OECD Review of Thailand's Legal and Policy Framework for Fighting Foreign Bribery

OECD Review of Thailand's Legal and Policy Framework for Fighting Foreign Bribery

Overview

The OECD conducted a review of Thailand's legal and policy framework for combating foreign bribery as part of the second phase of the Thailand Country Programme. The review aimed to align Thailand with international standards and best practices established by the OECD Anti-Bribery Convention and the 2021 Recommendation of the Council for Further Combating Bribery of Foreign Public Officials in International Business Transactions (Anti-Bribery Recommendation).

Key Findings and Recommendations

1. Alignment with International Standards

   • Thailand requested support from the OECD to strengthen its anti-corruption framework.
   • The review focused on aligning Thailand’s legal and institutional framework with the foundational standards of the Anti-Bribery Convention and related instruments.

2. Foreign Bribery Offense

   • Elements: Thailand’s legal system includes specific elements of the foreign bribery offense, such as the offer, promise, or giving of a bribe to secure an improper advantage.
   • Complicity and Attempt: Thailand recognizes complicity and attempt to commit foreign bribery, but there are gaps in defining these offenses clearly.
   • Defenses: Thailand has some defenses available, such as honest belief in the legality of the act, but they need to be further clarified.

3. Liability of Legal Persons

   • Corporate Liability: Thailand’s corporate liability framework is in place but needs improvement.
   • Successor Liability: There are issues with successor liability, where new entities take over the liabilities of a dissolved company.
   • Defenses: Limited defenses are available, and the autonomous liability of legal persons needs to be better defined.

4. Sanctions for Foreign Bribery

   • Principal Penalties: Thailand has principal penalties for bribery of both domestic and foreign public officials.
   • Seizure and Confiscation: There are provisions for seizure and confiscation of proceeds from bribery.
   • Mutual Legal Assistance and Extradition: Thailand has frameworks for mutual legal assistance and extradition but faces practical challenges in implementation.

5. Enforcement Capacity

   • Investigations and Prosecutions: Thailand has made progress in investigating and prosecuting domestic and foreign corruption cases.
   • Track Record: Despite improvements, there are still challenges in effectively enforcing foreign bribery laws.

6. International Cooperation

   • Mutual Legal Assistance: Thailand has a framework for mutual legal assistance but faces practical challenges.
   • Extradition: Extradition laws and treaties are in place, but there are issues with their implementation.

7. Non-Tax Deductibility of Bribes

   • Tax Deductibility: Thailand allows tax deductions for bribes, which contradicts international standards.
   • Recommendation: Thailand should adopt measures to prevent the tax deduction of bribes.

8. Recommendations

   • Strengthening Legal Framework: Improve clarity and effectiveness of the foreign bribery offense.
   • Enhancing Corporate Liability: Strengthen successor liability and autonomous liability of legal persons.
   • Improving Sanctions: Increase the severity and effectiveness of sanctions.
   • Boosting Enforcement Capacity: Enhance investigative and prosecutorial capabilities.
   • Fostering International Cooperation: Improve mutual legal assistance and extradition mechanisms.

Acknowledgments

The OECD thanks the Government of Thailand, particularly the National Anti-Corruption Commission (NACC), for their support and contributions throughout the project.

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This summary highlights the key areas identified for improvement and the specific recommendations to enhance Thailand's legal and enforcement framework against foreign bribery.