Thailand’s Anti-Money Laundering Office has released new guidelines on customer due diligence (CDD) for insurance companies to outline anti-money laundering and counter-terrorism financing measures based on the Anti-Money Laundering Act B.E. 2542 (1999). The previous guidelines were revoked and replaced by these guidelines. The guidelines include seven key measures: Anti-money laundering and counter-terrorism financing policy: Insurance companies must establish a policy in Thai that outlines the organization’s approach to assessing, managing, and mitigating risks related to money laundering, terrorism financing, and proliferation. Risk management framework: Insurance companies’ frameworks for risk management are to be divided into three stages: (1) internal risk management, (2) risk assessment before customer onboarding, and (3) ongoing customer risk management. CDD before engagement with customers: Insurance companies must implement a rigorous approval process to verify customers’ identities. Customer information review and transaction monitoring: Insurance companies must update customer information and the list of banned transactions to ensure compliance with current risk profiles. Enhanced CDD for high-risk clients: Insurance companies must apply a stricter level of verification and monitoring measures for high-risk clients, including reviews of financial transactions. Third-party reliance and subsidiary controls: Reliance on third parties is allowed only in processes for customer identification and verification of identity. Internal controls and policies for subsidiaries or affiliates must be updated regularly. Suspicious transaction reporting: Insurance companies must report any suspicious transactions, particularly whenever CDD is not available. For more details on the CDD guidelines, or on any aspect of insurance and anti-money laundering regulations in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Witchupong Chittchang at [email protected], Ajaree Trachukul at [email protected], or Sireethorn Wijan at [email protected].

Thailand’s Office of Insurance Commission (OIC) has issued orders announcing the premium rates for insureds who purchase insurance policies directly from life and non-life insurance companies. The orders, which were issued on September 2, 2024, allow insurance companies to set lower premium rates for insureds who purchase insurance policies directly from them, compared to those approved earlier by the OIC. Under the orders, both life and non-life insurance companies selling insurance policies directly to insureds may set the premium rate below the premium rate earlier approved by the OIC, but the discount may not exceed: 30% of the insurance premium for all types of insurance policies; and 35% of the insurance premium for insurance policies that utilize innovation or are sold through electronic channels. Here, “insurance policies that utilize innovation” means insurance policies that are currently being tested or have successfully met the objectives of the Insurance Regulatory Sandbox or the Product Innovation and Tailor-Made Sandbox, as approved by the OIC. The insurance companies may set the above two premium rates under the following conditions: The insurance contract must be entered into between September 1, 2024, and November 15, 2024; and The coverage start date of the insurance policy must not be later than December 31, 2024. For more details on the OIC’s orders regarding premium rates for insureds who purchase insurance policies directly from life and non-life insurance companies, or on any issue concerning insurance regulations in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Witchupong Chittchang at [email protected], Ajaree Trachukul at [email protected], or Sireethorn Wijan at [email protected].

Thailand’s Office of Insurance Commission (OIC) recently opened a public hearing on draft notifications regarding criteria, procedures, and conditions for naming life and non-life insurance brokerage businesses. The draft notifications aim to establish guidelines for naming and describing such brokerages. Key Principles Licensed insurance brokers must use “life insurance” or “non-life insurance” in their business name. When establishing an office, brokers must display a visible nameplate at the office front, starting out with the Thai words for “life insurance broker office” or “non-life insurance broker office” and the broker’s name; any signs indicating the office location must adhere to these same naming conventions. Inside, offices must display the insurance broker’s license and the power-of-attorney for receiving insurance premiums at the office. Noncompliance with these key principles may result in the OIC taking corrective action. Outlook After the draft notifications pass the public hearing stage, which closes on July 19, 2024, the OIC will consider the feedback and finalize the notifications. The duration of this process depends on the complexity of the notification and the public feedback. Normally, each notification takes at least 3–6 months before issuance. For more details on the OIC’s draft notifications or on any issue concerning insurance regulations in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Witchupong Chittchang at [email protected], Ajaree Trachukul at [email protected], Thammapas Chanpanich at [email protected], or Sireethorn Wijan at [email protected].