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Thailand Tightens Banking Regulations to Prevent Financial Crime
Government Introduces New Measures to Strengthen Banking Operations
Bangkok, June 27, 2024 - The Thai government has introduced new measures to strengthen banking regulations and prevent financial crime. As part of these efforts, the 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.
Key Changes in the Revised Notification
- Account holders suspected of engaging in or facilitating technological crimes will be classified as “high-risk persons.”
- Financial institutions must take steps to manage money laundering risks and comply with AMLO’s mandatory guidelines on customer due diligence.
- High-risk customers will be listed under two specific codes: HR-03-1 and HR-03-2.
Impact of the Revised Notification
The updated notification takes into account cybercrimes listed under the Emergency Decree on Measures for the Prevention and Suppression of Technological Crimes B.E. 2566 (2023). It requires financial institutions to assess the capacity of foreign institutional investors (FIIs) to determine the pre-funding requirement under relevant agreements signed between them. Securities companies must also be responsible for settling the shortfall of a securities purchase order through their proprietary trading account(s) if FIIs are unable to fully pay for such securities purchase order, except in certain circumstances.
Enhanced Transparency and Stability
These new regulations aim to strengthen banking operations and enhance transparency in Thailand’s financial sector. They demonstrate the government’s commitment to preventing financial crime and ensuring the stability of the country’s financial system.
Related Professionals
- Ratchanart Srifa
- Taranuch Ranoppawan
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