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Published on November 13, 2007

Seehanat Prayoonrat, NCCC deputy secretary-general, said it was unusual that while commercial banks have reported over 100 suspicious transactions ahead of the election, the number of dubious transactions from brokerage houses is less than 2 per cent of that figure.

"We're concerned, and brokerage houses have been told that they could have breached the law by not paying sufficient attention to this," Seehanat said after a discussion with the Securities and Exchange Commission and representatives of the Association of Securities Companies.

"During the discussion, I showed them the information and ordered them to report suspicious back-dated transactions. From the information supplied by commercial banks, there are many cases that have convinced us to launch an investigation."

The NCCC last week ordered commercial banks and brokerage houses to report suspicious transactions in order to rein in malpractice that could have involved politicians who are raising funds for the upcoming election.

Seehanat said that the NCCC is handling several cases which could involve share manipulation, but some cases could not be developed. He noted that after the enforcement of the new NCCC law, more investigations would be launched as the list of actions deemed unlawful will be extended.

The official also said yesterday that brokerage houses and the SEC should closely monitor money trails as the election date draws near. If they find anything suspicious, they should report to the NCCC promptly or risk facing penalties. Failure to report such information under the Anti-Money Laundering Act could lead to a maximum fine of Bt300,000 for a company. Those who file wrong information face a maximum fine of Bt500,000. These companies are also subject to investigation by other agencies such as the Assets Examination Commission, the Department of Special Investigations and the police.

Seehanat said the NCCC is now clarifying mutual understanding on the anti-money-laundering law with all financial companies, so they know how to act in accordance with the law. A workshop is planned before the end of December for the institutions' staff.

The NCCC also plans to invite other financial institutions to discuss the anti-money-laundering law before the election takes place. Among the institutions likely to be invited are the Thai Bankers' Association, the Foreign Bankers' Association, the Association of Investment Management Companies and the Insurance Association.

Under the law, the Election Commission will notify any suspicious leads to the NCCC. Meanwhile, the NCCC will accept leads from other sources, which will be screened and processed accordingly.

 Siriporn Chanjindamanee

 The Nation