Bangkok, Friday 9 August 2019 - SEC encourages intermediaries to join the National Digital ID or NDID as members in order to increase the assurance in the identification and authentication for onboarding investors, reduce the risks related to falsification of identities and reduce redundant identification processes for opening investment accounts in the capital market.
Before providing investment service in the
capital market, intermediaries, such as securities companies and asset
management companies, must know their investors or clients’ detailed
information by conducting the process of Know Your Client (KYC) so that they
can provide appropriate services. Nowadays, an electronic KYC or e-KYC has been introduced to make KYC processes faster and become
more efficient.
SEC understands the benefits of encouraging the
intermediaries to do e-KYC. Not only e-KYC is effective methods, but it also supports clients that have changed
themselves to digital lifestyles. In addition, the government has launched NDID project that
will be the country’s central infrastructure for service providers in both public
and private sector in compliance with ease
of doing business, which also reduces redundant identification processes. As a result, trading account opening process in
the capital market will be swift, effective, and reliable, also investors will
be facilitated. In July 2019,
SEC, therefore, issued letters to every type of intermediaries to request cooperation and support
from them considering to participate in the NDID project. The project has been well-received, many intermediaries
have expressed their interest and many of them, which are 106 companies or 81 percent of the total intermediaries, already applied
for this project. At the present time, intermediaries in
the capital market have gradually started to use the e-KYC processes.
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