News and developments
Thai Cabinet Passes New Draft Resolution Easing Restrictions on Cross-Border Transactions and Commercial Activities
The amendments, among other things, includes:
- Allowing permitted persons (business operators) to accept foreign currency via sources other than bank notes (i.e. debit cards, credit cards issued by foreign banks, electronic transfers etc.).
- Previously, only duly licensed operators were permitted to operate or engage in foreign currency exchange activities. This new regulation now paves the way, however, for a registration regime in addition to that for licensing, which greatly simplifies and streamlines the process by which people can start up these types of businesses.
- Allowing FOREX licenses to be used/operated at different locations. Before the introduction of these new rules, for example, a license would be required for each foreign currency exchange branch that were to be opened. Now, a single license may cover multiple branches under the same licensed entity. Nevertheless, the entity permitted for foreign exchange activities through the registration regime shall be subject to proper official registration being given to (and approval duly secured from) the relevant competent authorities for the extra branches.
- Allowing foreign currency derived from export-generated business proceeds to be used by exporters for other transactions in Thailand (such as settling account payables). Before, only THB was allowed for such purposes. The amendments ushered in by this ministerial regulation allow for foreign currencies to be used for the same purpose in Thailand.