Page 240 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

4. Law on Direct Sale and Direct Marketing payment systems and operators of payment service
businesses pursuant to laws on payment systems.
The Direct Sale and Direct Marketing Act B.E. 2545 In addition, these two acts apply to practitioners of
(including amendments) (“Direct Sale and Direct certain professions such as those working in the field
Marketing Act”) aims to govern business operators of e-Money cards and are not financial institutions
engaged in direct sale and direct marketing for under the Finance Ministry’s Announcement on
increased consumer protection. The Direct Sale and Credit Card Businesses or the law on financial-institution
Direct Marketing Act defines “direct marketing” supervision or those working in the field of e-payment
as marketing goods or services directly to consumers pursuant to the law governing e-payment services.
at a distance with aim to sell goods or services to
each consumer. This definition covers the direct Judging by the nature of its businesses, the Group is
presentation of goods to consumers via media an operator of payment service businesses that is
such as internet or TV too. The electronic distribution under the law on payment systems and the supervision of
of goods via the Group’s websites or internet as the Bank of Thailand. As a result, the Group is considered
a result is considered a direct sale business. The Group a financial institution with the duty to comply with
therefore has the duty to register itself as an operator requirements related to The Anti-Money Laundering
of direct sale business with the Office of the Consumer Act of B.E. 2542 and the Counter-Terrorism and
Protection Board to comply with the law. For registration, Proliferation of Weapon of Mass Destruction Financing
direct-sale business operator must submit documents Act B.E. 2559 (including amendments). It is also under
to Office of the Consumer Protection Board for review. the supervision of the Anti-Money Laundering Office,
Only qualified operators shall be registered in line with which has the power and duty to formulate guidelines
legal requirements. For example, direct marketing on how to enforce, supervise, audit, and evaluate
business operators must not sell goods that are not compliance with the laws. Under the laws, the Group
allowed for direct sale such as medicines, medical has the duty to report transactions based on criteria
appliances, liquor, and fertilizer. Also, they must have and guidelines prescribed. For example, all financial
never had their direct-sale licenses revoked in the past institutions have to report a transaction of over
five years since the submission of the latest license Bt100,000 to the Anti-Money Laundering Office and
request. Direct marketing business operators must also shall require all customers to identify themselves prior
comply with applicable rules: for example, they must to conducting any transaction, unless that customer has
neither force consumers nor unreasonably tout goods previously done so before, or require occasional customers
under a brand name. Agreements made must contain to identify themselves prior to any of the following
minimum details required by laws. Also, the operator of transactions: (1) a payment-service transaction involving
a direct sale business must submit their operation more than Bt50,000; and (2) a transfer of e-Money or
reports to the Registrar. an electronic transfer of money involving more than
Bt50,000. In addition, the Group must compare
5. Laws on Anti-Money Laundering and customer names against Thailand’s list of high-risk
Counter-Terrorism and Proliferation of persons and the Civil Court-designated high risk persons
Weapon of Mass Destruction Financing and the UN Sanction List in compliance with laws.

The Anti-Money Laundering Act of B.E.2542 and 6. Law on Public Health

the Counter-Terrorism and Proliferation of Weapon of
Mass Destruction Financing Act B.E. 2559 (including The Public Health Act B.E. 2535 (including amendments)
amendments) aims to prevent ill-gotten or illegally- (“Public Health Act”) aims to take care of people’s health,
acquired gains from being laundered to ensure with the Public Health Committee as the executor of the act.
such money or assets are no longer used for crimes, This law governs key issues related to the hygiene of people
terrorist acts, or terrorism support. These laws affect such as the establishments of markets, food shops, or
and apply to financial institutes, including legal entities food storages, waste management, hygienic conditions
whose business operations are related to financial of buildings, nuisances to neighbors, and unhealthy
activities covered by the laws namely the operators business operations. Different activities covered by
of payment system businesses pursuant to laws on the law are subject to different control measures as follows:

240 Annual Report 2021 (Form 56-1 One-Report)