5.1.1 Accepting deposits of money by issuing passbook or deposit. receipt

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1 Unofficial Translation This translation is for the convenience of those unfamiliar with the Thai language Please refer to Thai text for the official version Notification of the Bank of Thailand No. FPG. 10/2555 Re: Regulations on Accepting Deposits of Money or Accepting Money from the Public for Credit Foncier Companies 1. Rationale According to the Financial Institution Business Act B.E (2008), crerdit foncier companies may undertake business of accepting deposits of money or accepting money from the public subject to withdrawal at the end of a specified period, the Bank of Thailand therefore deem appropriate to stipulate regulations to permit credit foncier companies to accept deposits by issuing passbooks or deposit receipts, and to borrow from the public by issuing promissory notes subject to withdrawal at the end of a specified period no less than 1 year, with a proper internal control system. Afterwards, the Securities and Exchange Commission classifies bills issued by financial institutions, including bills issued by credit foncier companies, which are bills of exchange and promissory notes, to mobilize funds from the public as securities. In addition, the Securities and Exchange Commission stipulates that the minimum amount of face value is 10 million baht, the time to maturity of bills does not exceed 270 days and amends regulations concerning supervision on issuance of and offering debt instruments. For the abovementioned reasons, the Bank of Thailand therefore amends the notification to revoke the permission previously granted to credit foncier companies to issue promissory notes in order to borrow from the public, since they are no longer classified as bills under the notifications of the Securities and Exchange Commission on issuance of and offering debt instruments, as well as the notifications of the Capital Market Committee on seeking and granting permission to offer newly issued debt instruments. The Bank of Thailand also clarifies and updates a number of issues of this notification.

2 2 2. Statutory Power By virtue of Section 39, Section 41 and Section 46 of the Financial Institution Business Act B.E (2008) which contains certain provisions relating to the restriction of personal rights and freedoms, which, under section 29, together with section 31, section 33, section 36, section 39, section 41 and section 43 of the Constitution of the Kingdom of Thailand, can be done by virtue of the provisions of law, the Bank of Thailand hereby issues prescription regarding acceptance of deposit or money from the public which credit foncier companies shall comply with. 3. Scope of Application This notification shall apply to all credit foncier companies according to the law on financial institution business. 4. Repealed Notifications and Circular Letters The Bank of Thailand Notification No. FPG. 28/2551 Re: Regulation on Accepting Deposits of Money or Accepint Money from the Public for Credit Foncier Company dated 3 August 2008 shall be repealed. 5. Content In accepting deposits of money or accepting money from the public, credit foncier companies shall comply with the following regulations: 5.1 Accepting Deposits of Money or Accepting Money from the Public Credit foncier companies shall undertake the business of accepting deposits of money or accepting money from the public subject to withdrawal at the end of a specified period as follows: receipt Accepting deposits of money by issuing passbook or deposit In accepting deposits of money, finance companies shall comply with regulation and practices pertaining to deposit subject to withdrawal at the end of a specified period prescribed for credit foncier companies (Attachment) In borrowing money from the public, credit foncier companies may do so by means of issuing borrowing document or other debt instruments which are not bills of exchange or promissory notes and shall be subject to withdrawal at the end of a specified period no less than 1 year without paying discount.

3 charges Compliance with practice on interests, discounts and service Credit foncier companies shall comply with regulations on interest, discounts and service charges related to deposits and borrowed money as stipulated in the Notification of Bank of Thailand Re: Regulation on practices regarding interests, discounts, service charges and penalties for credit foncier companies and the amendments thereafter. 5.3 Internal Control System Credit foncier companies shall have in place the internal control system for procedures concerning transactions with regard to accepting deposits of money and accepting money from the public which is considerd to be appropriate and up to the widely acceptable standard. Internal control rules for the aforementioned transactions shall be set on basis of completeness, accuracy, timeliness and ready to be examined by the Bank of Thailand. Copies of the rules shall be submitted to the Bank of Thailand on request. 5.4 Consumer Protection With the purpose of consumer protection, credit foncier companies shall explain important information so that customers are aware of and understand clearly before accepting deposits of money or accepting money. Examples of such information are conditions on principal repayment, interest or discounted interest, service charges and other expenses; conditions on interest payment and/or withdrawal of deposit; tax beneits; details of principal and interest protected by the Deposit Protection Agency according to each financial product that credit foncier companies offer to customers. 6. Effective Date This Notification shall come into force as from 2 nd July 2012 Announced on 21 st June 2012 (Mr. Krirk Vanikkul) Deputy Governor, Financial Institutions Stability for Governor

