15-07-2025
Cabinet preps Financial Hub Bill draft
The cabinet is preparing to propose the draft Financial Hub Bill for parliamentary deliberation in the near future.
According to Deputy Finance Minister Paopoom Rojanasakul, the Council of State has already completed its review of the draft law. The next step will be to present it to parliament for consideration in its first reading.
"This draft law will establish an ecosystem that aligns with the needs of global financial companies," said Mr Paopoom.
The proposed Financial Hub Act aims to elevate Thailand into a regional financial centre by overhauling the licensing and regulatory framework under the Financial Hub initiative, making it comprehensive and business-friendly.
The draft law is designed to attract investment by streamlining operations and establishing a central agency to set policies that promote Thailand as a financial hub.
It also lays out strategies to develop the financial industry ecosystem, including workforce development and infrastructure improvements to meet the demands of leading global financial firms.
The draft law will define target businesses within the Financial Hub and establish the Office of the Regulatory and Promotion Committee for the Financial Business Hub as a One-Stop Authority (OSA).
It will define qualifications for business operators, licensing procedures, investor incentives and regulatory frameworks that are efficient and aligned with international standards.
The draft law approved by the cabinet contains nine chapters and 94 sections, including General Provisions, which specifies the effective date of the Financial Hub Act and relevant definitions.
Chapter 1 – Regulatory and Promotion Committee for the Financial Business Hub, which outlines the structure and authority of the committee responsible for comprehensive oversight of the Financial Hub, including setting business guidelines, issuing licences, inspecting operations and revoking licences.
Chapter 2 – Office of the Committee, which establishes the OSA to provide one-stop services and facilitate businesses in licensing and receiving incentives.
Chapter 3 – The director, who specifies qualifications and the appointment process for the executive managing the Office.
Chapter 4 – Licensing of Target Businesses, defining types and scopes of businesses eligible for licences, and the characteristics of legal entities seeking to operate within the Financial Hub.
Chapter 5 – Promotion of Incentives, outlining the benefits and incentives available to businesses established under the Financial Hub framework.
Chapter 6 – Supervision of Businesses under Promotion, establishing regulatory standards for businesses within the Financial Hub, covering financial institutions, securities firms and insurance businesses, aligned with current regulatory practices.
Chapter 7 – Officials, granting officials the authority to inspect the operations of businesses within the hub.
Chapters 8 and 9 – Administrative Sanctions and Criminal Penalties, setting forth penalties for non-compliance with the Act's rules and conditions.
