Financial Institution Business Act B.E. 2551 (FIBA)

FIBA is the key legislation governing the business operations of financial institutions and financial businesses in Thailand. The Act establishes a licence-based regime for Thailand’s banking and related financial services, overseen by the Bank of Thailand (BOT). Under this Act, financial businesses are defined as:

• the commercial banks;
• finance companies;
• credit foncier businesses;
• securities companies;
• derivatives trading;
• life insurance businesses; or
• any other businesses as prescribed by the BOT.

Financial institutions under the Act include commercial banks licensed by the BOT to conduct commercial banking business, finance companies and credit foncier businesses. It also further refers to retail banking businesses, commercial banks that are subsidiaries of foreign commercial banks and branches of foreign commercial banks licensed to operate financial business in Thailand. These financial institutions, other than foreign financial institutions, may conduct financial services in Thailand only if they are public limited companies incorporated in Thailand and hold a licence issued by the Minister of Finance upon the BOT’s recommendation pursuant to the provisions of the FIBA and BOT’s notification. Foreign financial institutions may operate their banking business through the establishment of branch offices provided that the relevant licence from the Ministry of Finance has been obtained.

In addition to the key financial institution licences mentioned above, financial institutions are also be required to obtain approvals to operate additional activities similar to the lending business or any other related business activities such as hire purchase and leasing, factoring, asset management, and securitisation. Approval for each financing-related activity must be considered and obtained from the BOT on a case-by-case basis and is not generally permitted under the financial institution licence.

In 2024, the Ministry of Finance, under the supervision of the BOT, also issued a notification prescribing the rules, procedures and conditions for the application for and the issuance of a virtual banking licence in response to the development of technology and digital data, which has enhanced financial services available in digital platforms.

Notifications of the Ministry of Finance Issued Pursuant to Revolutionary Council Decree No 58 (PorVor No 58)

Certain financing activities and products are regulated and required to obtain the relevant licences from the Ministry of Finance, under the supervision of the BOT. These include credit card businesses, unsecured lending transactions to individual customers for non-specific purposes (Personal Loans), unsecured loans to individuals for their business undertakings (Nano Finance), secured or unsecured loans to individuals within certain provincial areas (Pico Finance), and the provision of electronic platforms or networks for peer-to-peer lending (P2P Platforms). Only non-banks are subject to this licensing requirement, and financial institutions are exempt from obtaining such licences when conducting business activities relating to credit cards, Personal Loans, Nano Finance, Pico Finance and P2P Platforms.

Securities and Exchange Act B.E. 2535 (the “SEC Act”)

While securities companies are included within the definition of financial business under the FIBA, the licensing requirements for securities companies and legal compliance with respect to any fundraising from the public through the sale or distribution of securities are governed by the SEC Act. To enhance and regulate securities transactions in Thailand, two regulatory authorities, namely, the Securities and Exchange Commission of Thailand (SEC) and the Stock Exchange of Thailand (SET) were also established under this Act.

According to the SEC Act, securities businesses are defined as:

• securities brokerage;
• securities dealing;
• investment advisory services;
• securities underwriting;
• mutual fund management;
• private fund management; and
• other businesses relating to securities as may be prescribed by the Ministry of Finance upon the recommendation of the SEC.

These securities businesses are required to obtain a relevant licence from the Ministry of Finance upon the recommendation of the SEC prior to commencing its business operations.

Business licences for securities companies under the SEC Act are classified into different categories, based on the purpose of business operations, as follows.

