With technological advancements, business operators are able to access more varieties of data than ever before, and are able to use that data to assess the terms on which loans are provided. This means that they can provide services to consumers more efficiently and with lower operating costs. More importantly, however, it allows them to provide financial services to a broader range of consumers who would otherwise not be able to access vital funds. To facilitate this, on September 15, 2020, the Bank of Thailand (BOT) introduced a new type of personal loan—the digital personal loan—under BOT Circular Re: Rules, Procedures and Conditions for the Undertaking of Digital Personal Loan Business. Sometimes known as “quick loans” or “easy loans” in other jurisdictions, this new type of loan instrument is intended to promote Under the circular, a digital personal loan is defined as a personal loan for which business operators utilize digital technology and alternative data (e.g., utility and mobile phone bill payment records) to assess the borrower’s ability and willingness to repay. The digital personal loans do not include loans for which car registration is used as collateral. The key requirements for undertaking a digital personal loan business are as follows: Business operators are expected to use technology and alternative data to determine the customer’s risk profile, based on their ability or willingness to repay. The alternative data that is used must be from a trusted source and use a sensible hypothesis in assessing the customer’s credit profile. Such business operators may comply with the BOT’s information-based lending guidelines. Business operators must use electronic channels for both the provision and repayment of the loans. This may include disbursing and repaying by bank transfer, direct debit, or e-money to create a digital footprint in the financial sector for the customers.

Thailand’s legal framework for preventing transactions that are deliberately designed to conceal the unlawful origin of funds is primarily contained within the Anti-Money Laundering Act B.E. 2542 (1999) (AMLA), as amended. As international money laundering practices evolve and emerge over time, prevention measures must evolve with them. Therefore the Financial Action Task Force (FATF) recently recommended amendments to the AMLA, along with the Counter Terrorism and Proliferation of Weapons of Mass Destruction Financing Act B.E. 2559 (2016) (CFTA), in order to be consistent with the latest international standards. The amendments passed through the public hearing stage on June 15, 2020, and the laws will now continue through the cabinet and parliament. Key Draft Amendments to the AMLA The definition of “financial institution” is expanded to include operators of many financial technology services, including: asset management and digital asset businesses; trustees in capital market trusts; derivatives businesses; authorized juristic persons under foreign exchange controls; personal loan businesses; nano- and pico-finance businesses; peer-to-peer lending businesses; crowdfunding platforms; regulated e-payment systems and services; non-bank credit card service providers; and additional businesses related to financial services or financial technology services at risk for money laundering (by further announcement in ministerial regulations). The definition of “professions” (formerly known as “section-16 professions”) is expanded to include additional occupations and businesses, such as accounting, auditing, auto trading and leasing, legal consulting, and additional professions at risk for money laundering (by further announcement in ministerial regulations). For cash transactions exceeding the prescribed threshold, parties in the listed professions are assigned recordkeeping duties in addition to their current reporting duties. The authority and power of the Anti-Money Laundering Office are expanded to include acting as a central financial intelligence agency to regulate, check, and rate the operations of companies and branches both within and outside of Thailand. Key

On November 2, 2020, it was widely reported by Thai media that Thailand’s Department of Business Development (DBD) has drafted ministerial regulations that would remove telecommunications, treasury center activities, and software development businesses from List 3 of the  Foreign Business Act (FBA). If enacted, these regulations would effectively mean that foreign entities (such as a foreign-majority-owned company) would no longer need to obtain permission from the DBD’s director-general and the Foreign Business Commission before engaging in these activities.

On 27 June 2020, Cambodia issued the new Law on Anti-Money Laundering and Combating the Financing of Terrorism (‘the 2020 AML/CFT Law’), that abrogates both the 2007 law of the same name and the 2013 sub-decree that accompanied the former law. All other laws relevant to AML will remain in effect. Jay Cohen, Sochanmalisphoung Vannavuth, and Robin Spiess, of Tilleke & Gibbins International Ltd., provide an overview of the 2020 AML/CFT Law, and how it differs from the 2007 in areas such as definitions and penalities.