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ECONOMIC CRIME IN THAILAND AND PREVENTIVE MEASURES
I. Crime in Thailand
It is generally accepted that all countries in Southeast Asia are developing countries.
Among these countries, Thailand was once the strongest economy in the region. But after the
military Coup d’état in 2006 (There were about twenty five military Coup d’état in Thailand since
1932) the economy and credit of the country are going down.
Like most developing countries, Thailand is mainly concerned with economic and social
development of the country for well being of her citizens
On this reason, Thailand faces with various kinds of problems such as problem of
economic crisis, unemployment, bankruptcy in business sections including financial institutions
and security markets.
The other problems are poverty, education, health, traffic, environment, corruption (both
in public and private sectors) problem in political crisis and problems of crime.
Generally, “Crime” means offences for which is severe punishment by law and such
offences are collectively law breaking.
Not only “Street Crimes” such as homicide, rape, larceny, extortion, robbery, gangrobbery, drug offence, organized crime and trans national crime are serious problems of Thai
government but also “Economic Crime, Money Laundering, Financial Crime and Net crime” are
very serious problems in this decade.
Focusing on “Economic Crime or White Collar Crime” another kinds of White CollarCrime is Occupational Crime, Commercial Crime, Economic Crime, Business Crime, Financial
Crime and Computer Crime. Which means crimes committed by a person of respectably and high
social status in the course of his occupation 1

Prof.Viraphong Boonyobhas, director of Business Crime and Money Laundering Data Bank, Faculty of Law,
Chulalongkorn University, Thailand
1
Hizel Croall “Understanding White Collar Crime” Open University Press, Buckingham, Philadelphia. P. 12-13
2
In the 1983 Annual Report of the Attorney General, Economic Crime or white Collar
Crime were defined as follow
“Illegal acts that use deceit and concealment rather than the application or threat of
physical force or violence - to obtain money, property, or service; to avoid the payment or loss of
money; or to secure a business or professional advantage.
Economic Crime occupy positions of responsibility and trust in government, industry the
professions and civic organizations.
Comparing between Street Crime and Economic Crime2
Street Crime
1. Offender unnecessary to have good
knowledge.
Economic Crime
1. Offender necessary to have good knowledge
or expert such as bankers, businessmen and
share manipulators.
2. Most of Street Crime are Violence Crimes. 2. Most of Economic Crimes are Non-Violence
Crime.
3. It is not difficult to fine evidences in Street 3. It is very difficult to fine evidences in
Crime.
Economic Crime especially Financial Crime
and Net Crime.
4. The result of Street Crimes usually effects to 4. The result of Economic Crimes effects to
life, body freedom and property of the injured Economic, Financial and Business of the
person.
country.
5. Criminal Justice Agencies usually succeed in 5. Criminal Justice Agencies usually unsucceed
enforcing law on Street Crimes.
in enforcing law on Economic Crime.
2
Viraphong Boonyobhas, Professor “Economic Crime”, sixth edition 2010, p.15
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II Classification of Economic Crime in Thailand
The classification of Economic Crime can be mention into 2 kinds they are
1. Classification of Economic Crime of Commonwealth
2. Classification of Economic Crime of Interpol
Classification of Economic Crime of Commonwealth
1. Corporate Fraud (managerial and employee)
2. Securities Fraud (E.G. The issuance of worthless stock, bond washing and market
manipulation, insider trading)
3. Market and trading abuses (e.g. illegal restrictive practices and monopolies)
4. Manipulation of markets (e.g. securities and commodity
5. Smuggling
6. Exchange control violations and illegal currency smuggling
7. Counterfeiting of currency and valuable negotiable documents
8. Forgery
9. Franchise frauds
10. Loan scharking and illegal moneylending
11. Fraudulently obtaining government subsidies
12. Social security and welfare frauds
13. Fradulent insurance claims
14. Shipping frauds (e.g. cube-cutting, wrecking, sale of non-existent cargo)
15. Credit card frauds
16. Economic and industrial espionage
17. Bribery and corruption
18. Tax evasion
19. Pirating of records, films, publications etc. (including copyright and trade mark
violation)
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20. Advance fee frauds
21. Fraudulent factoring
22. Criminal banking
23. Frauds associated with bankruptcy and insolvency (including fraudulent trading,
trading whilst and undischarged bankrupt, fraudulent and preference etc.)
