017).                                       Drawing upon jurisprudential analysis and a comparative legal study, the author proposes amending the definition of "financial institutions" under Section 3 to exclude non-life insurance companies, as well as recalibrating record-keeping and customer data retention measures to correspond with the assessed level of risk. Furthermore, this study advocates for the public disclosure of regulatory violations to enhance awareness and transparency in law enforcement. Additionally, Thailand's anti-money laundering framework should be elevated to align with international standards through the development of proportionate penal sanctions, the refinement of operational compliance measures, and the strengthening of international cooperation - thereby ensuring the effectiveness of anti-money laundering prevention and suppression while fostering the stability and sustainability of the non-life insurance industry,  in accordance with the FATF Recommendations and the Risk-Based Approach.