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2026-04-01 09:20:56 · pthandapani@vixio.com
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3020359
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83d4529da0024b96802df076e1f69187

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TITLE: Thailand's Bank of Thailand Issues Customer Risk Management Guidelines for Financial Institutions BODY: On the date of this announcement, the Bank of Thailand (BOT) issued guidelines for financial institutions to manage risks arising from customer use of financial services. The guidelines, issued under Sections 39, 41, and 71 of the Financial Institution Business Act of 2008 (as amended), apply to all financial institutions regulated under Thai financial business law. The guidelines establish a comprehensive risk management framework covering the entire customer relationship lifecycle, from initial customer identification through transaction monitoring and relationship termination. Financial institutions must implement policies and procedures to prevent their services from being used to facilitate money laundering, asset concealment, or other unlawful activities, while ensuring appropriate and fair treatment of affected customers. Key requirements include: establishing written risk management policies approved by the board of directors; implementing customer due diligence (CDD) and enhanced due diligence (EDD) procedures proportionate to customer risk; conducting know-your-customer (KYC) verification using specified identification documents; monitoring transactions for suspicious activity; identifying beneficial owners; and maintaining secure records. For deposit accounts, financial institutions must verify customer identity using smart card readers for Thai nationals and specified documentation for foreign nationals. The guidelines establish a three-lines-of-defense governance structure with defined roles for front-line staff, internal compliance and risk management functions, and internal audit functions. Financial institutions must report suspicious transactions to the BOT according to specified formats and may request exemptions for low-risk products on a case-by-case basis. Existing customers with accounts opened before these guidelines take effect must have their information updated according to the new standards when they next conduct transactions or request services. The BOT may impose additional conditions, order corrections, or suspend services if institutions fail to comply with these guidelines. REFERENCES: Bank of Thailand official announcement on customer risk management guidelines for financial institutions
  • Scraped:2026-04-01 09:20:56
  • Created:2026-04-01 09:20:56
  • By:pthandapani@vixio.com (6)