BOT ask PayPal to extend international cash transfer service period for online sellers
The Bank of Thailand (BOT) on Wednesday asked PayPal (Thailand) to extend its international money transfer service period for small online sellers until its identity verification system is completed.
BOT’s request came after a meeting of the House of Representatives’ finance, financial institutions and financial market commission. The meeting was also attended by the Anti-Money Laundering Office (AMLO) and small online entrepreneurs.
The meeting was called after the online sellers submitted a letter to commission spokeswoman Watanya Wongopasi, claiming they were affected by PayPal’s new policy that individuals must register as juristic persons to use its international money transfer service. The policy is scheduled to take effect on March 7.
Teeraphat Charoensuk, representing the online sellers, made it clear that he would suffer from PayPal’s new policy. He also claimed that he faced difficulties registering as a juristic person, citing increasing business operation expenses and age restrictions.
BOT said PayPal’s move to verify identities must be done under the bank's supervision in order to protect Thai customers, adding that the policy is also in line with AMLO laws.
The bank said an announcement by PayPal (Thailand) asking users to register as juristic persons in order to verify their identities under the new policy is a misunderstanding as the central bank and AMLO want both individuals and juristic persons to verify themselves.
Meanwhile, Watanya said the commission had concluded that individuals can verify their identity by using their ID cards or passports. She added that business registration with the Commerce Ministry is enough to meet AMLO conditions if PayPal wants to verify business operations.
“Hence, individuals do not have to register as juristic persons, which would result in high operation costs,” she pointed out.
Watanya said PayPal’s identity verification system is expected to be completed in six months. The company must verify customers’ identities within three months after the system is ready.
She added that BOT had discussed with PayPal the issue of compensating online sellers for causing a misunderstanding.
