In recent years, Thailand has witnessed significant developments in its personal finance sector, particularly in alternative lending options. This article explores two key concepts in the Thai financial landscape: nano finance and personal loans. These alternative lending models, regulated by the Bank of Thailand (BOT), aim to provide more accessible financial services to individuals and small entrepreneurs who might have limited access to traditional funding sources. Nano Finance: Empowering Small Entrepreneurs The nano finance scheme under the BOT’s supervision is designed to provide funding to small entrepreneurs who might have limited access to traditional financial resources. One of the key features of this scheme is the ability of licensed nano finance providers to use alternative data in assessing loan applicants’ ability to repay (information-based lending). To implement this approach, nano finance providers must have an internal policy on credit approval that supports: Identifying scope and processes for utilizing alternative factors or technologies in determining debt repayment capacity, credit line limits for each loan applicant and total credit limits, and acceptable debt repayment targets; Having resources and personnel with sufficient knowledge, capability, experience, and expertise to operate efficiently and effectively, as well as clear checks and balances; Establishing guidelines for selecting and analyzing factors or financial models to evaluate or predict loan applicants’ ability and willingness to repay; Having an internal sandbox to test key success factors of the selected factors or models; and Having a process for monitoring and reviewing the application of the selected factors or models in assessing debt repayment capability. This approach allows nano finance providers to make more informed lending decisions based on a broader range of data, potentially increasing access to finance for small entrepreneurs who may not have traditional credit histories or collateral. Personal Loans The personal loan scheme under BOT supervision aims

The General Department of Customs and Excise (GDCE) in Cambodia’s Ministry of Economy and Finance launched a trial phase of its Intellectual Property Rights Recordation System (IPRRS) on September 1, 2024. The system compiles necessary information and documents related to intellectual property rights in the country, enabling customs authorities to swiftly access these documents and enhance their ability to identify and intercept potential parallel imports and infringing goods at the border. This will also better facilitate ex-officio actions by customs authorities. The system is currently referred to as being in a “trial phase” to support further amendments or updates to address any potential technical errors that may arise from public use. However, the IPRRS is already fully operational. Types of Recordation Currently, the IPRRS allows two types of recordation: Intellectual property recordation is available for trademarks, geographical indications, copyrights, and related rights that are protected in Cambodia. It allows IP owners, authorized representatives, and legal representatives to record information and documents relating to such rights, including information on possible or potential counterfeit goods, with the GDCE. Recordation will give customs authorities quicker access to the information and enable them to promptly take action against potential counterfeit or infringing goods. Exclusive distributorship recordation is meant to streamline the process that takes place after the Ministry of Commerce issues a notice of the recordation of exclusive rights. Under the current practice, after receiving a copy of a notice of the recordal of an exclusive distributorship issued by the Ministry of Commerce (MOC), the GDCE needs to enter the information into their system manually to enable them to promptly identify or stop potential parallel importation at the border. This reportedly causes delays in border officers’ access to the necessary information. Recordation through the IPRRS, on the other hand, allows local exclusive distributors

On September 12, 2024, the Bank of Thailand (BOT) Notification Re: Virtual Bank Supervision Criteria took effect. According to this notification, virtual banks must adhere to standards for traditional commercial banks, along with additional requirements tailored to address virtual banks’ digital nature and corporate structure. Specific Requirements The concepts of supervision remain unchanged from the consultation paper titled “Criteria for Supervising Virtual Banks”. Some of the key additional provisions and details on supervision criteria relate to the following: Financial business groups: The notification identifies virtual banks as financial businesses, subject to the BOT’s regulations on financial business group supervision. If a virtual bank is a part of another financial institution’s financial business group, the virtual bank must be under a solo consolidated group. After the “initial phase” (see below), other financial institutions and companies within the financial business group are prohibited from extending credit to or engaging in transactions similar to lending activities with the virtual bank. Capital fund requirements: If other financial institutions’ investment in a virtual bank increases the capital fund in the financial system beyond a safe level and this poses a risk to other financial institutions, the BOT may order the relevant financial institution to maintain capital funds as the BOT deems appropriate. Service channels and outsourcing: Virtual banks must provide services solely through digital channels, except when necessary. For example, with the BOT’s approval, a virtual bank may use other commercial bank electronic branches via an ATM pool system, use a banking agent to serve customer needs for cash, or occasionally provide on-site services. Initial Phase The “initial phase” runs from the date that the virtual bank commences its operations until it receives the BOT’s approval to become fully operational. During this period, certain BOT supervisory requirements are relaxed as follows: Governance: Virtual banks in the initial phase may request

Following the endorsement of the report on the study of opening entertainment complexes by Thailand’s House of Representatives and Cabinet in early 2024, the draft Entertainment Complex Bill, B.E. … (the “Entertainment Complex Bill”) finally became open for public hearing and is now under the consideration of the Ministry of Finance. The Entertainment Complex Bill aims to liberalize and facilitate the establishment of entertainment complexes that include casinos, allowing participation from domestic and foreign investors alike. Key Takeaways Under the Entertainment Complex Bill, an “entertainment complex” is a venue that operates at least four types of entertainment businesses alongside a casino. These may include five-star hotels, restaurants and bars, game centers, and department stores, among others. Based on the information publicly available as of the date of this publication, the Entertainment Complex Bill and its prospective subordinate legislation should encompass the following key requirements. Licensing requirements: Business operators seeking to operate an entertainment complex business must first obtain a license. To qualify, applicants must: (1) be a company incorporated in Thailand and (2) have a minimum paid-up capital of THB 10 billion. This license will operate as a “super license” covering not only casino activities but also other operations within the complex, such as hotels, restaurants, bars, and game centers, which, under normal circumstances, may require separate licenses or permits. The license will be valid for 30 years and may be renewed for an additional 10-year term upon expiration. The license fees may depend on the location of the entertainment complex. Minimum investment requirements: Based on the preparatory works by the drafting committee, entertainment complex business licenses may be classified into four different categories based on the size of the investment: small, medium, large, and extra-large. At this stage, licenses for the extra-large category, requiring an investment of THB