• Licence for securities business category A – including securities brokerage, securities dealing, securities underwriting, investment advisor services, mutual fund management, private fund management, securities borrowing and lending, and venture capital management.
• Licence for securities business category B – including securities brokerage of debt securities and sukuk, securities dealing of debt securities and sukuk, securities underwriting of debt securities and sukuk, investment adviser services and securities borrowing and lending.
• Licence for securities business category C – including mutual fund management, private fund management, securities brokerage of investment units, trust certificates of trusts having similar characteristics to mutual funds, or any other securities prescribed by the SEC as having similar characteristics to investment units (Investment Units), dealing in Investment Units, underwriting of Investment Units, investment advisory services and venture capital management.
• Licence for securities business category D – including securities brokerage of Investment Units, dealing in Investment Units, and underwriting of Investment Units.
• Licence for securities business category E – including securities brokerage of equity instruments, dealing in equity instruments, underwriting of equity instruments, investment adviser services, and securities borrowing and lending.
• Licence for securities business as an investment adviser.
• Licence for securities business as a securities borrowing and lending business.
• Licence for securities business as a venture capital business.
• Licence for securities business as a private fund business.

Exchange Control Act B.E. 2485 (the “FX Act”)

The FX Act was enacted with the aim of centralising and controlling the use of foreign exchange in the public interest, to prevent the transfer of funds or capital out of the country and to maintain the stability of the exchange rate and the value of the Thai baht. Under the FX Act, the operation of businesses related to foreign currencies and letters of credit is prohibited unless approved by the Ministry of Finance or registered with the competent officers.

Cross-border sale, purchase, exchange or remittance transactions involving foreign currency are generally permitted, subject to certain prohibitions or restrictions, provided that they are conducted by commercial banks or other authorised institutions (eg, qualified companies, money changers or money transfer agents) holding a foreign exchange licence issued by the Ministry of Finance.

BOT is the regulatory body authorised to oversee legal compliance under the FX Act; however, it has delegated its authority to commercial banks holding a foreign exchange licence to process and approve remittance transactions. In any case, sufficient documentation of such underlying transactions must be submitted to the BOT as supporting evidence. For transactions specified on the Negative List, BOT approval for such remittances is required on a case-by-case basis.

Payment System Act B.E. 2560 (PSA)

Following the increase in electronic payments in Thailand, the PSA was enacted to regulate businesses in relation to electronic payment systems. While the BOT has issued a notification granting general authorisation to all commercial banks to operate electronic money businesses specified under the FIBA, such authorisation does not exempt commercial banks from the licensing and registration requirements under the PSA. Therefore, commercial banks remain subject to those requirements under the PSA. Pursuant to the provisions of the PSA, regulated electronic payment systems and services are required either to register with the BOT or to obtain a licence from the Ministry of Finance upon the recommendation of the BOT, depending on the scope of their business operations. These are classified as follows.

• Highly Significant Payment Systems – including the Bank of Thailand Automated High-value Transfer Network – BAHTNET system and the Imaged Cheque Clearing and Archive System – ICAS system.
• Designated Payment Systems – including Inter-Institution Fund Transfer Systems, Payment Card Networks and Settlement Systems.
• Designated Payment Services – including credit card, debit card or ATM card services, electronic money services, services for receiving electronic payments and services for transferring money by electronic means considered as fund transfers between bank accounts or money remittance.

Life Insurance Act B.E. 2535 and Non-Life Insurance Act B.E. 2535 (the “Insurance Acts”)

Insurance businesses in Thailand are mainly governed by the Life Insurance Act B.E. 2535 and the Non-Life Insurance Act B.E. 2535, depending on the scope of business operations of each insurance company. To operate an insurance business in Thailand, the business operator must be a public limited company registered in Thailand and obtain the relevant licences from the Ministry of Finance, under the supervision of the Office of Insurance Commission of Thailand (OIC) in accordance with the respective Insurance Acts.

Foreign entities intending to operate insurance businesses in Thailand are required to obtain approval from the Ministry of Finance to establish branch offices for such purpose and are subject to asset maintenance requirements.

Anti-Money Laundering Act B.E. 2542 (the “AML Act”)

Under the AML Act, financial institutions and certain business operators (eg, electronic payment system providers, electronic money wallet providers and securities companies) must comply with the legal requirements regulated by the Anti-Money Laundering Office (AMLO), including (but not limited to) reporting specified transactions to the AMLO and conducting customer due diligence or Know-Your-Customer (KYC) identification processes.

