Draft Financial Business Hub Act Aiming to Promote Thailand as a Financial Center is Open for Public Consultation

Government efforts to drive the Thai financial sector forward

The draft Financial Business Hub Act proposed by Thailand´s Cabinet including the Ministry of Finance, the Board of Investment Office, the Securities and Exchange Commission Office, the Bank of Thailand and more is currently open for public consultation on the website of the House of Representatives until the 24th of May 2025. The Act introduces a comprehensive regulatory framework that aims to attract international financial institutions, expand the country’s financial sector capabilities, and lower entry barriers for targeted financial businesses.

The key sectors included in this act include:

-Commercial banking

-Payment services

-Securities and derivatives trading

-Digital Asset Businesses

-Insurance and reinsurance brokerage

There is a potential for further expansion as defined by the new regulatory committee set by the Draft Act.

If implemented into law, the Act would establish the Committee for the Supervision and Promotion of Financial Centers which would be chaired by the Minister of Finance and supported by a new One-Stop Authority (OSA). This committee would be responsible for licensing, policy direction, and oversight, while also granting significant regulatory exemptions to attract international entities in the industry.

Licensed operators would benefit from:

• Exemptions from the Foreign Business Act, key financial industry laws, and the Condominium Act, enabling full foreign ownership and property rights.

• Streamlined immigration and work permit procedures for foreign professionals.

• Classification as non-residents for currency exchange regulations to facilitate cross-border transactions.

• Regulatory flexibility, with the committee empowered to grant further exemptions as market needs evolve.

While the Draft Act offers substantial incentives and operational flexibility for licensed operators, it also maintains strict compliance requirements, including anti-money laundering (AML), know-your-customer (KYC), and risk management obligations, with mandatory reporting for large transactions. BizWings Thailand will continue to monitor the developments of this draft act, which still needs to go through all the legislative stages in the House of Representatives and the Senate before implementation.