Financial Crime World

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Thailand’s Banking Sector Adapts to Evolving Regulatory Landscape

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Maintaining a Robust Financial System in Thailand

As part of its ongoing efforts to maintain a robust financial system, Thailand’s banking sector continues to evolve in response to changing regulatory requirements. Recent developments highlight the importance of compliance for financial institutions operating in this market.

Understanding Thailand’s Regulatory Framework

According to a recent update from Thomson Reuters Accelus Compliance Complete, Tilleke & Gibbins’ banking and finance specialists have contributed valuable insights into Thailand’s regulatory framework for the banking and securities sectors. The update provides an in-depth look at various key topics, including:

  • Bank of Thailand Regulations

  • Forms of Financial Institutions Operating in Thailand

  • Thailand’s Financial Sector Master Plan – Phases I, II, and III

  • Foreign Exchange Regulations

  • Banking Secrecy: Penalties for Unlawful Disclosure and Exceptions

  • Outsourcing: Restrictions and Conditions

  • Financial Technology

  • Anti-Money Laundering

  • Investment by Foreigners in the Stock Exchange of Thailand

In related news, Vietnam’s Ministry of Finance has published a draft circular concerning securities transactions, clearing and settlement of securities transactions, activities of securities companies, and information disclosure on the securities market. The draft circular aims to amend several regulations impacting public companies and the securities market.

Key amendments include:

  • Relaxing Pre-Funding Requirements for Foreign Institutional Investors

  • Specifying That Securities Companies Must Assess the Capacity of Foreign Institutional Investors to Determine Pre-Funding Requirements Under Relevant Agreements Signed Between Them

  • Holding Securities Companies Responsible for Settling Shortfalls of Securities Purchase Orders Through Their Proprietary Trading Accounts If Foreign Institutional Investors Are Unable to Fully Pay

Updates from Thailand’s Anti-Money Laundering Office (AMLO)

In another development, Thailand’s Anti-Money Laundering Office (AMLO) has issued an amended notification concerning the rules for designating or reviewing the list of high-risk customers who require close monitoring under the Ministerial Regulation on Customer Due Diligence B.E. 2563 (2020). The updated notification includes provisions for listing high-risk customers under two specific codes: HR-03-1 and HR-03-2.

These developments underscore the importance of compliance in Thailand’s banking sector, particularly in areas such as customer due diligence and anti-money laundering.

For more information on these topics and other regulatory requirements affecting financial institutions operating in Thailand, please consult our experts at Tilleke & Gibbins.