Thailand was yesterday identified by an intergovernmental organisation as uncooperative in the global efforts to combat money-laundering and terrorism financing.
The move came only days after bomb blasts in Bangkok and discovery of explosive devices linked to terrorism.
The Paris-based Financial Action Task Force (FATF), in its statement on Thursday (yesterday Bangkok time), said Thailand was one of 15 countries that have begun taking steps to combat terrorist financing and money-laundering but have yet to make sufficient progress in addressing the deficiencies in their regulations.
Deputy Premier and Finance Minister Kittiratt Na-Ranong yesterday expressed concern that the move could adversely affect Thailand’s image and its economy.
He said the government would ask the Anti-Money Laundering Office to explain the situation.
“As far as I know, Thailand has been requested by the FATF to issue an anti-money-laundering law that complies with international standards but we have failed to do so, which led to the country being blacklisted,” Kittiratt said.
Songtham Pinto, director of the Bank of Thailand’s macro-economy division, said he expected short-term negative impact on tourism as a result of the FATF move and the earlier bomb scare in Bangkok, which was linked to international terrorism.
Siam Commercial Bank president Kannika Chalit-aphon urged the government to expedite the legislation.
She expected the impact on investor confidence to be short-term.
“There could be some worries and impacts on investments in certain industries. It is not a big problem,” she said.
Tevin Vongvanich, chief financial officer of PTT, said the company was evaluating the expected impact on the company’s financial transactions after Thailand was listed among watch-list countries that are not active in enforcing legislation to combat money-laundering and terrorism financing.
In general, the transactions may take a longer time for financial scrutiny.
However, PTT is confident that the downgrade will not affect its financial-transaction costs.
“At PTT, we believe that our existing customers understand this matter, and this will not affect the financial transactions between us and existing clients. But we may have to explain more to new clients,” he said.
Paiboon Nalintharangkul, chairman of the Federation of Thai Capital Market Organisations (FeTCO), said the government would have to pay attention to this and proceed with an amendment to its money-laundering law.
Being on such a blacklist could affect the competitiveness of the private sector, he said, while investing overseas may require more complicated procedures.
Foreign investors may not be concerned about this and foreign capital will continue to flow in, seeking higher returns as the country’s economic fundamentals are sound, he explained.
On the contrary, there may be a problem for capital outflow, he said.
For example, wealth management and private funds or funds with overseas investment policies may find difficulties investing overseas due to likely more complicated procedures for checking sources of investment.
Opposition Democrat politician Korbsak Sabhavasu, formerly a deputy prime minister, said this latest development was not good for Thailand’s reputation, as most of the countries identified by the FATF as uncooperative had a negative image regarding money-laundering and terrorism financing.
The Ministry of Foreign Affairs yesterday cancelled its news conference on the matter.
In its statement, the FATF said: “Despite Thailand’s high-level political commitment to address its strategic deficiencies, Thailand has not made sufficient progress in implementing its action plan, and certain strategic deficiencies remain.”
It recommended that Thailand should adequately criminalise terrorist financing, establish and implement adequate procedures to identify and freeze terrorist assets, and further strengthen supervision of money-laundering and terrorism financing.
In addition to Thailand, the other countries on the latest FATF list of non-cooperative countries are Bolivia, Burma, Cuba, Ethiopia, Ghana, Indonesia, Kenya, Nigeria, Pakistan, Sao Tome and Principe, Sri Lanka, Syria, Tanzania, and Turkey.
-The Nation/Asia News Network
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2012年2月6日星期一
Caixin Online: The basics of Chinese inbound investment deals
By Andrew Ross
BEIJING (
Caixin Online
) — An accelerating number of Chinese companies are engaging in acquisitions and joint ventures in the United States and while it’s generally understood that a large number of other Chinese companies are also considering doing so, many still hesitate.
The first point to note is that the rate of deals is increasing, and is doing so dramatically. A second point is that as a percentage of the total number of deals, small- to medium-size deals make up the majority, although there are a few larger ones, and the buyers are generally not SOEs (state-owned enterprises). Third, the industries of the acquired companies cover a broad range, from technology, apparel, consulting services, auto parts, hotels and many more.
/conga/story/misc/caixin.html
61611In 2011, several Chinese companies announced their intentions to enter into deals in the U.S., including Shanghai Pharmaceuticals
, with its publicly stated reasons being to seek new drugs to expand its product line and noting declining overseas prices and a strong Yuan, Bright Food Group, China National Materials Co. (Sinoma)
and Fosun Group, which stated it is looking at consumer brands. Many Chinese companies are going global in the U.S., more and more will be doing so, and for those Chinese companies for which this makes sense and which proceed to do so, they will be in very good company.
