Financial Crime World

Compliance Duties and Reporting Requirements for Specialized Financial Institutions (SFIs)

The Bank of Thailand has issued guidelines outlining the compliance duties and reporting requirements for Specialized Financial Institutions (SFIs). These guidelines aim to ensure that SFIs maintain effective compliance functions and report any non-compliance or fraud incidents to the Bank of Thailand in a timely manner.

Compliance Unit Personnel

To ensure effective compliance, SFIs must appoint personnel with skills in:

  • Communication
  • Decision-making
  • Problem-solving related to non-compliance with laws and regulations

These personnel will be responsible for ensuring that SFIs maintain effective compliance functions and report any non-compliance or fraud incidents to the Bank of Thailand.

Reporting Requirements

SFIs are required to submit reports on various aspects, including:

Annual Compliance Report

  • The report must contain specific details such as date of incident, unit involved, facts and details on the incident, vulnerabilities or gaps, corrective measures taken, etc.
  • The report must be submitted to the Bank of Thailand’s Specialized Financial Institutions Supervision and Examination Department.

Reporting Frequency

SFIs must report fraud incidents as follows:

  • Immediately for severe damages or public attention
  • Quarterly for complex cases requiring extensive time to investigate

Fraud Reporting

SFIs must submit a fraud report if any of the following incidents occur:

  • A case featured in the press or public attention
  • A customer dispute case that could not be resolved quickly or is complex
  • A case of fraud committed by staff or external parties resulting in damages exceeding a certain threshold

Use of Services Provided by Business Facilitators

SFIs may use services from business facilitators for their compliance function work, in accordance with the Bank of Thailand’s notification.

By following these guidelines, SFIs can ensure that they maintain effective compliance functions and report any non-compliance or fraud incidents to the Bank of Thailand in a timely manner.