Financial Crime World

COMPLIANCE PROCEDURES IN BANKING IN THAILAND SET TO SHAPE DIGITAL ECONOMY

BANGKOK, Thailand - In a move to reposition the country’s financial sector for a digital economy, the Bank of Thailand (BoT) and other regulatory bodies are strengthening compliance procedures in banking. This push towards open banking and data sharing is expected to spur innovation, improve customer experience, and drive growth.

Key Regulatory Developments

  • The BoT has introduced a “3 O’s” approach: Open environment for various players, open infrastructure for greater access by stakeholders, and open data for further utilisation.
  • The Emergency Decree on Digital Asset Businesses, 2018, recognises digital assets and tokens as legitimate investments while regulating their use to protect investors and other stakeholders.
  • The Payment Systems Act, 2017 (PSA), provides a single licensing framework for fintech and e-payment service providers, minimising risks for all parties involved.

Industry Growth

Ten years ago, Thailand had just 500,000 mobile bank accounts. Today, that number has grown to over 75 million. In 2011, Thais conducted 95 million online money transactions. By the end of 2020, that figure had increased to over 9.6 billion.

BoT’s Regulatory Sandbox

The BoT has established a regulatory sandbox to encourage private sector innovation across the financial services landscape. Participation in the sandbox is mandatory under some circumstances, such as when setting up a peer-to-peer lending platform.

Open Banking Initiatives

  • The BoT intends to establish interoperability standards that allow for seamless data transfer when switching between service providers.
  • The development of a viable Digital ID infrastructure aims to facilitate progress towards a frictionless open banking environment.

The future of financial services in Thailand is expected to be shaped by these compliance procedures and regulatory developments. As the industry continues to evolve, it will be interesting to see how these initiatives impact customer experience, innovation, and growth.