1 Effective action against corruption Sub-theme 4: Law Enforcement: TOPIC: Case Study –Specialised Units and Courts Global Forum 5 2-5 April 2007 Johannesburg,

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Effective action against corruption

Sub-theme 4: Law Enforcement:

TOPIC: Case Study –Specialised Units and Courts Global Forum 52-5 April 2007

Johannesburg, Republic of South Africa

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Pol.Maj.Gen.Peeraphan PrempootiAdvisor to the Prime Minister

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- CORRUPTION An act done with an intent to give some advanta ge inconsistent with official duty and the rights of other. It includ es bribery, but is more comprehensive; because an act may be c

orruptly done, though the advantage to be derived from it be no t offered by another.

Sometimes corruption is understood as something against law; such as, a contract by which the borrower agreed to pay the len

der usurious interest. It is said, in such case, that it was corruptl y agreed, etc.

Corruption has become an issue of major political and economic significance in recent years and the necessity to take measures against it has become evident. The OECD has assumed a leading role in preventing international bribery and corruption.

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Founding: AD.1238 (never colonized)

Corruption by Country Ranking: 61Population: 64,631,595GDP per capita: $ 2,547.14

Capital: Bangkok (pop. 5,882,000+)

Religions: Buddhist: 94.7%

Muslims: 4.7%

Christian: 0.7%

Others: 0.9%

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Corruption

Means the performance or omission of a particular act in office or in the course of official duty, or the performance or omission of a particular act under the circumstance likely to cause other persons to believe that the person so performing or omitting holds such office or has such duty although the office or duty is not held or assumed by such person, or the exercise of power in office or in the course official duty with a view to acquiring undue benefits for his or her own or for other persons

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Political Rules on Anti-corruption in Thailand

1. Political Will: Gov’t declares clear policy against all type of

corruption

2. Specific Legislation/s: The Issuance of Special Legislations

3. Specific Authority: The establishment of Special Law Enforcement Agencies: National Counter Corruption Commission

4. Specific Measure/s: The Announcement of Gov’t Special Measures: “The WAR against Corruption”

5. The signing of UN Convention against Corruption

on 9 Dec. 03

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Law Enforcement Agencies in Thailandwith jurisdiction on Anti-Corruption

1. Royal Thai Police Department (RTP) :

- Thai Criminal Code B.E.2499 (1956)

2. The Office of the National Counter Corruption Commission (NCCC)

- Organic Act on Counter Corruption, B.E.2542 (1999)

3. Anti-Money Laundering Office (AMLO)

- Anti-Money Laundering Act B.E.2542 (1999)

4. Department of Special Investigation (DSI)

- The Special Case Investigation Act B.E.2547 (2004)

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Special authorities of NCCCunder the virtue of Organic Act on Counter Corruption, B.E.2542 (1999)

To inspect assets and liabilities of State official/s and politician/s;

Inquire and submit a request to impeach high ranking state official/s or politician/s from position.

Criminal Prosecution against politician/s or state official/s

Inquire & probe on state officials of his/her wealthy beyond income/ malfeasance in office or corruption practice.

To prescribe rules and procedures: To receive the report of submission of the assets and liabilities of State officials and PM and Minister;

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Special Powers of NCCC (continued)

To refer matters to the agency concerned to make a request to the Court to revoke a right or document of which the State official has granted to a particular person in contravention of the law or official regulations to the detriment of the Government service;

To submit a criminal indictment case to the Supreme court via Attorney General Office for criminal assets forfeiture, including the forfeiture of substituted corresponding value of assets.

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• L

Narcotics

Trafficking in Women & Children

AMLA Predicate Offence

Embezzlement/Cheating & Fraudin Financial Institutions

Customs Evasion

Cheating & Fraudto the Public

Malfeasance in Office

Extortion & Blackmail

Terrorism

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Exploitation of Exploitation of natural resourcesnatural resources

8 Additional 8 Additional predicate offensespredicate offenses

Unfair Practice inUnfair Practice inPublic ProcurementPublic Procurement

Stock ManipulationStock Manipulation

Arms smugglingArms smuggling

Illegal Illegal gamblinggambling

Money Exchange Money Exchange Control ActControl Act

Labour fraudLabour fraud

Offenses relating to Offenses relating to the Excise Lawthe Excise Law

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Additional 8 predicated Offences(The amendment is in progress)

• Exploitation of Natural Resources• Foreign Exchange Control Act• Stock Manipulation• Illegal Gambling• Arms Smuggling• Unfair Practice in Public Procurement• Labour Fraud• Offences Related to the Excise Law Draft is being submitted to Cabinet to be forwarded to

Parliament

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Special Authority of AMLOUnder the virtue of AMLA 1999 Against Corruption practice

Financial Transaction Report: To receive financial reports from Financial Institutions nationwide;

Analysis STR: To access to related information of suspicious transaction reports;

Right to access telecommunication system: Request a warrant from the civil court to access & obtain information from telecommunication system by using special equipments

Extraterritoriality : Jurisdiction exists over money laundering offense committed outside Thailand.

Civil Forfeiture Measure: Shift burden of proof, Civil court shall forfeit the asset involved in an offense under a probable cause to believe, Civil forfeiture is a property in rem and the court judgment does not lean on criminal case.

