Thailand’s New Anti-Bribery Measures for Public Procurement: Broader Application, and Recognition of Global Standards

On 16 October 2024, the Anti-Corruption Cooperation Committee of Thailand published a notification in the Royal Gazette introducing new anti-bribery measures that apply to government procurements1 ("Notification"). The Notification replaces, and is more exacting than, the anti-bribery notification published in 2018. 

The Notification was issued pursuant to Section 19 of the Public Procurement and Supplies Administration Act, B.E. 2560 (2017), comes into effect on 13 April 2025, and will require many business operators to adopt anti-corruption measures when participating in public procurements.  

The primary objective of the Notification is to enhance transparency and align Thailand's procurement framework with global practices. Some key elements of these changes are discussed below. 

Expanded Definition of Corruption

The Notification expands the definition of “Corruption” beyond the traditional domestic scope, which focused on bribery of, or providing benefits to, government officials.

The new, expanded definition of “Corruption” includes “obstruction of fair competition” and “conflicts of interest between personal and public interests” involving business operators and public entities. 

・Obstruction of Fair Competition 

・Conflicts of Interest Between Personal Interests and Public Interests 

Loans as Bribes 

The definition of “Bribery” has been expanded to include actions such as lending assets to secure consent to proposal submissions or influence the acceptance of deliverables. Indefinite loans of luxury vehicles or apartments no longer fall outside the scope of bribery. Providing monetary loans also can constitute Bribery.

Anti-Bribery Measures Apply to Projects Valued Above THB 300 Million (Approx. USD $9 Million) 

The anti-bribery measures in the 2018 notification applied only to matters with a procurement budget of THB 500 million threshold or higher. The Notification decreases the threshold to THB 300 million. After 13 April 2025, business operators bidding on projects above this value will need to establish and submit anti-corruption policies and guidelines. 

Anti-corruption policies now required

The 2018 notification did not specify what the government expected anti-corruption policies or codes of conduct to include. The Notification addresses this gap by providing clear examples of policies and guidelines for business operators to adopt.  

Anti-corruption policies must address the following: 

• Code of conduct
  The code must contain a clear outline of ethical expectations, including a prohibition against providing money that could result in the company receiving undue advantages, or any other expenditures that may serve as a means of corruption. 
• Anti-corruption officers 
  This section should address the obligations and responsibilities of relevant persons, ranging from policymakers to compliance officers.
• Penalties for misconduct 
  The policy should specify that individuals who fail to comply with the policy will face disciplinary action by the company and also may be subject to legal penalties.
• Whistleblower channel 
  The policy should include details about reporting channels and ensure that whistleblowers are protected and that their positions within the company will be unaffected, during and after the investigation.
• Anti-corruption training plan  
  Anti-bribery training - either internal or external - should be conducted at least once per year.

Companies that currently do not have formal anti-corruption policies will need to implement an anti-bribery policy if they plan to participate in any government procurement deals valued above THB 300 million.   

Companies with anti-corruption policies in place should perform a review to ensure that no gaps need to be addressed and that the policy complies with the requirements in the Notification. 

Certification

The Notification introduces a compliance option, allowing business operators to certify anti-corruption measures under: 

• ISO 37001 (Anti-Bribery Management Systems); or 
• the Thai Private Sector Collective Action Against Corruption (CAC Certification). 

These certifications may be submitted instead of detailed anti-corruption policies.

Validity of Anti-Corruption Standards Throughout Project Duration

The Notification requires that anti-corruption policies not only be valid at the time of submission of proposals but also remain valid throughout the project duration, until the business operator receives the final payment.  

Similarly, business operators relying on certifications, such as ISO 37001, must ensure that the validity of the certification covers the entire project period.

Business operators who intend to submit a proposal for public procurement must comply with the Notification, including implementing the required anti-bribery policies or obtaining required certifications. Failure to do so will result in disqualification by the relevant authorities. A business operator’s failure to ensure that relevant policies or ISO 37001 and CAC Certifications continue throughout the duration of the relevant project could lead to the imposition of sanctions by the Anti-Corruption Cooperation Committee - the nature of which are being considered by the Committee.

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