/quotes/zigman/1859134 CN:601607
+0.51%
/quotes/zigman/40694 HK:1893
+1.72%
So what are some of the strategies, procedures and lessons on pitfalls that can be garnered from recent deals?
Perhaps one of the most important points regarding engaging in transactions in the United States is to recall the reaction of many Chinese businesses when foreign companies came to China and sought to dictate that deals in China be done in the same manner as in those companies’ respective homelands. This generated ill feelings and often did and can easily result in failure in a deal. The same is true in the United States. Companies from many different countries make acquisitions in the U.S. all the time, and one of the accepted norms is that the deal will be done in “U.S. style.”
While not successful on occasion, the advisor for the U.S. company looking to be sold (especially a “hot” company) may seek to create an auction for the company, thus seeking to maximize the price and otherwise obtain the most favorable terms. Even if they do not succeed in doing this, they will generally seek to have the process move as rapidly as possible. Prospective buyers who are unwilling to follow an auction process when established or move too slowly are simply left behind. An important aspect in dealing with this is to be prepared. This means having done industry and market analysis in advance so as to be able to readily determine one’s interest and willingness to devote the necessary resources to explore the deal, and have ready or be able to quickly assemble a team of qualified Chinese and U.S. advisors.
Many U.S. businessmen object to the alleged slow deal pace of foreign businessmen (and not just Chinese), thus often giving U.S. buyers an advantage. Timing delays are, of course, a tactic to be considered; however they should only be used as deemed appropriate, such as to express reservations or concerns so as to try and enhance one’s bargaining position. However, a buyer should not allow its perceived slowness to cost it a deal it otherwise wants.
While most people properly say “a deal is not done until it is done,” in many U.S. negotiations the same often is not true of individual issues. Once an issue is resolved, it is generally not renegotiated absent special circumstances. A party which acts contrary to this undercuts its counter-party’s trust in it.
There is great significance in the U.S. placed on the transaction contract, as each party seeks to maximize its benefits and protections. As a general rule, legal counsel for a U.S. party, will seek as much protection for its client and clarity in the terms of an agreement as possible. This can be especially important for a buyer or investor. This often means lengthy detailed contracts, and also emphasizes the need for the parties to make decisions relatively quickly with respect to the many points involved. In fact, one view is that many U.S. business persons and their lawyers will only encourage ambiguity in an agreement if they think that addressing the ambiguity in the negotiations would result in it being resolved contrary to their interests or if they think they will have greater negotiating leverage on the point once the agreement is signed or the deal is consummated.
By having a contract be as detailed and precise as possible, the likelihood of a dispute is reduced. This is augmented by the fact that in the U.S. there is a very substantial body of court rulings and laws which help determine what a particular contractual phrase will mean in a particular context, thus creating even greater potential certainty. Finally, it should be recognized that other than private arbitrators and mediators and the courts — all of which are objective but the last of which is slow — no governmental entity or person such as a governmental bureaucrat plays a meaningful role in resolving contractual disputes.
While concerns abound over the possible legal burdens that Chinese companies face in the U.S., there are many reasons for Chinese companies to go global, and in particular to do so in the United States.
Read this commentary on Caixin Online.
Andrew Ross is partner and chair of the mergers and acquisitions practice group at Loeb & Loeb LLP. This article is an abridged version of a paper titled, “Acquisitions by Chinese companies in the United States: The case for moving forward now.”
http://tourism9.cm/ http://vkins.com/
BEIJING (
Caixin Online
) — An accelerating number of Chinese companies are engaging in acquisitions and joint ventures in the United States and while it’s generally understood that a large number of other Chinese companies are also considering doing so, many still hesitate.
The first point to note is that the rate of deals is increasing, and is doing so dramatically. A second point is that as a percentage of the total number of deals, small- to medium-size deals make up the majority, although there are a few larger ones, and the buyers are generally not SOEs (state-owned enterprises). Third, the industries of the acquired companies cover a broad range, from technology, apparel, consulting services, auto parts, hotels and many more.
About Caixin
Caixin is a Beijing-based media group dedicated to providing high-quality
and authoritative financial and business news and information through
periodicals, online and TV/video programs.
• Get the Caixin
e-newsletter
Caixin is a Beijing-based media group dedicated to providing high-quality
and authoritative financial and business news and information through
periodicals, online and TV/video programs.