Generally speaking, financial products and services in Thailand are subject to a comprehensive regulatory framework. If financial products or services are offered to Thai customers or within the Thai market, they are likely to fall within the regulatory perimeter.

Regulated financial activities include:

• lending and credit-like activities;
• deposit-taking;
• payment system and e-money services;
• financial service platforms;
• foreign exchange and remittance services;
• securities and derivatives businesses;
• fund management;
• insurance; and
• financial advisory services.

The principal regulators are the BOT, the Ministry of Finance, the SEC and the OIC, each overseeing activities within their respective mandates.

In terms of foreign entities conducting financial services in Thailand, foreign financial service providers and Thai entities with majority foreign ownership are also regulated under the Foreign Business Act B.E. 2542 (1999) (FBA), which requires that a foreign business licence or foreign business certificate be obtained prior to undertaking certain activities in Thailand. One of the key restricted businesses includes the provision of “other service businesses”. The term “services” is broadly interpreted by the Department of Business Development, Ministry of Commerce (DBD) and may include the aforementioned financial activities, subject to certain exceptions.

From a regulatory perimeter perspective, the level of supervision depends on the nature of the business activity. Some activities require only notification or registration, while others require a licence or formal regulatory approval from the relevant authority before commencing operations.

In general, if financial services or products do not have a Thai nexus – ie, they are not offered to Thai residents and are not marketed or conducted within Thailand – such activities may fall outside the Thai regulatory regime.

While foreign financial service providers and Thai entities with majority foreign ownership remain subject to the licensing requirements under the FBA, certain financial services regulated under other specific regulations (eg, commercial banks under the FIBA, securities business under the SEC Act, and insurance companies under the Insurance Acts) are exempted from being considered “other service businesses” under the FBA.

For foreign financial services that are not exempted under the FBA, such relevant entities may be eligible to apply for a foreign business certificate instead of a foreign business licence under the FBA if they are classified as promoted businesses under the Investment Promotion Act B.E. 2520 (1977) and have obtained a promotion certificate from the Board of Investment (BOI). The process for obtaining a foreign business certificate is generally less complex and faster than that for obtaining a foreign business licence.

In Thailand, crypto-assets are primarily regulated under the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018), which establishes the overarching framework for the offering, trading and custodial activities of digital assets. The Decree classifies digital tokens as regulated investment instruments and places all digital-asset activities under the supervision of the SEC.

Entities engaging in digital-asset businesses such as exchanges, brokers, dealers, fund managers, advisers and custodians are required to obtain a licence from the Ministry of Finance, with ongoing supervision by the SEC. Public offerings of digital tokens (ICO Projects) are also subject to prior SEC approval and must comply with disclosure, anti-money-laundering (AML), cybersecurity and consumer-protection requirements comparable to those in the traditional securities market.

Since 2022, the BOT has prohibited the use of digital assets as a means of payment, citing concerns over financial stability and consumer protection. Nonetheless, the BOT continues to promote innovation through its Enhanced Regulatory Sandbox, which allows financial institutions and fintech companies to test blockchain-based payment models such as programmable payments and Thai-baht-referenced stablecoins (also referred to as e-Money Tokens). These pilot programmes aim to explore distributed-ledger technology within a controlled regulatory environment, without altering the legal-tender status of the Thai Baht.

The BOT and SEC are also working together to develop a supervisory framework for stablecoins and tokenised payment instruments, focusing on adequate reserve backing, segregation of customer funds, and transparent governance. This co-operation reflects a gradual shift from a purely prohibitive stance towards controlled experimentation and principle-based regulation.

Overall, Thailand’s regulatory approach treats crypto-assets as a separate asset class, allowing investment, innovation and fund-management activities under licence, while maintaining strict safeguards around payments, AML compliance and systemic-risk management.

