SEC has regulated regarding the method of Know Your Client (“KYC”) for securities and derivatives business operators  through the use of principle-based regulations due to the fact that business operators have different in sizes, target audience, and number of clients. Therefore, it depends on the business operators to find the most appropriate method to perform e-KYC as long as they follow the objectives and principles as notified.

Now, SEC is seeking public comments on the guideline of adopting technology in e-KYC, in order for the business operators to have guidelines and confidence in their method, as well as to increase the trustworthiness in the identification and authentication process for onboarding customers  that could boost the standard of performing e-KYC in the capital market. The draft guidelines would provide examples of e-KYC in accordance to the principles as notified. However, business operators can also use other methods, provided that they have the same quality and effectiveness as the one suggested by SEC.

The process of KYC is an initial procedure that every business operators in the capital market need to perform in order to onboard customers in accordance with the regulations of SEC, for assurance the clients identity, providing suitable clients services and preventing any money laundering or any financial supports towards terrorist groups, which is also in accordance with anti-money laundering laws. Currently, this e-KYC technology will provide advantages for making identification, authentication and other processes becomes faster and more convenient.

SEC has published relevant documents regarding public hearing at SEC website: www.sec.or.th/hearing. Any interested parties can submit their comments and concerns via the website, via fax 0-2263-9509, or via e-mail benja@sec.or.th until 30 November 2018.

-----------------------------

Note: public hearing document https://capital.sec.or.th/webapp/phs/upload/phs1540194562hearing_43_2561.pdf