Everything you need to know about KYC/AML requirements in Thailand.
Despite the country’s economic slowdown, Thailand remains an attractive fintech destination. A 2019 report by EY predicted Thailand would become a key ASEAN fintech hub with its high level of digital penetration and young demographic.
According to Statista, the market value of the fintech sector in Thailand amounted to approximately 37.6 billion Thai baht (1 bn USD) in 2021—compared to 14.3 billion baht in 2019 (401 m USD)—and it keeps growing.
Moreover, the Thai government is seeking to duplicate the Singapore model for startups, in a move to establish a pathway for venture capital companies to reap tax-free capital gains from the sale of startup shares.
However, those seeking to open a business in Thailand need to be aware of the country’s AML/KYC regulations. Let’s dive into them.
According to the Anti-Money Laundering Act B.E. 2542 (1999), the following industries must comply with Thailand’s AML regulations:
It is also worth mentioning that casinos, betting and gaming activities are forbidden in the country.
The Bank of Thailand issued a circular stating that cryptocurrencies are not legal tender, meaning they can’t be used to pay for services. However, cryptocurrencies and other digital tokens are considered “digital assets” in accordance with the Royal Decree on Digital Asset Business (the ‘Royal Decree’), which took effect on May 14, 2018. Under the Royal Decree, Digital assets may be issued, traded, and exchanged through digital asset business operators.
Digital asset businesses under the Royal Decree are categorized into three types:
Digital asset businesses operating in Thailand shall be approved by the Minister of Finance upon recommendation of the Thai Securities and Exchange Commission (SEC). In turn, digital asset business operators must comply with the country’s AML requirements.
According to the Anti-Money laundering Act, affected financial institutions and professions should:
Customer Due Diligence
Identification of a customer who is a natural person includes, at the minimum, the following information:
(1) Full name
(2) Date of birth
(3) Personal identification number
(4) Address as appears on the customer’s personal identification card or house registration. (In case of a foreigner, the country of citizenship and current address in Thailand shall be provided—except for foreigners with no address in Thailand, whose current address shall be used instead)
(5) Other contact information such as a phone number or email address.
Identification of a customer which is a legal entity shall, at the minimum, include:
(1) Name of the legal entity
(2) Type and purposes of the business
(3) Address and phone number
(4) Taxpayer Identification Number (if any)
(5) Full name of every person authorized to sign on behalf of the legal entity
(6) Information of representative:
For more details, please refer to Ministerial Regulation B.E. 2563 (2020) Art. 17 and Prime Minister Office Notification, Art. 4.
Apart from customer identification and verification, companies must also conduct:
According to the AML Act, affected financial institutions and professions must retain information in the following way:
Rules and procedures for record-keeping shall be prescribed by the Anti-Money Laundering Board.
The penalties depend on the offenses committed and other circumstances, and may include fines or imprisonment of up to 10 years, as well as a combination of both.
According to the country’s main Anti-Money Laundering Act, “any person who:
Despite some deficiencies, FATF doesn’t consider Thailand a high-risk country for money laundering.
The penalty for money laundering in Thailand depends on the exact offenses and may include a fine, imprisonment of up to 10 years, or a combination of both.