Asset actions: Thai actions against Thaksin to come to a head today

Thaksin, who is demonstrating a remarkable ability to find countries that will harbour him. Media frequently incorrectly say is in exile. He is not: he is a fugitive.

He has secured a diplomatic passport from Cambodia - which cynics suggest is a move by Cambodia to turn Thaksin into a pawn in the dispute over disputed border territory.

Thaksin flies into and out of Dubai with impunity. He has based a PR campaign from there and his speeches railing against the current government are broadcast on large screens in Bangkok.

It is in Bangkok that the government is most concerned about a backlash if the Court, as expected, converts the freezing order made more than two years ago into a confiscation order. For the past week, there have been warnings to stay away from Bangkok yesterday and today.

Thaksin has had little trouble gaining access to sufficient funds to enable him to lead the lifestyle of the rich. He sold his shares in soccer club Manchester City to interests based in Abu Dhabi - like Dubai one of the UAE.

The case demonstrates how asset actions work: a freeze then a seize then transfer of ownership to the state.

But it also demonstrates how they go wrong in international cases: Thailand has found it extremely difficult to get its orders recognised in other countries. That means that the freezing orders have not been given full effect, although individually some financial institutions have declined to allow Thaksin to deal with his accounts.

The consequential effect is that there has been no seizing of assets.

However, the making of the Supreme Court's Order, if it is to order confiscation, will officially transfer ownership of those assets to the state.

That means that Thailand will be able to rely on a complex network of agreements between states under which, if the correct form is followed, will mean that assets will be in fact and law transferred to the Thai state.

The case was not brought under Thailand's Anti Money Laundering Act, but the asset action does rely on that Act.

That gives the government access to the MLAT and MoU regime operating through the international law enforcement co-operation group, The Egmont Group.