You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

June 27, 2024

Thailand Updates Customer Codes for Heightened Money Laundering Risk

Subscribe to Updates

On May 17, 2024, Thailand’s Anti-Money Laundering Office (AMLO) issued an amended Notification Concerning the Rules for Designating or Reviewing the List of High-Risk Customers Who Require Close Monitoring under the Ministerial Regulation on Customer Due Diligence B.E. 2563 (2020). This notification, which took effect the following day, updates the previous version of the notification from 2022 to cover cybercrimes listed under the Emergency Decree on Measures for the Prevention and Suppression of Technological Crimes B.E. 2566 (2023). The amended notification sets out the steps that all financial institutions in Thailand must take to manage money laundering risks and to comply with the AMLO’s mandatory Guidelines on Customer Due Diligence.

Under the new notification, account holders suspected of engaging in or facilitating technological crimes, as recorded by the Anti Online Scam Operation Center (AOC), are to be classified as “high-risk persons.” The notification includes provisions for listing high-risk customers under two specific codes:

  • HR-03-1: This code applies to individuals who are the subject of either a petition or a complaint related to a predicate offense accepted by the relevant inquiry officer and recorded as a criminal case. It also covers individuals whose bank accounts are suspected of being used to conduct transactions related to crimes under the Emergency Decree on Measures for the Prevention and Suppression of Technological Crimes B.E. 2566 (2023), with victims seeking prosecution. The names of individuals in this category are received from responsible agencies according to the Criminal Procedure Code or the AOC and are documented in a publicly accessible online notification system.
  • HR-03-2: This code is for individuals involved in the commission of a predicate offense or those whose bank accounts are suspected of being used in such offenses, but whose cases have not been accepted or numbered by the relevant inquiry officer. Names under this category are provided by agencies such as the Royal Thai Police, the Financial Investigation Division, the Cooperation and Standard Development Division, banks, or other sources in Thailand.

These updated rules aim to ensure that relevant individuals and their transactions are closely supervised, thus enhancing the efficiency of monitoring high-risk customers and preventing technological crimes.

For more information on this new notification, or on any aspect of Thailand’s anti-money laundering regulations, please contact Chitchai Punsan at [email protected] or Panisara Moleegul at [email protected].

