The Thai Cabinet has approved Financial Business Hub Bill, a legislative initiative aimed at positioning Thailand as a key financial hub in the global economy. The Bill establishes a primary regulatory authority responsible for policy formulation and introduces a framework designed to attract international financial businesses while ensuring employment opportunities for Thai nationals.
The Financial Business Hub Bill seeks to create an internationally competitive regulatory environment for financial services, fostering industry growth and economic expansion. The law provides a streamlined mechanism for licensing and overseeing financial businesses operating within designated zones in Thailand. Additionally, it mandates the development of infrastructure and human capital to enhance the country’s financial ecosystem.
A key feature of the Bill is the establishment of the Office of the Financial Business Hub Regulatory and Promotion Commission, which will act as a One-Stop Authority (OSA). This body is tasked with policy development, licensing, regulatory oversight, and providing incentives to businesses operating within the hub. The OSA board will formulate strategies to attract financial institutions, determine licensing frameworks, and oversee compliance with regulatory standards.
The draft legislation comprises 9 chapters and 96 sections, exempting seven existing laws to facilitate a specialized regulatory environment. The key provisions include:
1. Eligibility and Business Scope:
- Eligible businesses must be legal entities established under Thai law or foreign branches operating in Thailand.
- Permissible businesses include commercial banking, payment services, securities trading, derivatives, digital asset operations, insurance, reinsurance brokerage, and other financial or supporting services.
- Businesses must operate within designated financial hub zones and adhere to a specified employment ratio of Thai nationals.
- Services may be restricted to non-residents, except under specified conditions.
2. Licensing and Regulatory Framework:
- Businesses must submit licensing applications to the OSA, which will oversee approvals, renewals, and revocations.
- The OSA board will determine the types and scope of business licenses, establish compliance criteria, and set regulatory measures aligned with international standards.
3. Investment Incentives:
- Businesses operating within the financial hub will benefit from tax and non-tax incentives.
- Tax incentives will be designed to enhance competitiveness on a global scale.
- Non-tax benefits may include exemptions from the Foreign Business Act, streamlined visa and work permit processes for foreign professionals, and special ownership rights for business-related properties.
The Financial Business Hub Bill will mark a significant step in Thailand’s economic strategy to attract global financial firms and investment. By offering a transparent, internationally recognized regulatory framework, the law aims to solidify Thailand’s role as a regional financial powerhouse while fostering local workforce development and economic growth.
The implementation of this legislation is expected to drive innovation, enhance regulatory efficiency, and establish Thailand as a premier destination for global financial services.
The draft of financial hub law has been approved by the Thai Cabinet_Bangkok Global Law