Principles
Realizing the importance of its strong financial sector as a tool to compete, Thailand’s financial institutions team up to elevate the service up to international standard and strengthen country’s financial system to its best steady form. The Government has established the National Corporate Governance Committee (CG) agreeing that Thailand should be a part of International Report on the Observance of Standards and Codes or ROSCs in 12 areas. One of those 12 areas includes the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT).
Paying serious attention to the AML/CFT, many international organizations teamed up to appoint the following Best Practice for all members.
- Vienna Convention (1988): drugs and narcotic controls cooperation
- Financial Action Task Force (FATF): 40+9 measures for battling money laundering
- Customer Due Diligence for Banks by Bank for International Settlements (BIS)
- Principle on Client Identification and Beneficial Ownership for the Securities Industry
by International Organization of Securities Commission (IOSCO) - Guidance Paper on Anti-Money Laundering and Combating the Financing of Terrorism
by International Association of Insurance Supervisors (IAIS)
The aforementioned Best Practice, which is an international procedure, advises all financial institutions to be prudence with their customers’ personal information or Know Your Customer /Customer Due Diligence: KYC/CDD code to protect the bank from being used as the money laundering mediator or supporter of the finance for terrorism.
The Thai Banker’s Association thus cooperates with its members and the Anti-Money Laundering Office (AMLO) to establish anti-money laundering and financing terrorism measures as the entry-level standards, one of those includes Know Your Customer /Customer Due Diligence: KYC/CDD code which follows international standard and is approved by the International Monetary Fund (IMF) and the World Bank as the guideline for each bank to establish their own individual measures.
Krung Thai Bank Public Company Limited realizes the significance and impact of the damages of those frauds to the financial cost and the bank’s reputation if the bank is found in the terrorism or money laundering schemes. And to protect from falling into the victim of the aforementioned international frauds, we establish preventive code of conduct or the AML/CFT Policy that, with its six major sections going along with the international laws, policies and standards. Also, we adjust Know Your Customer /Customer Due Diligence: KYC/CDD measures to comply with international banking standards as well.
