Thailand authorities are set to investigate the source of the funds behind Thaksin's offer.
But Keith Harris, executive chairman of Seymour Pierce Investment Bank, told BBC Five Live's Sportsweek programme: "The money to buy Man City is clean.
"It has been legitimately and transparently transferred to the UK."
Thaksin, who lodged a formal offer for City on 21 June, is facing corruption charges in Thailand over a property deal and has had £830m of his assets frozen.
And Thailand's finance minister Chalongphob Sussangkarn says there is also a 'mystery' over how Thaksin has funded his bid for City.
While he was prime minister, Thaksin was required by law to declare all his assets and, according to Chalongphob, he did not declare any foreign assets.
"So this money which would be used for Manchester City is still a mystery to Thailand," Chalongphob said.
"I am sure Thailand's Asset Examination Commission will look at the source of these funds and try to see whether they are legal funds that were taken out or by other means.
"If the deal for City goes ahead and the money paid they will try to look at it. We don't know yet how he is going to finance it. We won't know until the deal is finalised."
Harris is adamant the charges facing Thaksin in Thailand will have no bearing on his bid for the Premier League club.
"The charges levelled against him are politically motivated by a military government that is unelected.
"He was the Prime Minister there and was exceptionally popular. He was also a successful businessman.
"A number of bank accounts in Thailand, some personal and some corporate, have been frozen.
"But the money that has been used to finance the takeover and which will then be used to invest in the club is in English bank accounts and beyond their reach."CREDIT : news.bbc.co.uk
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