Thai legislation to assist E-KYC

The Bank of Thailand (BOT) has introduced a new regulation to facilitate the know your customer (KYC) process by using an electronic means (e-KYC) for account opening for deposit acceptance or fund acceptance from the public. KYC is one of the required processes imposed on financial institutions and certain types of reporting entities under the anti-money laundering law (AML law). Financial institutions need to comply with both the KYC process under AML law and the criteria issued by the BOT as the supervising regulator.

The BOT issued notification No. 7/2559 re Criteria in Taking Deposits or Taking Money from the Public, which became effective on 3 August 2016. Key requirements are summarized below.Concept. e-KYC procedures must have the same standards as the KYC procedures usually conducted where the relationship is established face-to-face. Account opening for deposit acceptance or fund acceptance from the public via electronic means can only be available for “individual customers”. Electronic means include: (1) financial institutions’ electronic devices; and (2) customers’ electronic devices installed with the financial institution’s application.

Since account opening for deposit acceptance or fund acceptance from the public via an electronic means is considered to be a use of new technologies in the provision of banking services, financial institutions must obtain a prior approval from the BOT.