Page 364 - Regional Comprehensive Economic Partnership (RCEP)

maintains measures with respect to the non-Party or a person of
the non-Party that prohibit transactions with the juridical person or
that would be violated or circumvented if the benefits of this
Chapter were accorded to the juridical person or to its
investments.

3. A Party may deny the benefits of this Chapter to an investor of
another Party that is a juridical person of that other Party and to
investments of that investor if persons of a non-Party own or
control the juridical person and the denying Party does not
maintain diplomatic relations with the non-Party.

4. Notwithstanding paragraph 1, Thailand may, under its applicable
laws and regulations, deny the benefits of this Chapter relating to
the admission, establishment, acquisition, and expansion of
investments to an investor of another Party that is a juridical
person of such Party and to investments of such an investor
where Thailand establishes that the juridical person is owned or
controlled by natural persons or juridical persons of a non-Party
or of Thailand.

5. For the purposes of this Article, for Thailand, a juridical person is:

(a) “owned” by natural persons or juridical persons of a Party
or of a non-Party if more than 50 per cent of the equity
interest in it is beneficially owned by such persons; and

(b) “controlled” by natural persons or juridical persons of a
Party or of a non-Party if such persons have the power to
name a majority of its directors or otherwise to legally direct
its actions.

6. The Philippines may deny the benefits of this Chapter to investors
of another Party and to investments of that investor where it
establishes that such investor has made an investment in breach
of the provisions of Commonwealth Act No. 108, entitled An Act
to Punish Acts of Evasion of Laws on the Nationalization of
Certain Rights, Franchises or Privileges, as amended by
Presidential Decree No. 715, otherwise known as The Anti-
Dummy Law, as may be amended.

7. A Party may deny the benefits of this Chapter to an investor of
another Party or of a non-Party and to investments of that investor
where such an investor has made an investment in breach of the
provisions of the denying Party’s laws and regulations that
implement the Financial Action Task Force Recommendations.

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