The following are the primary regulators for financial services in Thailand.

• Ministry of Finance – one of the key primary regulators for financial service businesses operating in Thailand. The Ministry of Finance is authorised under the relevant financial services regulations to consider and grant the required approvals, permits and licences to financial business sectors, under the supervision of each delegated authority (eg, the BOT, SEC or OIC).
• Department of Business Development – Ministry of Commerce, another significant public authority responsible for considering and granting the required authorisation with respect to foreign business licences or foreign business certificates, as well as to monitoring regulatory compliance and enforcing penalties under the FBA. The DBD is also the competent authority for considering and registering the incorporation of companies and other types of legal entities in Thailand.
• Bank of Thailand (BOT) – established as the central bank under the Bank of Thailand Act B.E. 2485 to regulate and monitor financial institutions and other related financial services. The BOT is authorised to prescribe regulations, procedures and guidelines with respect to financial institutions and other financial businesses and to maintain the stability of the financial services, financial institutions and the national payment system.
• Securities and Exchange Commission of Thailand (SEC) – an independent authority established under the SEC Act to regulate and oversee securities businesses and other policies relating to the development of the capital markets in Thailand for both primary and secondary markets as well as the maintenance of commercial standards for the capital markets. The SEC is empowered to enact regulations for securities-related transactions and to take legal action against business operators or any individuals acting in violation of the SEC Act and its subordinate regulations. Such actions may include administrative, criminal or civil proceedings imposed by the SEC as deemed appropriate.
• Stock Exchange of Thailand (SET) – established under the SEC Act to regulate and monitor the primary and secondary capital markets where securities are issued, listed and traded. While the regulations and notifications issued by the SET generally align with the requirements set out by the SEC, the SET’s regulations serve as an additional safeguard governing securities transactions, ensuring proper market operation and frontline surveillance of listed issuers’ compliance.
• Office of Insurance Commission of Thailand (OIC) – established under the Insurance Commission Act B.E. 2550 and empowered to prescribe regulations, procedures, conditions and guidelines for insurance businesses. The OIC also provides recommendations in the approval process and in the issuance of insurance-related regulations or any other matters as assigned by the Ministry of Finance.
• Anti-Money Laundering Office (AMLO) – established under the AMLO Act as the regulatory body responsible for prescribing regulations, procedures and guidelines, and for monitoring compliance with the AMLO Act.

In Thailand, laws and regulations, including rules, notifications and guidelines announced by the ministries and/or regulatory agencies, are published in the Government Gazette and may also be found on the official websites of the respective regulatory agencies.

Each regulated financial service is subject to applicable rules, notifications or regulations issued by the relevant regulatory agencies, and any failure to comply with such rules may expose the business operator to criminal penalties or administrative orders. In certain cases, the regulator also has the discretion to issue and establish guidelines, policies or recommendations for the operation of financial services businesses. These announcements may be treated as soft law, as business operators are encouraged and monitored by the relevant regulator for compliance. Examples include: Market Conduct Framework, guidelines for cashflow risk management, and other operational aspects of financial institutions.

Thailand began implementing the Basel III framework through BOT notifications since January 2013, applying it to all commercial banks, including locally incorporated banks and branches of foreign banks. The BOT issued notifications introducing Basel III requirements to strengthen capital adequacy, supervision and transparency across the banking system. The framework retains the three-pillar structure of Basel III:

• minimum capital requirements and capital buffers (Pillar 1);
• supervisory review process (Pillar 2); and
• market discipline (Pillar 3).

Under Pillar 1, banks must maintain minimum capital levels for Common Equity Tier 1 (CET1), Tier 1, and total capital, together with a capital conservation buffer and a countercyclical buffer as determined by the BOT. Pillar 2 requires banks to conduct an Internal Capital Adequacy Assessment Process (ICAAP) that considers all material risks, while the BOT reviews these assessments and may impose additional capital requirements if necessary. Pillar 3 promotes market discipline by requiring banks to publicly disclose capital adequacy, risk exposures and risk-management practices.