4 -1/1- Attachment Regulation and Practice pertaining to Deposit Accounts subject to Withdrawal at the End of a Specified Period Prescribed for Finance Company Regulation on deposit accounts Credit foncier companies shall accept deposits of money subject to withdrawal at the end of a specified period and shall comply with regulations as follows: 1.1 In accepting deposits of money, credit foncier companies shall issue passbooks or deposit receipts subject to withdrawal at the end of a specified period no less than 1 year, with the minimum amount of 1,000 baht. The withdrawals of such deposits prior to the date of the first year are not permitted and credit foncier companies shall not make repayment prior to the due date of the first year. 1.2 Credit foncier companies shall not accept deposits of money or provide withdrawal service at places outside their offices and out of the office hours unless permission is granted by the Bank of Thailand. 2 Internal control system Internal control system concerning accepting deposits of money by issuing passbooks or deposit receipts 2.1 Credit foncier companies shall stipulate rules and procedure for storing and requisition of important documents including unused blank forms such as passbooks or deposit receipts, account opening request forms, transparent papers, etc. Control registration shall be updated and contains details of date and number received from a printing house, date and number requisitioned, and outstanding balance. 2.2 Credit foncier companies shall appoint officers to be in charge of requisition of important document and blank forms (as mentioned in 2.1). Whenever a requisition is made, an officer in charge and the other officer who is responsible for storing shall co-sign their names as evidence of the requisition. 2.3 Credit foncier companies shall check the number of important document and unused blank forms and reconcile with the outstanding balance shown in the storing records (as mentioned in 2.1) at least once a month. 2.4 Credit foncier companies shall assign officers to be entitled to make or approve transactions such as opening accounts, closing accounts, accepting deposits for or withdrawal from dormant accounts, etc. In addition, the amount limits that officers

5 -1/2- at each level are entitled to serve customers with acceptance of deposits, withdrawal shall be stipulated. 2.5 Credit foncier companies shall specify the maximum amount of cash in hand which tellers are allowed to hold, and measures to monitor requisitions and dispatch cash to cashiers. 2.6 Credit foncier companies shall arrange examinations of, separate and carefully monitor transactions of dormant accounts. 2.7 Credit foncier companies shall conduct examinations on completeness and accuracy of transactions both before and after amendment, transaction approvals by authorized persons and storage of preliminary document as reference in the future. 2.8 Credit foncier companies shall carry out special reports for monitoring and examining by the executives. Examples are high-amount transactions, significant transactions which approval by an authorized person is required, amendments of nonnumerical transactions, etc. 2.9 For account opening, credit foncier companies shall comply with following process: (1) Verify official documents issued by the government which show depositors name and address. Also store copies of such document and signature specimen cards in a secure place at the companies. (2) Supervise requisitions of passbooks or deposit receipts to be run in order according to the number of the passbooks or deposit documents which are printed in advance by the printing house. In case that any passbooks or deposit receipts are canceled, the wording Canceled shall be stamped on all pages of those passbooks or on the front side of those deposit receipts. The canceled passbooks and deposit receipts shall be kept for monitoring and examination in the future. (3) Check completeness and accuracy of account opening request forms and ensure that account opening was done carefully; for example, account opening by using the account numbers of closed and unclosed accounts is prohibited, etc. (4) Verify that an authorized person has signed his/her name to approve account opening In accepting deposits of money, withdrawal, and account closing, credit foncier companies shall comply with following process:

6 -1/3- (1) Check completeness and accuracy of information and document of transactions regarding deposit, withdrawal, transfer of money and account closing, as well as approval by authorized persons. (2) Verify official documents issued by the government which show name and address of persons who withdraw money and who make a request for account closing. (3) Verify genuineness of a signature of a person who opened the account when money is withdrawn or the account is closed. (4) Check cash in hand of tellers and reconcile with teller total at least once at the end of each business day. (5) Prove teller total on number of deposit transactions and total amount of deposit by reconciling with the deposit transaction summary form at the end of each business day In repaying deposits subject to withdrawal at the end of a specified period, credit foncier companies shall do so in form of cheques with a crossing Account Payee Only. Alternatively, they shall transfer money to depositors accounts via BATHNET service which is provided by the Bank of Thailand

BOT Notification No (8 September 2017)-check

BOT Notification No (8 September 2017)-check Unofficial Translation This translation is for the convenience of those unfamiliar with the Thai language Please refer to Thai text for the official version -------------------------------------- Notification