FBIS4-67292
"jptdd022__l94057"
JPRS-TDD-94-022-L
JPRS
Narcotics
19 May 1994
EAST ASIA
THAILAND
Editorial Urges Government Action Against Money Laundering
Editorial Urges Government Action Against Money Laundering
BK1905052594 Bangkok BANGKOK POST in English 19 May 94 p 4
BK1905052594
Bangkok BANGKOK POST
English
BFN
[Editorial: "Time to clean up the dirty laundry"]
[Text] Last week in Taiwan, police broke up a heroin sales
operation. The drugs were made in Burma, and sold in Taiwan by
Singaporeans. The managers of the heroin ring were Hong Kong
triad members who live in Thailand. Drugs entered Taiwan aboard
ships of various nationality, sent mixed among other cargo by
Bangkok transport agencies. Operations were masterminded across
international satellite telephone connections, and profits were
banked somewhere, although police are not yet sure where. This
was, authorities point out, only a "small" smuggling operation
responsible for dumping an estimated 50 kilograms of heroin per
month on hapless addicts in Taiwan.
It is no wonder, then, that leaders of the international
Financial Action Task Force (FATF) were in town last week
pushing for new laws to combat drug smuggling. National police
forces, up against an organized foe which is both sophisticated
and ruthless, are losing the battle against addictive drugs.
The international scope of the narcotics business is obvious.
It is equally plain that drug traffickers only can be combated
through international cooperation. Thailand must consider
accepting the call of the world community to enact new, tough
laws against money laundering.
FATF is a five-year-old group with a growing membership,
funded by the G-7, of the world's second richest nations. It is
mainly a lobbying group, formed to convince countries and
bankers alike that it is in their own interest to monitor huge
flows of cash. By watching where such money goes, FATF and its
backers argue, big time drug dealers can be identified,
investigated and ultimately put out of business. It is a
compelling argument to beleaguered anti-narcotics agents. FATF
President John Gieve told our officials it also should be
attractive to the very people involved--our bankers. "A country
or a center which wishes to attract the top names will find it
easier to do so if they have in place anti-money laundering
legislation," Mr Gieve said.
Some read this statement as a threat. But it is, instead, a
promise. Cash transactions with banks are becoming ever more
tightly controlled throughout the world. Even where banking is
traditionally secretive and protective of the customer, such as
in Switzerland, large transfers now are routinely reported to
the police if the banks have any suspicion about their origin.
Banks and nations which cooperate in anti-laundering efforts
get more international business when they enter the financial
centers.
Efforts to combat drugs kingpins have more and more targeted
their fortunes. Sales of narcotics are performed with cash for a
variety of reasons, just as most legitimate commerce is done
more and more with paper. Warlords have assembled armies which
outgun most police forces, but the bosses of the drug gangs must
convert their profits. Money laundering is aimed at converting
"dirty money" from drugs into "legitimate money," which then can
be used for any purpose--even for buying entire governments.
Anti-laundering laws are the legal version of the famous
Watergate maxim on how to catch villains: "Follow the money." A
huge cash deposit may be attractive to a banker. But unless he
knows the businessman making the deposit, money-laundering laws
require him to report the transaction to authorities. This
opens up a new line of inquiry to authorities. If written
carefully and enforced without favor, such laws will not affect
honest citizens, and will enhance the reputation of banks which
participate.
Clearly, no inroads will be made against major drug
trafficking without international cooperation and effort.
Already, neighbors such as Australia, Japan Hong Kong and
Singapore have passed tough anti-laundering laws, without harm
to the business of their banks nor the privacy of their people.
Unquestionably, the Government must consider such legislation
carefully, and seek advice both from other countries and our own
judicial experts before acting. But action on money-laundering
must be taken soon.
Because Thailand is a front-line drugs state, the Government
must take the responsibility of acting. Drug use already harms
our country badly in many areas, from the spread of AIDS through
massive corruption and countless petty crimes by desperate
addicts. Because it is close to the production centers in Burma
and Laos, Thailand also attracts major traffickers. Our
country, and our banks, are healthy enough to reject drugs
money. The Thai Government should take action to make the
country increasingly unattractive for drug traffickers. A
careful, but tough, anti-laundering law would mark a major step
in such an effort.