Thailand has not yet implemented a T+1 settlement cycle. The Thai capital market currently operates on a T+2 settlement cycle, under which securities traded on the Stock Exchange of Thailand (SET), the Market for Alternative Investment (MAI), and the Thai Bond Market Association are settled on the second business day following the trade date (T+2). Thailand continues to study and assess the potential impact of transitioning to a shorter settlement cycle. Thai regulators and market participants are closely monitoring global developments, recognising that the shift to T+1 represents both a challenge and an opportunity for Thailand to enhance operational efficiency and reduce settlement risk. However, no official timeline or commitment has yet been announced for the adoption of T+1 in Thailand.

While there are no existing stand-alone ESG principles applicable to all financial services regulations in Thailand, ESG concepts have been integrated into certain policies and guidelines issued or adopted by key regulators. The main guidelines and regulations with respect to ESG financing are summarised below.

ESG Bonds

ESG-related bonds have been incorporated into the SEC’s regulations with respect to the issuance and offering of bonds, such as green bonds, social bonds, sustainability bonds (ESG Bonds) and sustainability-linked bonds (SLBs).

ESG Bonds are specific types of debt instruments, the proceeds of which are used exclusively for environmental, social and sustainable projects. Apart from the specific use-of-proceeds requirement, the same rules applicable to conventional bond issuance also apply to ESG Bonds.

However, SLBs are subject to special conditions and additional reporting requirements on the part of the bond issuer. For the SLBs, it is not necessary for the loan proceeds to be used for green, social or sustainable projects. Instead, the issuer is obliged to set key performance indicators, sustainability performance targets (SPTs), and sustainability performance obligations. The fixed interest rate may be adjusted, either decreased or increased, depending on the progress made towards achieving the SPTs. In certain cases, the bond issuer may commit to purchase carbon credit offsets in an agreed minimum purchase amount on the due date of each loan instalment if it fails to achieve the SPTs. Additionally, SLB issuers are required to disclose and submit progress reports on their sustainability performance and, in the case of a public offering and high-net-worth offering, appoint an external third-party reviewer to evaluate and provide an opinion on the SLB framework.

Thailand Taxonomy

Although Thailand’s Taxonomy is voluntary and non-binding, it serves as a guideline for financial institutions and other private-sector participants in classifying business activities according to sustainability objectives, allows stakeholders to assess investment risks and encourages sustainable projects and investments. The Thailand Taxonomy was initially developed by the Working Group on Sustainable Finance led by the BOT and the SEC, with participation from the Fiscal Policy Office, the OIC and the SET, to promote sustainable projects and improve the green financing landscape within Thailand.

In the context of financial services, businesses engaged in projects labelled as “green” may receive more favourable financing terms and conditions, potentially including more favourable interest rates due to the lower financing risk exposure of the lenders.

BOT’s Policy on Environmental Risk Governance of Financial Institutions (the “BOT Eco Policy”)

The BOT has issued a supervisory policy to integrate environmental and climate risks into the governance, strategy, risk management and disclosures of financial institutions to support Thailand’s transition to a low‑carbon, sustainable economy. Under this guideline, the BOT encourages boards of directors of financial institutions to establish specific strategies, risk assessments and key policies on environmental and climate change matters. Senior management is also expected to implement these policies, allocate resources, monitor progress, and report to the board of directors on a regular basis.

Key aspects of the BOT Eco Policy are to align financial institutions’ investments policies under the supervision of the BOT with market standards or international principles (ie, UN Principles for Responsible Banking and Equator Principles) and ensure transparent and sustainable disclosure in accordance with acceptable or international standards, such as the Task Force on Climate-Related Financial Disclosure (TCFD) and the International Sustainability Standards Board (ISSB). Although the BOT Eco Policy is not legally binding, the BOT has been monitoring financial institutions’ policies since 2024 with a view to strengthening governance standards at the management level.

