Aviation specialists from Tilleke & Gibbins’ Bangkok office have contributed the Thailand chapter for Aviation Finance & Leasing 2023 from Chambers and Partners. The guide covers the most important legal developments affecting aircraft lessors, lessees, and financiers in 32 jurisdictions worldwide. In addition to the Thailand chapter, Tilleke & Gibbins also provided the Vietnam chapter for Aviation Finance & Leasing 2023. Each chapter provides in-depth details on the legal regimes affecting all aspects of aircraft sale and purchase, aircraft and engine leasing, and aircraft debt finance, including sale and lease agreement terms; taxation; lease registration and enforcement; lease assignment/novation; insurance and reinsurance; debt structuring; securities; liens; and many others that affect the day-to-day operations of leading players in the aviation industry. Chambers and Partners’ Global Practice Guides provide in-house counsel with expert legal commentary focusing on practical legal issues affecting business, enabling readers to compare legislation and relevant procedures across a range of key jurisdictions. The Thailand chapter of Aviation Finance & Leasing 2023 is available as a PDF through the button below, courtesy of Chambers and Partners. The full guide is accessible for free on the Chambers and Partners website.

On July 13, 2023, the Central Bank of Myanmar (CBM) lowered the percentage of export income in foreign currency that must be converted into Myanmar kyat (MMK) within one day of receipt. The changes are contained in CBM Notification No. 15/2023, which took effect immediately. The notification specifies that only 50 percent of export income in foreign currency must be converted into MMK at official CBM rates within one day, in accordance with Myanmar’s requirement to convert foreign currency transfers and balances. The remaining 50 percent of the export earnings must be converted into MMK if the exporter does not use it within 30 days. The 50 percent requirement is a relaxation from the previous rules in CBM Notification No. 36/2022, under which 65 percent of income received from exportation needed to be converted into MMK within one day. Therefore, the new requirement grants a certain amount of flexibility to exporters in Myanmar regarding the currency conversion requirement. For more details on these foreign exchange developments, or on any aspect of financial regulations in Myanmar, please contact Tilleke & Gibbins at [email protected].

The Bank of Thailand (BOT) has issued new notifications amending regulations for payment businesses that fall under the Payment Systems Act B.E. 2560 (2017) to promote transparency and good governance in the payment industry. Notification No. SorKorChor 2/2566 (“Notification 2”) increases the required qualifications for applicants seeking a license to provide payment services designated as being under the BOT’s supervision, and Notification No. SorKorChor 4/2566 (“Notification 4”) stipulates additional duties and exemptions for certain types of business operators. The notifications were published in the Government Gazette on July 7, 2023, and came into effect the following day. Additional Qualifications Notification 2 expands the list of prohibited characteristics for business operators applying for a license or registration to engage in a designated payment service, and their directors. For example, applicants must not have been ordered to suspend or cease their operations, and their registration or license to engage in financial business or operate a designated payment system or service must not have been revoked. The notification defines “financial business” as including financial institutions, credit card business, personal loan business, securities business, and so on. In addition, applicants’ directors and management must not have prohibited characteristics, such as being involved in the management of a financial business or designated payment system or service that was ordered to suspend or cease its operations. The applicable registration or license also must not have been revoked. Reporting Requirements During the application process, Notification 2 requires applicants to disclose information on shareholders and related parties (including spouses) who hold an aggregate 10 percent or more of the total paid-up shares. Notification 4 imposes this same reporting duty regarding shareholders and related parties but applies it to licensed operators in an ongoing manner. Existing payment service operators must make their first report of this information to

In April 2022, Myanmar’s State Administration Council established the Foreign Exchange Supervisory Committee (FESC) to approve foreign currency conversion, make exemptions to foreign exchange restrictions, and permit overseas foreign currency transfers. Because of the FESC’s establishment and related regulatory changes, companies that would like to transfer funds out of Myanmar for capital reduction, share capital for liquidated companies, share transfers, or share dividends must abide by the FESC’s requirements, which vary depending on the type of company. The Myanmar Investment Commission (MIC) has announced that companies permitted by or endorsed under the Myanmar Investment Law must submit various supporting documents when applying to transfer foreign currency internationally. These documents, which must be addressed to the MIC chairman, include the following: Prescribed form for transfer of foreign currency; Application letter giving a specific reason for the transfer; Original board of directors’ resolution; Audited financial statements for the relevant financial year; Up-to-date bank statement of the company; Tax assessment confirmation letter for the relevant financial year; Tax clearance certificate for the relevant financial year, in the case of liquidated companies; and Copy of the updated quarterly performance report using the form prescribed by the MIC. If the transferor cannot submit the documents in person, the required documents need to be accompanied by a power-of-attorney or appointment-of-representative letter. Though the FESC has not announced its own documentation requirements, experience shows that MIC companies must submit an application to the MIC Investment Monitoring Division before submitting their offshore remittance application to the FESC. Once the MIC has received a complete application, it will request a recommendation from the Central Bank of Myanmar (CBM). With this recommendation in hand, the Investment Monitoring Department will then seek FESC approval internally. Aside from MIC companies, DICA companies (i.e., companies that do not require approval from the