Notification from Bank of Thailand: Know Your Customer Regulations for e-Money Services
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Purpose
The Bank of Thailand has issued a notification regarding the implementation of Know Your Customer (KYC) regulations for e-Money services. The purpose of this notification is to ensure that e-Money service providers in Thailand adhere to anti-money laundering and combating the financing of terrorism (AML/CFT) standards.
Key Requirements
Identification and Verification
To comply with KYC regulations, e-Money service providers must verify customers’ identities through one of two methods:
- Smart ID Card Examination: Providers can use an electronic examination system to verify customers’ smart ID cards.
- Suspension in Examining Status: If applicable, providers can suspend the status examination process using an electronic examination system provided by government agencies.
Risk Assessment and Management
Providers must regularly review and adjust their policies, measures, and internal control procedures to manage risks related to KYC. This includes:
- Regularly reviewing customer information and transactions
- Identifying potential money laundering or terrorist financing risks
- Implementing measures to mitigate identified risks
Record-Keeping
Providers must keep identification information and evidence for a specified period as required by AML/CFT regulations.
Alternative Methods
Providers can propose alternative methods for customer verification, subject to Bank of Thailand approval. This allows providers to adapt to changing circumstances and improve their KYC processes.
Transitional Provisions
To allow existing e-Money service providers to comply with the new regulations, the following transitional provisions apply:
- Existing providers not compliant with KYC regulations have 180 days to comply.
- Non-compliant providers must submit a plan to the Bank of Thailand within 60 days of the notification’s effective date and report progress every 30 days.
Effective Date
The notification comes into effect on the day following its publication in the Government Gazette, which was March 14, 2020.
Conclusion
This notification aims to enhance AML/CFT compliance and protect the integrity of Thailand’s financial system. E-Money service providers must comply with the new regulations to maintain a safe and secure financial environment.