24. False accounting
25. Computer fraud
Classification of Economic Crime of Interpol
1. Banking related frauds.
- Advance fee frauds
- Forged and fraudulent letter of credit promissory note and bills of exchange
- Other fraudulent bank money transfers
- Maritime fraud relating to forged and fraudulent bills of lading
2. Commercial frauds
- Wholesale purchasing frauds
- Bankruptcy criminal and fraudulent trading
- False accounts and conversion of company property
- Forged contracts and fraudulent invoicing
- Telephone sales frauds
- Trade and Telex directory frauds
- Counterfeit ion of products and copyright (criminal)
- Pyramid sales
- Fake companies
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3. Retail payment frauds
- Stolen and counterfeit cheques, traveller’s cheques and Euro-cheques
- Insufficiently funded cheques
- Credit cards (stolen, altered)
- Automatic cash dispenser frauds
- False identity documents
4. Investment related frauds
- Securities : stocks, shares bonds (stolen, false)
- Commodity futures frauds
- Land, villa and mobile home frauds
- Insider dealing
- Miscellaneous frauds
- Computer related crimes
- Insurance frauds
- Government and ECC subsidy frauds
- Philatelic fraud
- Gaming frauds
- Hiring of labor frauds
- Airline tickets frauds
- Other transport frauds
- Tax frauds
- Exchange control violation
- Corrupting (normally only in the public sector)
- Misuse of on trusted property
- Bogus academic institutions and qualification
The classification of Thai Economic Crime is the same as Interpol.
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III. ECONOMIC CRIME AND PROBLEM IN ENFORCING LAW3
It can be said that Economic Crimes are very difficulty to enforce law. Enforcing law
problems about these crimes are
1. Problem on reporting crime because the victims usually believe in the large
amount of benefit which the offenders promise to give so there are no reporting
crime at the beginning of crime. After that, when the damages occur which
means two or three years from the beginning. The reporting crime are done so
at that time there are no evidences left or all the money obtained is sent to the
foreign counties.
2. Problem on understanding the offense which the offender committed which
usually concern with business, capital market, financial institution and
Computer Crime.
3. The offender usually use financial influence or political influence which come
from the benefit of crimes to obstruct the law enforcement agencies.
4. Economic Crimes usually commit in the form of Organized Crime which is
very difficult to enforce law.
5. There is very few citizen co-operation with criminal justice agencies because
Economic Crime is non-violence crime which they do not blame this kind of
crimes as Street Crimes
IV. THAI ENFORCEMENT AGENCIES THAT ENFORCE THE ECONOMIC CRIMES
Thai enforcement agencies to enforce the law on Economic Crimes are as follow
1. Economic Crime suppression Division of Royal Thai Police
2. Technology Crime suppression Division of Royal Thai Police
3. Department of Special Investigation of Ministry of Justice
3
Ibid p. 22-23
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4. Department of Economic Crime Litigation of Office of Attorney General
5. Department of Special Litigation of Office of Attorney General
V. PREVENTIVE MEASURES FOR ECONOMIC CRIME IN THAILAND.
It is the fact that crime which is very difficulty to enforce law is “Economic Crimes” so
the law enforcement agencies must use both prevention and suppression measures on these kind
of crimes but the preventive measures are more effective because;
1. It saves the budgets of the country than setting the new agency or increase the
law enforcers to suppress the crime.
2. The effective of prevention can be used to stop the crime more widespread.
3. Preventive measures need not to use the law enforcer as much as suppression
measures.
The preventive measures that use to control the Economic Crimes in Thailand are as
follow
1. Preventive measure by using Anti-Money Laundering4 to report the cash
transaction and suspicious transaction to Anti-Money Laundering Office which
provides in Anti-Money Laundering Law in Chapter II “Report and
Identification”
4
Money Laundering Control Act. A.D. 1999
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CHAPTER II
REPORT AND IDENTIFICATION
---------------Section 13 When a transaction is made with a financial institution, the financial
institution shall have the duty to report that transaction to the Office when it appears that such
transaction is:
(1) A cash transaction exceeding the threshold prescribed in the Ministerial
Regulation;
(2) A transaction connected with the asset worth more than the value prescribed in
the Ministerial Regulation; or
(3) A suspicious transaction, whether it is the transaction under (1) or (2) or not.
In the case where there appears any fact which is relevant or probably beneficial to
the confirmation or cancellation of the fact concerning the transaction already reported by the
financial institution, that financial institution shall report such fact to the Office without delay.
