Published: 27/04/2011 at 12:00 AM

http://www.bangkokpost.com/business/economics/233928/laundering-via-insurance-policies-watched

Buyers of insurance policies will be required to submit personal information on their sources of income in order to guard against money laundering.

The rules will apply to purchases of life insurance policies worth 2 million baht or more, and non-life policies worth 5 million or more, said Pol Col Seehanat Prayoonrat, secretary-general of the Anti-Money Laundering Office (Amlo).

Insurance brokers will be required to submit their customers' information for cross-checking by the two state agencies.

Pol Col Seehanat said the rule was developed by the Office of the Insurance Commission (OIC) in collaboration with Amlo, and was expected to take effect before the end of the current quarter.

He said Amlo currently had some cases before the courts seeking to seize money from drug dealers suspected of having laundered money through insurance.

He said financial institutions were also required to ask for personal information for new accounts, particularly the occupation of the account owner. Also, banks most report to Amlo any irregular movements in each account.

"The cash flow of that account will be used as an indicator of what the account owner is doing. If they work in a specific occupation but cash inflows and outflows do not reflect the reality, the office can pursue more inspections."