• Get the Caixin
e-newsletter
61611
, with its publicly stated reasons being to seek new drugs to expand its product line and noting declining overseas prices and a strong Yuan, Bright Food Group, China National Materials Co. (Sinoma)
and Fosun Group, which stated it is looking at consumer brands. Many Chinese companies are going global in the U.S., more and more will be doing so, and for those Chinese companies for which this makes sense and which proceed to do so, they will be in very good company.
/quotes/zigman/1859134 CN:601607
+0.51%
/quotes/zigman/40694 HK:1893
+1.72%
So what are some of the strategies, procedures and lessons on pitfalls that can be garnered from recent deals?
Perhaps one of the most important points regarding engaging in transactions in the United States is to recall the reaction of many Chinese businesses when foreign companies came to China and sought to dictate that deals in China be done in the same manner as in those companies’ respective homelands. This generated ill feelings and often did and can easily result in failure in a deal. The same is true in the United States. Companies from many different countries make acquisitions in the U.S. all the time, and one of the accepted norms is that the deal will be done in “U.S. style.”
While not successful on occasion, the advisor for the U.S. company looking to be sold (especially a “hot” company) may seek to create an auction for the company, thus seeking to maximize the price and otherwise obtain the most favorable terms. Even if they do not succeed in doing this, they will generally seek to have the process move as rapidly as possible. Prospective buyers who are unwilling to follow an auction process when established or move too slowly are simply left behind. An important aspect in dealing with this is to be prepared. This means having done industry and market analysis in advance so as to be able to readily determine one’s interest and willingness to devote the necessary resources to explore the deal, and have ready or be able to quickly assemble a team of qualified Chinese and U.S. advisors.
Clinton calls U.N. veto on Syria a ‘travesty’
U.S. Secretary of State Clinton called the veto by Russia and China of the U.N. resolution on Syria a “travesty” as Syria’s President Bashar al-Assad attended mosque service. (Video: Reuters/Photo: Getty Images)While most people properly say “a deal is not done until it is done,” in many U.S. negotiations the same often is not true of individual issues. Once an issue is resolved, it is generally not renegotiated absent special circumstances. A party which acts contrary to this undercuts its counter-party’s trust in it.
There is great significance in the U.S. placed on the transaction contract, as each party seeks to maximize its benefits and protections. As a general rule, legal counsel for a U.S. party, will seek as much protection for its client and clarity in the terms of an agreement as possible. This can be especially important for a buyer or investor. This often means lengthy detailed contracts, and also emphasizes the need for the parties to make decisions relatively quickly with respect to the many points involved. In fact, one view is that many U.S. business persons and their lawyers will only encourage ambiguity in an agreement if they think that addressing the ambiguity in the negotiations would result in it being resolved contrary to their interests or if they think they will have greater negotiating leverage on the point once the agreement is signed or the deal is consummated.
By having a contract be as detailed and precise as possible, the likelihood of a dispute is reduced. This is augmented by the fact that in the U.S. there is a very substantial body of court rulings and laws which help determine what a particular contractual phrase will mean in a particular context, thus creating even greater potential certainty. Finally, it should be recognized that other than private arbitrators and mediators and the courts — all of which are objective but the last of which is slow — no governmental entity or person such as a governmental bureaucrat plays a meaningful role in resolving contractual disputes.
While concerns abound over the possible legal burdens that Chinese companies face in the U.S., there are many reasons for Chinese companies to go global, and in particular to do so in the United States.
Read this commentary on Caixin Online.
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Volume: 17.31M
Feb. 6, 2012 1:34p
Feb. 6, 2012 1:34p
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Volume: 7.48M
Feb. 6, 2012 1:33p
Feb. 6, 2012 1:33p
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2012年1月2日星期一
Investment in developing world to rise -World Bank
WASHINGTON (Reuters) – Investors are cautiously optimistic about their investment plans in developing countries over the next 12 months despite increased concerns about the euro zone debt crisis, a survey by the World Bank’s political risk insurance agency found on Thursday.
In a survey of 275 global investors by the Multilateral Investment Guarantee Agency (MIGA), more than half of corporate investors said they expect to increase investments in developing countries over the next 12 months.
Nearly three quarters of respondents said they planned to moderately or substantially increase investments in developing countries over the next three years.
Just 10 percent of respondents said they planned to decrease investments, and just 8 percent planned to cut back on investments over the medium term.
MIGA chief economist Ravi Vish told Reuters that even though the survey was conducted six months ago and may not capture the growing concern over the euro zone crisis, investors remain upbeat about developing countries’ prospects.
