The draft Financial Hub bill does not confer absolute or exclusive authority over the supervision of financial transactions.
However, if financial transactions under this law affect the country's economic stability or financial system, regulators such as the Bank of Thailand, the Securities and Exchange Commission (SEC), and the Office of the Insurance Commission (OIC) have the authority to intervene and oversee transactions, said Pornchai Thiraveja, director-general of the Fiscal Policy Office.
He said the authority of the One Stop Authority (OSA), as outlined in the draft Act, was designed with input from the central bank, SEC and OIC, in collaboration with the Interior Ministry, the Office of the Council of State, the Anti-Money Laundering Office (Amlo), the Board of Investment, the Revenue Department, the Department of Consular Affairs, the Department of Business Development, and the Office of Justice Affairs.
Private sector organisations were also consulted, such as the Thai Bankers' Association, the Association of State Financial Institutions, the Association of International Banks, the Thai Capital Market Business Council, the Stock Exchange of Thailand, the Thai Life Assurance Association, the Thai General Insurance Association, the Thai E-Payment Trade Association and the Digit Asset Operators Trade Association.
These groups considered various issues carefully, ensuring the impact on existing financial service providers and financial system stability was thoroughly assessed, said Mr Pornchai.
"The OSA committee is authorised to oversee only businesses licensed under the Financial Hub bill that provide services to non-residents in Thailand. Current regulatory agencies will still retain their authority to oversee licensed financial businesses under existing laws," he said.
"The committee includes executives from the central bank, SEC and OIC as board members, providing opinions and recommendations to ensure the supervision of financial hub businesses is aligned with the oversight of existing financial businesses."
Mr Pornchai said if concerns arise regarding the stability of the financial system, the current regulatory agencies can consult with the OSA committee to establish guidelines or take specific actions concerning financial hub businesses.
Regarding money laundering concerns with the new Financial Hub bill, he said businesses overseen by the hub must comply with anti-money laundering and counter-terrorism financing (AML/CFT) regulations, as is the case with existing financial businesses.
If the Financial Hub bill is enacted, Amlo will require businesses within the hub to report under the Anti-Money Laundering Act, ensuring compliance with AML/CFT measures in line with international standards.
As for digital currency, Mr Pornchai said the draft bill does not address the issuance of digital currency, instead designating digital asset businesses as a target sector, with the OSA committee responsible for determining the types and scope of business activities and establishing appropriate regulatory criteria before considering approval for such businesses.
Businesses operating in the financial hub must comply with foreign exchange control laws and measures to prevent baht speculation. Their status would be non-resident financial institutions, he said.
If an event may impact financial system stability, the draft grants authority to current regulatory agencies to play an active role in oversight by consulting with the OSA committee, as follows:
1. Establishing additional rules, methods or conditions for businesses in the financial hub to comply with to address potential threats to the country's economic and financial stability, or to protect the public interest.
2. Prohibiting businesses from conducting certain transactions or revoking business licences if such transactions could significantly affect the country's economic or financial stability, or harm the public interest.