The BOT has taken a leading role in setting formal expectations for the responsible use of artificial intelligence (AI) within the Thai financial sector. On 12 September 2025, the BOT issued its Policy Framework on AI System Risk Management, the first official guidance specifically addressing AI governance, risk management and customer protection for regulated financial institutions and payment service providers.

The Policy applies to all institutions supervised under the FIBA and the Payment Services Act (the “PSA Act”), covering both internally developed and third-party AI systems. It requires regulated entities to adopt comprehensive risk-management practices across the entire AI life cycle, from data collection and model development to deployment and monitoring, and to align their internal frameworks with internationally recognised “responsible-AI” principles such as Fairness, Ethics, Accountability and Transparency (FEAT).

Key regulatory expectations include:

• establishing clear board and senior management accountability for AI-related decisions;
• maintaining AI governance frameworks integrated with existing IT-risk and data-governance policies;
• ensuring data quality, security and explainability of AI models, and protecting systems against cyber threats such as data poisoning or adversarial attacks;
• implementing “human-in-the-loop” or “human-over-the-loop” oversight for high-impact use cases (eg, credit scoring, account opening); and
• providing customer transparency, including notification when AI is used and the option to interact with human staff.

The BOT’s initiative marks Thailand’s first comprehensive AI policy for the financial industry. It reflects the regulator’s broader objective of enabling innovation while safeguarding reliability, fairness and consumer trust. Further sector-specific guidance and supervisory expectations are expected as AI adoption across financial services continues to accelerate.

Thailand is currently in a transitional stage towards regulating stablecoins and digital currencies, adopting a cautiously open yet supervisory approach led by the BOT. While the use of privately issued tokens as a medium of payment remains restricted, the BOT has begun to explore how Thai-baht-referenced stablecoins could operate safely within the national payment ecosystem.

In 2024, the BOT launched its Enhanced Regulatory Sandbox to allow licensed financial institutions, fintech companies and technology providers to test the use of programmable payments and e-money tokens, effectively stablecoins referencing the Thai baht. These initiatives aim to study the technological and legal implications of distributed-ledger-based settlement and to assess how such tokens might improve efficiency, transparency and interoperability in financial transactions.

Under the BOT’s policy direction, any Thai-baht-referenced stablecoin will be treated as an e-money-type payment instrument, not as a currency, and must therefore comply with prudential, consumer-protection and anti-money-laundering requirements equivalent to those applicable to payment service providers. The framework emphasises three core principles:

• full reserve backing, ensuring redemption at par with the Thai baht;
• segregation of client funds, to protect users in case of insolvency; and
• transparency and auditability, including disclosure of reserves and operational governance.

The BOT is also collaborating with the SEC to co-ordinate regulatory boundaries where stablecoins or tokenised instruments may overlap with digital-asset activities under the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018). This co-operation signals Thailand’s move towards principle-based oversight, focusing on risk and function rather than form.

In parallel, the BOT continues its separate research on a potential Retail Central Bank Digital Currency (CBDC), although no official timeline for implementation has been announced. The current policy trajectory suggests that Thailand will prioritise public–private interoperability through sandbox-tested stablecoin models before introducing any state-issued digital currency.

Overall, Thailand’s stance on stablecoins and digital Baht developments reflects a measured progression: enabling innovation through controlled experimentation, safeguarding monetary stability, and laying the regulatory foundation for future digital-currency adoption.

In general, the BOT has established a Market Conduct Framework which outlines how financial institutions will conduct their businesses and treat their customers. The standards applicable to each customer group vary depending on the level of sensitivity and vulnerability of that group. The Market Conduct Framework requires financial institutions to embed principles of fairness, transparency and responsibility in their governance and operations. Financial institutions must tailor products and services to match customers’ financial capacity and level of understanding, particularly for vulnerable groups such as the elderly, low-income individuals, and persons with limited financial literacy or communication abilities. Institutions are required to adopt certain practices to ensure that customers are treated fairly throughout the service life cycle, including:

• responsible product design;
• transparent sales practices;
• fair remuneration structures; and
• effective complaint-handling mechanisms.

