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THAILAND ENHANCES BANKING REGULATIONS TO PREVENT FINANCIAL CRIME
Bangkok, THAILAND - August 23, 2016
The Thai government has introduced new regulations to strengthen financial institutions’ security and stability, with a focus on preventing financial crime.
Improved Customer Verification Procedures
According to Bank of Thailand Notification SorNorSor 7/2559, financial institutions must implement effective identification and verification procedures for customers, commonly referred to as “Know Your Customer” (KYC). The regulations require banks to improve their risk management and ensure that electronic Know Your Customer (e-KYC) is available and effective.
Restrictions on Electronic Deposit Services
The new rules restrict the acceptance of deposits or receipt of money from the public via electronic means to natural persons only. Financial institutions providing this service must:
- Ensure that e-KYC is accurate and available
- Use electronic devices such as video conferencing equipment to enable bank officers to interview and observe a customer’s behavior in real-time
Enhanced Security Measures for Virtual Teller Machines and Kiosks
Financial institutions accepting deposits or receiving money through virtual teller machines, kiosks, computers, or other electronic devices must:
- Examine customers’ information and identification documents using a smart card reader
- Use the government’s identification and verification system or fingerprint verification system to ensure accuracy
Implications for Banks and Customers
The new regulations will take effect by the end of 2016, requiring financial institutions to improve their internal systems, standards, and risk management. Both commercial banks and their customers must be prepared for a higher level of scrutiny when accepting deposits or receiving money from the public.
Contact Us
For more information on these regulations or other banking-related matters, please contact:
- Cynthia M. Pornavalai at [email protected] (+66 2653 5559).