Financial Institutions Must Prioritize Customer Protection
Strengthening Customer Protection through Regulation
In a move to prioritize customer protection, the Bank of Thailand has issued new regulations requiring financial institutions to regularly monitor the performance of their agents and ensure compliance with regulations and internal policies.
Key Requirements
- Financial institutions must affirm customer rights in contracts with their agents and stipulate legal provisions for taking necessary measures against agents who violate customer rights.
- The ultimate responsibility for performance, mistakes, robbery, or fraud by agents falls on the respective financial institution.
Customer Complaint Mechanism Established
The regulation also establishes an internal compliant redress and dispute resolution mechanism within six months of its issuance. This section must be independent and separate from other banking areas, with a simple and easy access for customers.
- Financial institutions are required to classify customer complaints and disputes based on sensitivity, urgency, and monetary value, and resolve them within specific time frames.
- The regulation also mandates that financial institutions provide free of cost/complaint services to customers.
Data Protection and Privacy
In addition, the regulation emphasizes the importance of data protection and privacy, requiring financial institutions to:
- Protect customer personal information and not take personal benefit from it or disclose it with others except when required by law.
- Reinforce preventive secured measures for their IT systems to protect customer information from hackers.
- Employees who have access to confidential customer information are required to use secured passwords and regularly change them.
Other Key Requirements
The regulation also requires financial institutions to:
- Prepare a printed board for customer complaints at their branches and agent locations
- Answer verification of customer bank statements required by consulates/embassies as soon as possible
- Make ATM machines accessible to customers for 24 hours, with notifications sent via email if the machine is not functional due to technical or justifiable reasons
- Credit customer bank accounts within one working day after requested by government and make payment when requested
- Provide written information to customers about type and date of information shared with other financial institutions
Implementation Deadline
Financial institutions are required to implement these new regulations within a specified timeframe. The Bank of Thailand will closely monitor compliance and take necessary measures against non-compliant institutions.
Conclusion
The regulation aims to strengthen customer protection, improve transparency, and enhance the overall quality of services provided by financial institutions in Thailand. By prioritizing customer protection, financial institutions can build trust with their customers and maintain a strong reputation in the market.