In addition to the general framework, the BOT has from time to time introduced targeted relief programmes to directly support financially vulnerable customers affected by economic hardship based on the prevailing financial conditions at the time. The most recent initiative, launched in 2025, provides debt relief for retail borrowers and small businesses struggling with repayment due to income disruption. The programme offers several flexible restructuring options that allow debtors to retain collateral, settle smaller debts or gradually rehabilitate their credit profile under favourable terms. The initiative emphasises temporary, conditional support to avoid moral hazard while enabling long-term financial rehabilitation for individuals with viable repayment capacity.

While Thailand does not yet have a single, comprehensive law specifically governing shadow banking, the BOT and the SEC have developed several proposals and supervisory frameworks to expand regulatory oversight to non-bank credit intermediation and financial services providers currently operating outside the traditional banking system. The BOT recognises the growing role of non-bank entities in consumer finance, leasing, hire-purchase and digital lending, and has taken steps to strengthen regulation to address financial stability and consumer protection concerns.

For instance, earlier this year, the BOT announced new regulations to supervise non-bank vehicle hire-purchase and leasing companies, bringing more than 3,000 operators under its oversight. These entities will be required to notify the BOT and comply with prudential and conduct requirements. Rather than introducing a single shadow banking law, Thailand is adopting an activity-based approach, progressively extending supervision to specific non-bank sectors performing bank-like functions to prevent regulatory arbitrage and maintain a level playing field between banks and non-banks.

Financial Institutions, Non-Banks, FX Businesses, and Payment Systems and Services

Applications for financial institution business licences and specific approvals for the licensed financial institutions to operate each financial service, non-banks engaging in restricted financing transactions, foreign exchange activities, and payment systems and services under the supervision of the BOT must be submitted to the BOT in accordance with the forms prescribed by the relevant BOT regulations. The application and all supporting documents will be reviewed and forwarded to the Ministry of Finance for further approval, together with the BOT’s supporting opinion.

For foreign exchange transactions, applicants must submit their applications to commercial banks authorised by the BOT. Such applications will then be submitted to the BOT through the Exchange Control Approval and Reporting System.

Securities Companies

Applications for securities business licences must be submitted to the SEC together with other supporting documents. The Ministry of Finance, upon the recommendation of the SEC, will then consider the applicant’s qualifications and, once approved, issue the relevant securities business licences.

Insurance Companies

Applications for insurance business licences and all supporting documents must be submitted to the OIC. Upon verifying the completeness of the application and documents, the OIC will forward the application to the Ministry of Finance for official authorisation, together with its opinion regarding the approval for the insurance business.

Financial Institutions

In general, the timeline for obtaining a relevant financial institution business licence and specific approval for licensed financial institutions to operate each financial service from the BOT may vary. The process typically takes approximately 30 days (for a foreign financial institution establishing a representative office) to around seven months (for the establishment of a financial institution). In practice, the period may take longer if the BOT requires further information or clarification as supporting documents. There is no licensing fee prescribed by the Ministry of Finance and the BOT with respect to such approvals.

Non-Banks

Upon receiving the application for the relevant licences and all supporting documents, the BOT will consider and forward its opinion to the Ministry of Finance for approval within 60 days. This timeline may be extended by a further 60 to 120 days if it appears that major shareholders or senior management of the applicant or its parent company may fall within the restricted qualifications:

• being suspected of fraud;
• having committed fraud, or any unfair or dishonest act against consumers; or
• being suspected of discrimination, conflict of interest or any bad faith behaviour.

There is no licensing fee for such approvals.

