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Bank of Thailand Regulation: Commercial Banks’ IT-Related Services Business
The Bank of Thailand (BOT) has issued a notification to regulate commercial banks’ IT-related services business. The following are key points from the notification, outlining various requirements and guidelines for compliance with relevant laws and regulations.
Requirements for Commercial Banks
Retaining Information
- Commercial banks must retain information related to their IT-related services business to make it available to the Bank of Thailand’s financial institution examiner upon request.
Setting Investment Ratio and Revenue Ratio
- Commercial banks must set a ratio of investment in IT-related services and a ratio of revenue from these services, in line with their business undertaking policy and risk tolerance.
Compliance with Related Laws
- Commercial banks must comply with relevant laws and regulations, including the Bank of Thailand’s notification on:
- Market conduct
- Personal data protection
- Testing and developing innovation using new technologies (Regulatory Sandbox)
Requesting Waivers for Noncompliance
- If a commercial bank is unable to comply with the regulations stipulated in this notification, it must submit a letter to the Bank of Thailand to request a waiver on a case-by-case basis.
Consequences of Non-Compliance
- The Bank of Thailand may impose additional conditions for business operations or order of rectification if it finds that a commercial bank is violating or incompliant with the regulations.
- In extreme cases, the Bank of Thailand may defer or terminate IT-related services business partially or wholly.
Purpose and Effectiveness of the Notification
The notification aims to ensure that commercial banks’ IT-related services business operations comply with relevant laws and regulations, maintain the security and prosperity of the people, and overall financial system.