Thailand’s KYC Regulations for e-Money Services: Enhancing Security and Trustworthiness
The Bank of Thailand (BOT) has introduced new regulations on Know Your Customer (KYC) processes for e-money service activation in a bid to ensure a secure and trustworthy eco-system for e-money services and promote access to other financial services through digital platforms.
Background and Rationale
- Increasing Popularity and Risks of e-Money Services
- Convenience in payment and fund transfer
- Risks associated with e-Money businesses
- Counterfeit and unauthorized use of personal information
- Adoption of new technologies and online channels
- Role of the Bank of Thailand (BOT) and Scope of Application
- Issued under Section 24 of the Payment System Act
- Applies to all e-money businesses under BOT supervision
Key Provisions
Definition of Terms
- Business provider
- Customer
- Person with legal agreement
- Credible source of information
- BOT
Customer Identification and Verification
- Genuine customers
- Compliance with AML and CFT laws
- Identity document examination
- Ownership proof
- Risk evaluation for product and service activation channels
Identity Verification for Corporate customers and their Delegates
- Verification of authorized persons
- Digital ID platforms as an option
Customer Authentication Methods
- Consistent with risk level of each product and service type
Policies, Measures, and Internal Control Procedures
- Establishing clear policies and practices
- Ensuring security and integrity of e-money services
Keeping Identification Information and Evidence
- Compliance with Anti-Money Laundering laws
- Secure storage and maintenance for a specified period
Additional Compliance Measures and Relaxations
- Use of alternative KYC methods upon permission
- Special circumstances for non-compliance
Transitional Provisions and Effective Date
- Develop and implement KYC systems by March 13, 2020
- Compliance plans and timelines for non-compliance submission
- Immediate effect following government gazette publication