Thailand on Wednesday moved to tighten money laundering controls to counter suspected terrorists, gave the green light to financial institutions to monitor cash deposits by certain groups of people -- especially politicians -- with overseas bank accounts.

Deputy Prime Minister Pridiyathorn Devakula, who also serves as Minister of Finance, said after presiding over an Anti-Money Laundering Office (AMLO) meeting that the participants discussed whether AMLO had power to freeze money suspected of being transferred by terrorists.

He said financial institutions, including gold traders, are willing to cooperate in a probe on money transactions and their origins once the law is enforced.

Kitti Limchaikit, secretary general of the Office of the Narcotics Control Board (ONCB), said the meeting also discussed the definition of terrorism because the Thai terrorism law now runs in parallel to money laundering law.

Money used for terrorism could be "clean" as it arrives after being donated by private organizations and foundations, while money laundering is not, Kitti explained.

Financial institutions will also be required to closely monitor the financial circumstances of certain groups of people -- politicians, high ranking government officials, antiques and gold traders, for example, Kitti was quoted by the Thai News Agency as saying.

Gold traders have agreed to cooperate in the scheme if dealings are worth more than 100 million baht (2.86 million U.S. dollars) annually, in line with standards set by the United Nations, he said.

Concerned government agencies will specify later which professions needed to be monitored closely regarding how their money is obtained when deposited in financial institutions.

Source: Xinhua