Over B345bn smuggled out of the country
The Anti-Money Laundering Office (Amlo) has found more than 345 billion baht was smuggled out of Thailand through phoy kuan, or underground money transfers, in the past five years.
- Published: 27/10/2012 at 12:00 AM
- Writer: King-oua Laohong
Amlo secretary-general Seehanart Prayoonrat said yesterday that its investigation found 14,470 illegal money transfers between Thailand and other countries from 2008 to 2012 in which 193,327 million baht was transferred into Thailand and 345,437 million baht went out of Thailand to other countries.
He said the amount of the outgoing money nearly doubled that of the incoming money.
He said phoy kuan networks receive orders for money transfers and pass them on to their clearing agents in destination countries by phone or via the internet.
The clearing agents disburse money to individuals authorised by people who ordered the money transfer. The clearing agents charge a fee for their service.
According to Mr Seehanart, the money which came in to Thailand originated mostly from the Netherlands, Turkey, the United Arab Emirates, India, China, Taiwan, Japan and Hong Kong.
The lion's share of the outgoing money was transferred between Thailand and Hong Kong, which does not limit the amount of imported money, he said.
The illegal money transfers dodge control by government agencies including the Amlo and the Bank of Thailand as well as reputable financial institutions, providing a channel for sending dirty money abroad.
Pol Col Seehanart admitted that it was difficult to check illegal money transfers and money laundered by corrupt politicians.
"The malpractice has been around for a long time... The status and identity of those who do the transactions are concealed. Transfers can be ordered by phone and online," the Amlo secretary-general said. He said there were about 10 phoy kuan gangs in Thailand and they are connected.
They also serve businessmen who are not in money laundering rackets but are put off by the onerous regulations governing financial transactions abroad.
Share your thoughts
- Discussion 1 : 28/10/2012 at 08:47 AM
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This is the oldest informal banking that has been in existence in Asia. It's older than the present banking system so nothing new. Infractions it is very efficient . For example if a Burmese worker wants to send home some money, let say 5000 baht. So he goes up to this guy, he charges 300 baht fees, calls his counterpart in Burma that the payment has been done and they should pay the family immediately. The family meets The agent and gets paid. What if this guy wanted to send home thru proper channel Take a guess what formalities you have to go thru and how many days it will take to reach that remote part of Burma. Now make a choice.
- Discussion 2 : 27/10/2012 at 04:51 PM
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Ian, discussion 12, we use Moneybookers and PayPal on a daily basis (not Xoom, Western Union, the latter being even more expensive than PP and MB) to pay our providers, NOT because PP and MB are cheap (their fees are very high, at least for corporate clients), but because their systems are a million times more efficient and faster. To us, Thai banks are no option for amounts below approx. 100k baht, because of their medieval (or should I say mid-evil?) handling.
- Discussion 3 : 27/10/2012 at 02:30 PM
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Would be interesting to see how much per year during that time frame (especially during the times leading up to elections). Would also be interesting to see earlier in time, as I am sure this is not a new activity.
But with almost double going out vs the inbound, it can't all be money laundering, as I don't think you double your money at the laundry. I would say there is an awful lot of profit and tea money being sent abroad, hiding it from the authorities.
Next question is what will Yingluck do about it, since the PTP did campaign with promise to eliminate corruption.
- Discussion 4 : 27/10/2012 at 01:51 PM
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dickemerey, discussion 17, I doubt your claim that "no foreigner investmentsb will be coming here in the near future" because of the existence of corruption, money laundering and illegal transactions. These issues are not new (note that this article reports about the period 2008-2012) and direct foreign investments in Thailand have been on the rise over the past years. In fact, corruption, money laundering and illegal transactions not only impede but also facilitate foreign investors.
- Discussion 5 : 27/10/2012 at 01:02 PM
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when the international the FAFT has black listed thailand for laudering and non transperency,it creates underground banking as written in this story a very sad affair ,no foreigner investmentsb will be coming here in the near future,a prime example is this 3g auction ,corruption and graft is widespread
- Discussion 6 : 27/10/2012 at 12:23 PM
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Note that the average size of those 14,470 transfer was more than 37 million baht.