Related Professionals

Practices

Banking and Finance

Compliance and Investigations

Location

RELATED INSIGHTS​ 

October 12, 2023
Thailand has announced tax exemptions for issuers and holders of depositary receipts (DRs) of listed foreign securities to encourage DR transactions, create more investment products in the Thai capital markets, and promote and offer opportunities for retail investors to invest in foreign securities. The exemptions are laid out in the Royal Decree under the Revenue Code B.E. 2481 (No. 775) B.E. 2566 (Royal Decree No. 775), which came into force on August 16, 2023. DRs are certificates representing underlying foreign securities listed on a foreign exchange, but DRs are listed and traded on the Stock Exchange of Thailand (SET). Holders of a DR can receive the same benefits payable from the underlying listed foreign securities as direct holders of the listed foreign securities. According to the relevant notifications from Thailand’s Securities and Exchange Commission (SEC), DRs include the following: Certificates that confer the right to receive financial benefits equivalent or in reference to the received financial benefit from certain underlying listed foreign securities held by the certificate’s issuer; Unitized instruments having the same terms and conditions for each unit and issued by a custodian for the purpose of representing the holder’s right to claim for the deposited underlying listed foreign securities subject to the deposit agreement, or other rights as described by the custodian in the instrument. Issuance of a DR is subject to similar approval and disclosure requirements as those the SEC sets for general securities issued in Thailand. The recently announced tax exemptions for DR issuers and holders—which also apply to fractional DRs (also called DRx)—are detailed below. Corporate Income Tax Exemption Under Royal Decree No. 775, companies or registered partnerships that issue a DR in accordance with the Securities and Exchange Act B.E. 2535 (1992) (SEA) are exempt from paying corporate income tax (CIT) for income
Read More
August 25, 2023
On August 23, 2023, the State Bank of Vietnam (SBV) issued Circular No. 10/2023/TT-NHNN (“Circular 10”), suspending the implementation of certain provisions of Circular No. 06/2023/TT-NHNN (“Circular 06”) concerning the offering of onshore loans to customers by credit institutions, including commercial banks and foreign bank branches. (See our previous coverage of Circular 06 here.) Both Circular 06 and Circular 10 will take effect on September 1, 2023. Circular 10 re-allows three categories of loans that credit institutions were not allowed to provide under Circular 06, including: Loans for making or acquiring capital contributions or shares in other companies which have not yet been listed on the securities market or registered for trading on the unlisted public company market (UPCoM) system. Loans for paying capital contributions under capital contribution contracts, investment cooperation contracts, or business cooperation contracts for implementation of investment projects that fail to satisfy conditions for being put into business operation. Loans for financial reimbursement. This change is a result of the working session between Deputy Prime Minister Le Minh Khai and the Governor of the State Bank of Vietnam to consider loosening restrictions for loans to borrowers after the issuance of Circular No. 06/2023/TT-NHNN.
Read More
August 23, 2023
On August 21, 2023, the Central Bank of Myanmar (CBM) issued a public notice in local newspapers reiterating the rights and obligations associated with holding and exchanging foreign currency. The notice emphasized that foreign exchange-dealing license holders can perform foreign currency exchange business in the country with both cash and travelers’ checks. The permissible foreign currencies for sale at money changers include US dollars (USD), euros, Singapore dollars (SGD), Thai baht (THB), Malaysian ringgit, Chinese yuan, and Japanese yen. The CBM has regularly warned the public that internal residents can only possess amounts of foreign currency equivalent to USD 10,000 for up to six months from the date of receipt. Under the Foreign Exchange Management Law, internal residents are: individuals who have resided in or have had their main establishment in Myanmar for a period of at least 183 days during the preceding twelve-month period, with the exception of diplomatic personnel from foreign countries and foreign civil servants who carry out similar assignments; companies, organizations, and offices formed under any domestic law and companies, organizations, offices, and branches formed legally in Myanmar under any foreign law; and diplomatic or other personnel appointed by Myanmar in foreign countries. If foreign currency is not used within six months, it must be sold to and exchanged by licensed foreign currency exchangers at the official exchange rate (currently 1 USD to 2100 MMK) or deposited in a bank account. Anyone who possesses foreign currencies without permission or without the necessary license will be subject to penalties under the Foreign Exchange Management Law. For more details on foreign currency exchange in Myanmar, or on any aspect of the country’s financial regulations, please contact Tilleke & Gibbins at [email protected].    
Read More
August 21, 2023
On September 1, 2023, Circular No. 06/2023/TT-NHNN (“Circular 06”) issued by the State Bank of Vietnam on June 28, 2023, will take effect. This circular introduces noteworthy amendments to the regulations concerning the offering of onshore loans to customers by credit institutions (including commercial banks and foreign bank branches). Introducing New Lending Restrictions but Loosening Refinancing Restrictions Circular 06 introduces several new categories of loans that credit institutions are not allowed to provide. These include loans for depositing money in accounts; loans for making or acquiring capital contributions or shares in other companies which have not yet been listed on the securities market or registered for trading on the UPCoM system; and loans for paying capital contributions under capital contribution contracts, investment cooperation contracts, or business cooperation contracts for implementation of investment projects that fail to satisfy conditions for being put into business operation. [However, Circular No. 10/2023/TT-NHNN, issued shortly before Circular 06 was to take effect (see related story here), suspended the restrictions on the latter two categories until further notice.] A new exception in Circular 06 allows credit institutions to offer loans for repaying foreign loans if the foreign loans were granted in the form of deferred payment for purchase of goods. Circular 06 also amends an exception of the previous regulations that new loans for repaying foreign loans or onshore loans from other credit institutions can be offered, as long as the term of the new loan does not exceed the remaining term of the original loan and the refinanced loan has not yet undergone any repayment rescheduling. This exception removes a requirement under the previous regulations that the original loan had to be made “for business purposes.” Further, Circular 06 introduces the term “financial reimbursement” (“cho vay bù đắp tài chính” in Vietnamese) whereby credit
Read More