Section 14 in the case where there subsequently appears a reasonable ground to believe
that any transaction already made without being reported under section 13 is a transaction
required to be reported by a financial institution under Section 13, that financial institution shall
report it to the Office without delay.
Section 15 A land Office of Bangkok Metropolitan, Changwad Land Office, Branch Land
Office and Amphoe land Office shall report to the Office when it appears that an application is
made for registration of a right and juristic act related to an immovable asset to which a financial
institution is not a party and which is of any of the following descriptions:
(1) requiring cash payment in a larger amount than that prescribed in the
Ministerial Regulation;
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(2) involving a greater value of an immovable asset that that prescribed in the
Ministerial Regulation, being the assessment value on the basis of which fees
for registration of the right and juristic act are levied, except in the case of a
transfer by succession to a statutory heir; or
(3) being made in connection with a suspicious transaction
Section 165 Professions stated below shall have the duty to report to the Office any
transaction when it is carried out in cash of a value exceeding the amount prescribed in the
Ministerial Regulation or is a suspicious transaction. However, profession under (2), (3), (4) and
(5) must be a juristic person, unless there is probable cause to suspect under reasonable evidence
that such transaction is related or may be related to the commission of a predicate offense or
money laundering offense with profession under (2), (3), (4) and (5) that is not a juristic person,
the Office shall have the power to give a written order to such profession to report the transaction
to the Office:
(1) Profession that undertake provision of advice or being an advisor in
transactions relating to the investment or movement of funds, under the law
governing securities and stock exchange, and that are not a financial institution
under Section 13.
(2) Profession relating to trading of precious stones, diamonds, gems, gold, or
ornaments decorated with precious stones, diamonds, gems, or gold.
(3) Professions relating to trading or hire-purchase of cars.
(4) Professions acting as a broker or an agent in buying or selling immovable
property.
(5) Professions relating to trading of antiques under the law governing selling by
auction and trading of antiques.
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Section 16 paragraph one amended in accordance with the Anti-Money Laundering Act (no. 3) B.E. 2552 (2009)
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(6) Profession relating to personal loan under supervision for businesses that are
not a financial institution under the Ministry of Finance Notification relating to
Personal Loan businesses under Supervision or under the law governing
financial institution business.
(7) Professions relating to electronic money card that are not a financial institution
under the Ministry of Finance Notification relating to electronic money card or
under the law governing financial institution business.
(8) Professions relating to credit card that are not a financial institution under the
Ministry of Finance Notification relating to credit card or under the law
governing financial institution business.
(9) Professions relating to electronic payment under the law governing the
supervision of electronic payment service business.
In the case where there appears any fact which is relevant or probably beneficial to
the confirmation or cancellation of the fact concerning the transaction already reported under
paragraph one, that person shall report such fact to the Office without delay.
Section 17 The report under Section 13, Section 14, Section 15 and Section 16 shall be in
accordance with the form, period of time, rules and procedures prescribed in the Ministerial
Regulation.
Section 18 Any transaction that the Minister deems appropriate to be exempted from
reporting under Section 13, Section 15 and Section 16 shall be as prescribed in the Ministerial
Regulation.
Section 19 In the case where the report under Section 13, Section 14, Section 15 and
Section 16 has been made in good faith by the reporter, if the report causes injury to any person,
the reporter shall not be responsible therefor.
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Section 206 Financial institutions and professions under Section 16 shall require all
customers to identify themselves prior to conducting any transaction as prescribed in the
Ministerial Regulation, unless that customer has previously done so. There shall also be a
measure to eliminate obstacles in identification procedures for the disabled or incapacitated.
The identification under paragraph one shall be in accordance with the procedure
prescribed by the Minister.
Section 20/17 Financial institutions and professions under Section 16(1) and (9) shall
issue customer acceptance policy and risk management that may related to money laundering and
shall undertake customer due diligence when the first transaction is carried out and periodically
reviewed until the account is closed or relationship has been terminated.
The scope of due diligence procedures under paragraph one shall be in accordance with
the rules and procedures prescribed by the Ministerial Regulation on customer identification,
customer due diligence, customer review and monitoring of customers’ accounts that are named
by the Office.
Section 21 In making a transaction under Section 13, a financial institution shall also
cause a customer to record statements of fact with regard to such transaction.
