TERRORISM FINANCE: U.S. DOMESTIC DESIGNATION OF

C O N F I D E N T I A L BANGKOK 003673

C O R R E C T E D C O P Y - EDITED LAST PARAGRAPH

SIPDIS

EEB/ESC/TFS CHRIS BACKEMEYER

E.O. 12958: DECL: 12/17/2018
TAGS: KTFN KWBG KPAL EFIN PTER ETTC PREL PINR
SUBJECT: TERRORISM FINANCE: U.S. DOMESTIC DESIGNATION OF
UNION OF GOOD

REF: SECSTATE 127070

Classified By: Economic Counselor Robert D. Griffiths, reasons: 1.4 (b
and d)


1. (SBU) On December 4, Econoff passed reftel points
regarding the United States' designation of Saudi
Arabia-based Union of Good as a supporter of terrorism under
Executive Order 13224 to three offices within the RTG: the
Ministry of Foreign Affairs' (MFA) International Security
Unit, the National Coordination Center for Combating
Terrorism and Transnational Crime (NCC-CTTC),and the
Anti-Money
Laundering Organization (AMLO). During a December 8 phone
conversation in which Econoff made the same points, Counselor
for the MFA's International Security Unit, Witchu Vejjajiva,
and a Policy Planning Analyst in the AMLO's Foreign Affairs
Section, Sajachai Sangsayeo, confirmed receipt of the reftel
information in order to facilitate the freezing of related
assets should any be identified within Thailand.


2. (SBU) However, both Witchu and Sajachai confirmed what
post had learned November 25 in a conversation with the AMLO
regarding a different matter. The amended anti-money
laundering act (AMLA),which came into effect on March 2,
2008, required the dissolution of the existing anti-money
laundering board (chaired by the Prime Minister) and five
member transaction committee that it appoints. As such,
since the amended AMLA came into force, the AMLO has not been
able to to seize any assets from criminal activity, including
those of terrorist, were they to be found. The AMLO will not
be able to again do so until such time that a new board and
committee are formed.


3. (SBU) Witchu explained that the anti-money laundering
board, led by the Prime Minister and including Ministers of
Justice and Finance is responsible for selecting the members
of the transaction committee, the body authorized to seize
assets under the AMLA. According to Witchu, once a new Royal
Thai Government (RTG) is formed, it will need to appoint a
new anti-money laundering board, which will need the separate
approval of first the Parliament and then the Senate. Once
that is done, a new transaction committee can be put in place
and the AMLO can again seize assets should they be found.
Individuals normally remain as members of the transaction
committee for three years.


4. (C) Sajachai stated that Article 35 of the AMLA does
provide the Secretary General of AMLO the authority to seize
assets temporarily (for up to 90 days) as an emergency
measure (the decision to do so must be reviewed by the
transaction committee). However, the most recent Secretary
General of AMLO retired September 30, leaving Deputy
Secretary General Seehanat Prayoonrat ( a Police Colonel) as
acting Secretary General in his place. Due to uncertainty
about the authority of an official in an acting
capacity, and since there is no active transaction committee,
Seehanat has been reluctant to exercise this authority.
Nonetheless, Witchu and Sajachai both confirmed that the AMLO
retains the authority to investigate suspect assets for
potential seizure and that the Royal Thai Police (RTP) and
Department of Special Investigations (DSI) retain the ability
to seize assets under relevant sections of the penal code.


5. (C) Comment: According to the AMLO, approximately ninety
percent of money laundering cases are connected to narcotics
and no clear evidence exists that terrorists groups launder
money in Thailand. Depite the internal management problems
afflicting AMLO at present, we believe that should there be
credible evidence of the movement of terrorist funds, there
remains sufficient authority to take meaningful action.
Meanwhile, we will encourage the new government to move
quickly to restore a new money-laundering board.
End Comment.
JOHN