Securities Companies

The timeline for obtaining a securities business licence is approximately five months. The application fee is THB30,000 per application, applicable to all types of securities business licences. However, there may be an additional licence fee ranging from THB30,000 to THB20 million, depending on the category of business licence and special conditions prescribed in the SEC’s notification relating to the fees for securities business licences. Securities companies granted a securities business licence must also pay the SEC an annual fee in the amount prescribed by the SEC for each type of securities business, provided that any securities company operating for less than one year will be required to pay the fixed rate fee only on a monthly pro rata basis, calculated based on the number of months of actual operation.

FX Business

The timeline for obtaining approval to operate a foreign exchange business as an authorised institution is approximately 60 business days, with no fee applicable.

For foreign exchange transactions, the approval process may take approximately 30 days from the date on which the BOT receives all supporting evidence and information, with no fee applicable.

Payment Systems and Services

Where business operators request and apply for approval or registration with respect to payment systems or payment services, the BOT will review the application and forward it to the Minister within 60 business days of receiving the completed application. For any application for registration of payment services, the BOT will consider the application and issue the registration certificate within 30 business days of receiving the completed application.

Currently, the BOT has issued a notification prescribing approval and registration fees with respect to payment systems and services at a rate of 0%, meaning that there are no fees applicable at present. However, the PSA Act allows the BOT to prescribe any application or licence fees at a later time.

Insurance Companies

There is no definite timeline for obtaining a licence to operate an insurance business in Thailand. The authorisation fees with respect to the insurance-related businesses prescribed under the relevant notifications vary, ranging from THB300 to BHT1 million, including (but not limited to) applications for the following:

• life insurance business licences;
• non-life insurance business licences;
• life insurance agent licences;
• non-life insurance agent licences;
• life insurance broker licences; and
• non-life insurance broker licences.

Life insurance and non-life insurance business operators must also pay an annual fee in the amount of THB20,000 for every subsequent year after the issuance of their respective insurance business licences.

Financial services law in Thailand generally prescribes the permitted and restricted qualifications of directors as a first-level screening mechanism. These restricted qualifications may include, but are not limited to, the following. A director must:

• not be insolvent or bankrupt, a person of unsound mind, or an incompetent or quasi-incompetent person under the law;
• not have been sentenced to imprisonment by a final judgment for an offence relating to forgery or falsification, theft, snatching, extortion, blackmail, robber, fraud or embezzlement;
• not have been subject to a judgment or court order forfeiting assets of the state; and
• not have been finally convicted of an offence under financial services laws, payment systems laws, or money laundering under the AML Act.

For certain financial services businesses, the relevant regulations also require that directors must not have previously been removed from the position of director or executive of any financial services firm, or have served as a director, manager or executive of a financial services firm whose licence has been revoked. Some financial services regulators also prescribe qualifications or restricted qualifications for the relevant major shareholders.

For financial institutions, the BOT has introduced approval requirements beyond the general qualifications to ensure proper management of financial services firms by issuing a notification setting out fit-and-proper criteria and an approval regime for the appointment of senior individuals of financial institutions and their related entities (ie, parent companies or subsidiaries within a group of companies). Appointments of senior individuals subject to BOT approval cover directors, managers, authorised persons and advisers of financial institutions. The fit-and-proper standards are structured around three key pillars:

• honesty, integrity and reputation;
• competence, capability and experience; and
• financial soundness, such as the absence of material payment delinquencies or non-performing financial obligations.

One of Thailand’s financial services reforms will be the Draft Financial Business Hub Act. This Act aims to establish Thailand as a regional financial centre by creating a One-Stop Authority (OSA), a dedicated supervisory body responsible for licensing, monitoring and promoting designated and targeted financial businesses (such as banking, digital assets and insurance), within specific zones. The Act will also introduce mechanisms for foreign participation, tax incentives, streamlined approval procedures, and employment flexibility for foreign professionals, while regulators are developing safeguards to prevent regulatory arbitrage and ensure fair competition with domestic institutions.