In the case where a customer refuses to prepare a record of statements of fact under
paragraph one, the financial institution shall prepare such record on its own motion and notify the
Office thereof forthwith.
The record of statements of fact under paragraph one and paragraph two shall be in
accordance with the form, contain such particulars and be in accordance with the rules and
procedures as prescribed in the Ministerial Regulation.
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Section 20 paragraph one amended in accordance with the Anti-Money Laundering Act (No.3) B.E. 2552 (2009)
Section 20/1 added in accordance with the Anti-Money Laundering Act (No.3) B.E. 2552 (2009)
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Section 228 Unless otherwise notified in writing by the competent official, a financial
institution shall retain information as follows:
(1) Relating to customer identification under Section 20 for a period of five years
from the date that the account was closed or of the termination of relationship
with the customer.
(2) Relating to a financial transaction or a record of facts under Section 21 for a
period of five years from the date the transaction or the recording of the facts
occurred.
The contents of (1) above shall be applied to professions under Section 16
Section 22/19 Financial institutions and professions under Section 16 (1) and (9)
shall keep due diligence records under Section 20/1 for five years from the date the account was
closed or relationship had been terminated, unless where there is a necessary and reasonable
matter, the Secretary-General shall have the power to notify in writing to extend the period in
respect of a specific customer for the benefit of executing this Act and shall report such act to the
Board.
Section 23 The provisions of this Chapter shall not apply to the Bank of Thailand
under the law on Bank of Thailand.
2. Preventive Measure by using Measures of Safety which provide in Thai Penal
code10 Section 50 “Prohibition to carry on a certain kinds of occupation”
Section 50 When the court renders the judgment imposing the punishment on any
person and if the Court is of the opinion that such person commits the offence by taking an
opportunity of carrying on his occupation or profession, or as a result of carrying on his
occupation or profession, and is of the opinion that such person may recommit such offence, if
such person continues carrying on his occupation or profession further, the court may order in the
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Section 22 amended in accordance with the Anti-Money Laundering Act (no.2) B.E. 2551 (2008)
Section 22/1 added in accordance with the anti-Money Laundering Act (no.3) B.E. 2552 (2009)
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Thai Penal Code A.D. 1956
9
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judgment prohibiting such person from carrying on his occupation or profession for a period of
not exceeding five years from the day of discharge of such person from the punishment.
3. Preventive Measures by increase more effective to the law enforcers in getting
evidences which are very difficulty to find for success in enforcing law. And it
is the fact that the more success in enforcing law the more deter to the person
who want to commit crime. These measures are
(1) Plea-Bargaining
(2) Reverse burden of proof
4. Preventive Measure by using “Fine Punishment” this measure is to stop the
motivation of the person who want to commit crime. This measure is to
enforce amount of fine punishment nearly the amount of money that the
offenders get from committing crime. The purpose of this measure is take all
benefit from committing crime from the offenders which is a kind of
preventive measures in cutting the motivation in benefit of crime
5. Preventive Measure by using “Notice to victims” the purpose of notice to
victims are to inform the society about the method of committing crime by
using offenders” expenses. It is a measure to protect crime in the future.
In United States this measure is call “Order of notice to victims” Referring to 18
U.S.C. 3555 The court, in imposing a sentence on the defendant who has been found guilty of an
offense involving fraud or other intentionally deceptive practices, may order in addition to the
sentences that it is imposed pursuant to the provisions of section 3551, that the defendant give
reasonable notice and explanation of the conviction, in such form as the court may approve to the
victims of the offense.
The notice may be ordered to be given by mail, by advertising in designated areas
or through designate media, or by other appropriate means. In determining whether to require the
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defendant to give such notice, the court shall consider the factors set forth in section 3553 (a) to
the extent that they are applicable and shall consider the cost involved in giving the notice as it
relates to the loss caused by the offense, and shall not require the defendant to bear the costs of
notice in excess of $20,000
6. Preventive Measure by using Corporate Probation 11 for Corporate Crime
because this kind of Crime causes a tremendous damage to the country and
also very difficult to the law enforcement agencies.
As the matter of fact, most of the owner of these Corporates are White CollarCriminal in Thailand (Politicians, Military and High class persons)
The aformention five Preventive Measures can be used to prevent crimes
especially Economic Crimes which are more effective than using Suppressive Measures only
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Viraphong Boonyobhas, Professor, Economic Crime, sixth edition p.52