Vish said investors were concerned about spillover effects from the euro zone crisis and a possible liquidity freeze by banks, which would impact project financing.
European banks have been the largest investors in emerging market project finance, Vish added.
He said investors in developing economies were mainly drawn by oil, gas and mining sectors, with growing interest in banking and infrastructure development.
“We are seeing some caution over the next one year but long-term investment planning,” said Vish, pointing to growth rates of more than 6 percent in many developing economies.
“Notwithstanding everything that is happening, investors are still seeing the potential for growth in emerging markets over the long term,” he added.
The MIGA survey found that demand for political risk insurance had increased as perceptions of global risk have worsened.
The survey found that the principal worry of investors in developing countries was breach of contract by governments, regulatory changes and nationalization – a bigger concern than political violence or conflict.
MIGA said the potential for disputes between governments and foreign investors were increased by an economic shock and/or significant political shifts in a country.
Evidence also shows that investor disputes are more likely to be resolved by democratically elected governments than by non-democratic regimes.
‘ARAB SPRING’ AFTERMATH
MIGA said popular uprisings in the Middle East and North Africa have hurt foreign direct investment plans in the region. A significant number of corporate investors surveyed said have adopted a “wait-and-see” approach to investment in the region.
“Stability is critical for persuading investors to resume investment,” the report said.
Protests across the Middle East and North Africa this year toppled veteran rulers in Tunisia, Egypt and Libya, and forced Yemen’s president to sign away his powers. In Syria, the government is grappling with protests, and Bahrain is still dealing with the fallout from its crackdown on pro-democracy demonstrations in March.
The World Bank has forecast that foreign direct investment flows into the region will decline in 2011 and 2012, but expects growth to resume in 2013.
“With Europe under economic strain and uncertainties surrounding the political environment in Egypt, Libya and Tunisia, FDI into North Africa is likely to slump for longer and rebound more slowly than the rest of the region,” MIGA said.
http://tourism9.com/
In a survey of 275 global investors by the Multilateral Investment Guarantee Agency (MIGA), more than half of corporate investors said they expect to increase investments in developing countries over the next 12 months.
Nearly three quarters of respondents said they planned to moderately or substantially increase investments in developing countries over the next three years.
Just 10 percent of respondents said they planned to decrease investments, and just 8 percent planned to cut back on investments over the medium term.
MIGA chief economist Ravi Vish told Reuters that even though the survey was conducted six months ago and may not capture the growing concern over the euro zone crisis, investors remain upbeat about developing countries’ prospects.
Vish said investors were concerned about spillover effects from the euro zone crisis and a possible liquidity freeze by banks, which would impact project financing.
European banks have been the largest investors in emerging market project finance, Vish added.
He said investors in developing economies were mainly drawn by oil, gas and mining sectors, with growing interest in banking and infrastructure development.
“We are seeing some caution over the next one year but long-term investment planning,” said Vish, pointing to growth rates of more than 6 percent in many developing economies.
“Notwithstanding everything that is happening, investors are still seeing the potential for growth in emerging markets over the long term,” he added.
The MIGA survey found that demand for political risk insurance had increased as perceptions of global risk have worsened.
The survey found that the principal worry of investors in developing countries was breach of contract by governments, regulatory changes and nationalization – a bigger concern than political violence or conflict.
MIGA said the potential for disputes between governments and foreign investors were increased by an economic shock and/or significant political shifts in a country.
Evidence also shows that investor disputes are more likely to be resolved by democratically elected governments than by non-democratic regimes.
‘ARAB SPRING’ AFTERMATH
MIGA said popular uprisings in the Middle East and North Africa have hurt foreign direct investment plans in the region. A significant number of corporate investors surveyed said have adopted a “wait-and-see” approach to investment in the region.
“Stability is critical for persuading investors to resume investment,” the report said.
Protests across the Middle East and North Africa this year toppled veteran rulers in Tunisia, Egypt and Libya, and forced Yemen’s president to sign away his powers. In Syria, the government is grappling with protests, and Bahrain is still dealing with the fallout from its crackdown on pro-democracy demonstrations in March.
The World Bank has forecast that foreign direct investment flows into the region will decline in 2011 and 2012, but expects growth to resume in 2013.
“With Europe under economic strain and uncertainties surrounding the political environment in Egypt, Libya and Tunisia, FDI into North Africa is likely to slump for longer and rebound more slowly than the rest of the region,” MIGA said.
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