Thai customers can use PayPal until end of year as BOT extends transfer deadline
The Bank of Thailand (BOT) has extended the deadline for PayPal to transfer its service to PayPal (Thailand) until the end of 2022 to prevent disruptions for existing customers.
“We also asked PayPal to complete its identity verification system or KYC [Know Your Customer] as soon as possible, as well as remedy customers who have been affected by the company’s suspension of services,” BOT assistant governor Sirithida Phanomwan na Ayutthaya said.
BOT held a meeting with PayPal (Thailand) and the Anti-Money Laundering Office (AMLO) on Wednesday to address concerns of online sellers who said PayPal’s new policy meant they must re-register as juristic persons to use its international money transfer service.
The policy is scheduled to take effect on March 7.
In early February, PayPal had also announced that it would postpone new registration for both users and sellers until further notice as it seeks to comply with Thai regulations.
“PayPal’s representatives said it planned to suspend some services for Thai customers from March 7 as it needs to transfer the customers to PayPal (Thailand) and adjust its identity verification system to comply with Thai laws,” said Sirithida. “The BOT and AMLO therefore agreed to extend the deadline and allow PayPal to provide services to Thai customers until the end of the year. Meanwhile, the company must finish developing its identity verification system under the bank's supervision in order to protect Thai customers.”
BOT also said PayPal (Thailand)’s announcement 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.
“With the deadline extended, existing Thai customers of PayPal can now continue to use its international money transfer service without any interruption or having to register as a juristic person, and they need to verify their identity once PayPal (Thailand) finishes setting up its KYC system,” added Sirithida.
BOT said it will follow up on PayPal (Thailand)’s operation closely and make sure that customers who have been affected in the past months are properly remedied.