Bangkok: The Bank of Thailand is seeking public consultation on draft regulations to tighten Know Your Customer (KYC) and cash transaction controls in order to combat financial crime. This initiative aims to enhance the country's financial security and protect consumers from becoming victims of financial misconduct.
According to Thai News Agency, the Bank of Thailand (BOT) is inviting public comments on draft guidelines for managing risks associated with customer use of financial services and cash transactions. These consultations will be open from February 10 to February 24, 2026. The draft regulations are designed to ensure that financial institutions implement rigorous due diligence processes to understand customer relationships, track transactions, verify identities, and appropriately terminate services based on assessed risks.
The BOT emphasizes the necessity for financial institutions and specialized financial institutions to avoid being exploited as channels for financial crimes. The proposed guidelines detail the responsibilities of board directors and senior management in overseeing Customer Due Diligence (CDD) processes. This includes establishing clear policies and procedures for identifying and verifying customer identities and monitoring transactions for unusual activities.
The draft regulations also outline the need for enhanced customer care, ensuring that honest customers affected by financial crimes are assisted quickly and fairly. They stress the importance of storing customer data and documents according to legal requirements and preparing reports on unusual transactions for the BOT. The guidelines extend to managing risks associated with cash transactions, requiring institutions to identify and verify customer identities and monitor transactions closely.
Public input on these guidelines is crucial for strengthening financial system stability and building public confidence. The BOT's effort to solicit feedback on these draft regulations reflects a commitment to creating a more secure financial environment for all stakeholders.