Bank of Thailand Notification No. 19/2562: Know Your Customer (KYC) Procedures and Anti-Money Laundering Measures

Overview

On March 2, 2020, the Bank of Thailand issued Notification No. 19/2562, outlining the requirements for Know Your Customer (KYC) procedures and anti-money laundering measures for financial institutions in Thailand.

Key Requirements

• Compliance with KYC regulations: Financial institutions must comply with the KYC process as prescribed by the Bank of Thailand, including verification of customers’ identity, address, and business information.
• Use of technology: Financial institutions can use biometric comparison technology for authentication to verify customers.
• Subsequent deposit-account opening: For existing customers who have already completed the KYC process, financial institutions may use a simplified KYC process or consider other processes based on the customer’s risk level and service channel used.

Alternative KYC Processes

Financial institutions that wish to opt for an alternative KYC process or operation must submit their plan to the Bank of Thailand for approval.

Consequences of Non-Compliance

• Additional conditions, amendment, deferment, or suspension of service: The Bank of Thailand may prescribe additional conditions, amend, defer, or suspend all or some of the operations if financial institutions do not comply with regulations or if their operations impact public safety and stability.

Transitional Provision

Financial institutions have 180 days from the effective date to develop a system that complies with the guidelines. They must submit a plan and progress report within 60 days.

Objectives

The notification aims to:

• Promote efficiency in the financial institution system
• Enhance micro-prudential stability
• Ensure good risk management, fairness, and consumer protection