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Customer Verification and Risk Management for Financial Institutions

Based on BOT Notification No. 7/2559

Customer Verification

Financial institutions are required to implement a robust customer verification process to prevent money laundering and terrorist financing activities.

  • Verify identification information and documents of customers using a smart ID card or fingerprint authentication system.
  • If customers do not have a smart ID card, financial institutions can manage related risks by submitting additional identification documents for consideration.
  • For non-Thai natural persons opening accounts through electronic channels, financial institutions must carry out customer verification under equivalent standards and submit an application for prior approval to the Bank of Thailand.

Risk Management Framework

Financial institutions are expected to implement a risk management framework that includes guidelines and procedures for verifying identification information and documents of customers in case they do not have a smart ID card.

  • Implement a risk management framework for verifying identification information and documents of customers.
  • Include guidelines and procedures for submitting additional identification documents for consideration.

Transitory Provisions

Financial institutions are allowed to use current practices until 31 December 2016, after which they must switch to the prescribed verification approach.

  • Financial institutions that have not prepared for using the customer verification approach on a face-to-face basis must cautiously verify information and identification documents using current practices until 31 December 2016.
  • From 31 December 2016, financial institutions must use the verification approach prescribed in Clause 5.3.2.1.

Retention of Customer Information

Financial institutions are required to keep customer information and identification documents securely for a specified period.

  • Keep identification information and documents of customers or copies of those documents in a strong room or secured place from the day the accounts are opened.
  • The retained information must be kept for a period as prescribed by the Anti-Money Laundering and Combating the Financing of Terrorism Laws.

Effective Date

The notification comes into force on 7th July 2016, following its publication in the Government Gazette.