This article summarizes the laws and regulations that stipulate the legal requirements to be met in Thailand’s banking and securities sectors. Readers will benefit from gaining a thorough understanding of the law in this area, as a wide range of topics are discussed. Such topics include the role of Thailand’s central bank, the various types of banking/financial institutions, the rules governing foreign exchange, the regulations imposed by the Financial Institutions Business Act, the function of the Securities and Exchange Commission, and the two phases of the Financial Sector Master Plan implemented by Thailand after the 1997 Financial Crisis. In particular, this article covers:

• The Bank of Thailand: Licensing requirements and regulatory obligations
• Banking and Financial Institutions: Classifications
• Financial Sector Master Plan – Phase I and II: Goals and the Deposit Protection Agency
• Banking Regulations: Restrictions on shareholding, obtaining a license to operate a financial institution, capital adequacy, investment limitations, ownership of real estate, lending limitations, interest rates, and charges
• Foreign Exchange: Regulations
• Banking Secrecy: Penalties for unlawful disclosure and exceptions
• Outsourcing: Restrictions and conditions
• Anti-Money Laundering: Role of the Anti-Money Laundering Office and requirements
• Securities: Role of the Securities and Exchange Commission, regulations, issuance, shareholding/takeover, securities businesses, and foreign investors’ concerns

This article was published by Complinet Complete (Thomas Reuters Accelus), a leading provider of governance risk and compliance solutions and subscription services for the global financial services industry.