When we need to pay our business clients abroad from a Thai bank account, the bank treats us with humiliating suspicion and takes incredibly much time. But then, those amounts are all below 100,000 baht.
- Discussion 7 : 27/10/2012 at 12:05 PM
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ref 12
You are wrong, western union even charge more for it than a bank. This "underground" system is a normal one in most south Asian and SEA countries there is nothing wrong with it, it's peoples money and what they do with THEIR money is their business.
- Discussion 8 : 27/10/2012 at 11:30 AM
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"Pol Col Seehanart admitted that it was difficult to check illegal money transfers and money laundered by corrupt politicians". At least he admits there are corrupt politicians - now go and catch them....
- Discussion 9 : 27/10/2012 at 11:27 AM
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"..(Amlo) has found more than 345 billion baht was smuggled out of Thailand through phoy kuan, or underground money transfers, in the past five years"... would be nice if the article instead had said: "AMLO were able to stop 345 billion baht in the past five years which were tried to be smuggled out of Thailand...". Question: How many people have AMLO been able to put behind bars
- Discussion 10 : 27/10/2012 at 11:01 AM
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Moneybookers, Paypal, Xoom, Western Union, and many smaller organisations, all thrive because people object to the extortionate handling fees that banks charge for international money transfers.
- Discussion 11 : 27/10/2012 at 10:28 AM
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And nothing will be done.Again just a smoke screen. If you consider the proof we have to submit to obtain our visas this is shocking news.
And what will be done
What will be done,Nothing.If it was a private company you would ask for an independent audit but not much chance of that.
- Discussion 12 : 27/10/2012 at 10:09 AM
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As long as people get 15,000 for my rice and as long as small kickbacks are still there for the minnows who will care. Indifference and a lack of will to change by the masses are the problem
- Discussion 13 : 27/10/2012 at 09:22 AM
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Robingrant: one word for you to look up - 'sarcasm'
- Discussion 14 : 27/10/2012 at 08:59 AM
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commonman(D5):
Shocking news? Not to me it isn't! Back in the 1970's, when transferring money out of the country was more difficult than now, several of my Thai-Chinese acquaintances would move money abroad using this very same network.
It's an unofficial banking system that has probably been in existence in Asia and elsewhere for centuries! I doubt if the present Government, or any other Government, will be able to eradicate it.
- Discussion 15 : 27/10/2012 at 07:58 AM
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So now that you have found out about this, DO SOMETHING about it.
The PM is on about stopping corruption and here is a good starting point.
Arrest all the money transfer people and give them the choice of naming names or jail for life with no amnesty, no pardons just until they die in prison.
- Discussion 16 : 27/10/2012 at 07:33 AM
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Cannot trace the illegal transfer of 345 billion baht? I sgggest replace this person with someone that can handle the job. With this huge amount of money, finding the culprits should be quite easy. That is if they really want to find the culprits and not whitewash the crime
- Discussion 17 : 27/10/2012 at 07:19 AM
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Boy, now this is really shocking news! Soon, I suspect, research will reveal that wealthy Thais buy most of their education outside the country, also. Saves having to fix the Thai education "system".
- Discussion 18 : 27/10/2012 at 06:57 AM
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This cannot be, corruption when the Dems was in power? Must be an incorrect report? And to think that for 3 years while the Dems was in power we never heard about this. I wonder why?
- Discussion 19 : 27/10/2012 at 06:33 AM
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This is not underground banking - it is money laundering
- Discussion 20 : 27/10/2012 at 06:04 AM
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The headline and first paragraph quote 345 BILLION and then in the 2nd paragraph you quote 345 MILLION?? So which one is it?
- Discussion 21 : 27/10/2012 at 04:03 AM
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Business as usual for Thailand,what a shame.
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