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Special Authority of DSIUnder the virtue of The Special Case Investigation Act. 2004

Criminal offenses provided in 22 Acts:1. Law on Loan Amounting to Public Cheating and

Fraud;

2. Competition Act; (Anti-Dumping)

3. Commercial Banking Act;

4. Law on the Finance Business, Securities Business

and Credit Foncier Business;

5. Chain Loan Control Act;

6. Foreign Exchange Control Act;

7. Law on Government Procurement Fraud;

8. Act for the Protection of Layout-designs of Integrated

Circuits

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9. Consumer Protection Act;10. Trademark Act;11. Currency Act;12. Tax and Duty Compensation of Exported Goods

Produced in the Kingdom Act;13. Interest on Loan by the Financial Institution Act;14. Bank of Thailand Act;15. Public Company Act;16. Anti-Money Laundering Act;17. The Industrial Product Standard Act;18. Copyright Act;19. Board of Investment Commission Act;

Special Authority of DSI (continued)Under the virtue of The Special Case Investigation Act. 2004

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20. Enhancement and Conversation of National Environment Quality Act;

21. Patent Act;22. Securities and Exchange Commission Act.******************************************** Access to telecommunication System: To request a

warrant from the criminal court to obtain the telecommunication information by using special equipments;

To conduct the undercover missions; control delivery, penetrate into organized crime group

Special Authority of DSI (continued)Under the virtue of The Special Case Investigation Act. 2004

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Joint Operation of law enforcement agencies

on Anti-corruption

in Thailand

Performance of AMLO on 8 predicate offenses (2000 – 2006)

Total cases = 615 cases with total of assets 4,056,502,481.58 Baht

In Court = 552 cases with total of assets 3,473,722,225.88 Baht

(Exchange rate 35.00 Baht = 1 US Dollar)

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Malfeasance in Office : State official issued counterfeited Land Title Deeds (Sor Por Kor 4-01) to assist businessman to encroach & trespass on public land in Phuket Province

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Mountainous land which is the Public land had been encroached by businessman using counterfeited Land Title deeds (Sor Por Kor 4-01)

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AMLO and police seized assets involved in corruption case from a former Director General resident in Bangkok in 2005

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AMLO and local police seized assets in corruption case from a former City Councilor resident in Naratiwat Province in Dec.2005

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Malfeasance in Office : A former Abbot of a temple embezzled donated money 8-9 million Baht for personal gain. (Wat Koo case)

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AMLO and Police seized the embezzled monies from bank deposit box (Wat Koo case) then returned to the right owner

24Embezzled monies hidden in Commercial Bank Deposit Box

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Cross Border Statue• Palermo Convention

• Article 18 paragraph 13 requiring all State-Parties to establish an official central authority to receive formal requests for legal assistance by going through normal protocol as well as to execute or transmit the request to the competent authority for further action.

• Mutual Legal Assistance in Criminal Matters

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International Cooperation

• AMLO is a member of Int’l Organizations: 1. APG in April 2001 and 2. EGMONT Group in Oct. 2001 with 101countries

• AMLO also is in cooperation with other int’l or regional organizations e.g. ASEM, IMF, World Bank, etc. in the matter related to ML prevention and suppression.

• AMLO has signed the MOU with 28 countries and is now in the negotiation process with many countries.

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Mutual Legal Assistance in Criminal Matters

1) Investigation, inquiry, and testimony.2) Compiling and providing documents or information3) Delivery of documentary evidence4) Search and seizure5) Transferring or accepting a person in custody

for taking testimony 6) Tracing of subjects or individuals7) Initiating criminal proceeding upon request8) Confiscation or seizure of assets

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Treaties of Mutual LegalAssistance in Criminal Matters

• Thailand has signed the treaty of Mutual Legal Assistance in Criminal Matters with 7 countries :

1. Canada (1994) 2. France (2000)3. Korea (2005) 4. PR China (2005)5. Norway (2000) 6. UK. (1997)7. USA. (1993)

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Extradition Treaties

• Thailand has signed the Extradition treaties with 10 countries:

1. UK.(1911) 2.Belgium (1936)3. Indonesia (1980) 4. Philippines (1984)5. USA. (1991) 6. China (1999)7. Korea (2001) 8. Laos PDR (2001)9. Bangladesh (2001) 10. Cambodia (2001)

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International Cooperation in Combating Money Laundering

AMLO offers Int’l Cooperation through:

• Asia Pacific Group on Money Laundering (APG): 23 Jurisdiction members (joined April 2001)

• Egmont Group: 101 Jurisdiction members (joined Oct.2001)• Memorandum of Understanding concerning cooperation in the

exchange of financial intelligence related to money laundering (MoU): 28 FIUs:

Andorra Australia Belgium BrazilBulgaria Cayman Islands Estonia FinlandGeorgia Indonesia Ireland Japan

Korea Lebanon Malaysia MauritiusMonaco Netherlands Myanmar NigeriaPhilippines Poland Portugal RomaniaSt.Kitts & Nevis St.Vincent & Grenadines UkraineUK.

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Recommendations

For effective cross-border cooperation:

• Countries take steps to sign the treaties of Mutual Legal Assistance in Criminal Matters

• Countries are encouraged to sign the MoU concerning cooperation in the exchange of financial intelligence with AMLO

• Set up point of contact (POC)• Formal channel• Informal channel

• Hotline communication• Telephone/Mobile/Facsimile• Email, etc.

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Contact Address:

The Secretariat of the Prime Minister

Government House (HQ Building 2)

Dusit, Bangkok 10300, Thailand

Tel: +662-282-6939, Fax: +662-282-2215

For details, please visit : www.thaigov.go.th