Thailand: Bond Investor Registration (BIR) Scheme via Clearstream Banking - update
Note: This announcement, originally published on 10 November 2021, has been further updated with the BOT approval number.
Effective
4 January 2022
the Thai central bank, Bank of Thailand (BOT), requires investors of Thai issued debt securities to settle these securities per Ultimate Beneficial Owner (UBO) via segregated securities accounts (SSAs) opened in the market. Such UBOs will also have to do a one-time registration of their details, which include but is not limited to the Legal Entity Identifier (LEI), with the BOT before settlement can take place. This Bond Investor Registration (BIR) scheme is being introduced by the BOT, in collaboration with the Securities and Exchange Commission (SEC), in order to enhance the domestic settlement infrastructure, provide greater transparency and facilitate the surveillance of the onshore financial market.
Clearstream Banking1 is pleased to announce that the BOT has granted it approval (No. ThorPorTor.ForKorNgor(31) 621 /2564) to maintain its existing omnibus account in the market in return for a one-time registration of the details of all UBOs holding Thai issued debt securities within Clearstream Banking (by 4 January 2022) and an enhanced daily disclosure reporting model of UBOs holding such securities (expected to start 1 May 2022).
This formal approval from BOT will enable Clearstream Banking to continue supporting its customers who wish to settle and safekeep Thai debt securities via its indirect link to the Thailand Securities Depository. The same suite of services will continue to be made available, including internal settlement and tri-party repo.
Impact on customers
Customers are requested to take note of the following actions in order to continue holding Thai debt securities via Clearstream Banking.
By no later than 15 December 2021, all customers who currently hold or who intend to hold Thai debt securities must complete the one-time registration process with the BOT, as well as ensure that their accounts in Clearstream are set up per UBO, to facilitate the enhanced daily reporting model. Further details are described in the table below.
Action | Start date | Due date |
1. Obtain LEI per UBO2. | Immediately | By 15 December latest |
2. Request Clearstream Banking to open an additional sub-account per UBO in Clearstream Banking’s books. This will be in addition to the customer’s existing main Clearstream Banking account. Note a: The requirement for additional Clearstream Banking sub-accounts per UBO is to distinguish segregated third party assets from proprietary assets on the Thai link and facilitate the automated daily disclosure reporting of UBOs holding Thai issued debt securities (expected to start 1 May 2022). Note b: Additional Clearstream sub-accounts are not required for those customers that are holding Thai debt securities as prop assets. Please refer to the CBL Customer Handbook (Section 2.2 - “Opening additional CBL accounts”) for further details on how to open the additional account. Account opening requests for UBOs that are individuals will not be accepted. There will be no requirement to open segregated cash accounts per UBO. Customers may continue to use Clearstream Banking’s existing omnibus cash account in Thailand. | Upon obtaining the LEI | |
3. Request Clearstream Banking to submit and register the UBO details3 with the BOT. Note: These details are to be submitted to the attention of the SG Account Team via SWIFT MT599free-format message4. | Upon obtaining the LEI and opening the additional sub-account per UBO in Clearstream Banking’s books. | |
4. If additional Clearstream Banking sub-accounts have been opened per UBO, customers need to instruct Clearstream Banking to migrate (that is, internal free of payment transfer) any Thai debt securities held on behalf of the UBOs from their existing omnibus account to the new Clearstream Banking account(s) opened per UBO in Clearstream Banking’s books. All Thai debt securities should be transferred to their respective UBO sub-accounts within the Clearstream Banking platform no later than 4 January 2022. (Please refer to the CBL Customer Handbook for further details on how to instruct internal transfers). | Upon opening of the additional Clearstream Banking sub-account per UBO. |
As per BOT, from 4 January 2022 onwards, all dealers and local custodians in Thailand will be obliged to trade with or provide bond settlement services to only those counterparties or UBOs that have already been registered in the BOT BIR scheme. If the UBO customers held under Clearstream Banking have not been registered before 4 January 2022, domestic trades will be flagged under a transaction category that is required to be reported to the regulators, including the BOT and the SEC. In this case scenario, customers may share BOT’s approval (No. ThorPorTor.ForKorNgor(31) 621 /2564) with their bond dealers for further checking with the BOT. Any UBOs attempting to perform such trades will be requested to register via the above-mentioned process within 10 days as stipulated in the BIR regulations.
We will publish further details regarding the enhanced disclosure reporting model in due course.
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.
2. List of UBO investor types as defined by BOT:
UBO investor type code | UBO investor types | Description | Whose LEI to register |
468001 | Collective investment fund | Includes unit trust funds, mutual funds, exchange traded funds (ETFs) | Fund level. For example: ABC Unit Trust Fund |
468003 | Central Bank | Includes central bank, reserve bank or monetary authority. | Entity level. For example: Bank of Thailand Note: The LEI of the central bank, reserve bank or monetary authority is required if it invests via a private fund. |
468004 | Government | Includes sovereign funds, federal funds, state funds, municipal funds, government-related organisations/councils, international organisations | Fund level or entity level. For example: ABC Sovereign Fund or Thailand Clearing House |
468006 | Non-financial corporation | Includes associations, non-banking private sector corporations, foundations, endowment funds, limited partnerships, limited companies, public limited companies, holding companies | Corporate entity level. Note: The LEI of the corporate entity is required if it invests via a private fund. |
468007 | Insurance company | Includes life/general insurance companies, insurance funds, social insurance organisations | Insurance company level. Note: The LEI of the insurance company is required if it invests via a private fund. |
468009 | Pension Funds | Includes retirement funds, employee provident funds, social security funds, pension schemes, government pension funds | Fund level. For example: ABC Pension Fund |
468011 | Banking institutions / financial intermediaries (own position only) | Banking Institutions include commercial banks, investment banks, development banks, multilateral development banks, private banks and overseas branches of Thai banks. Financial Intermediaries include brokers, dealers, securities services, finance companies, credit unions, financial cooperatives, credit corporations, property financiers, mortgage corporations, leasing and factoring companies, securities depositories, custodian banks and trustees. | Entity level. For example: ABC Investment Bank |
468010 | Individual | A person | Not applicable. |
3. UBO details required:
UBO details | Description |
UBO Name | This should be the same as the name used in the LEI |
Investor Type | UBO Investor Type code as per the table in footnote 2 above. For example: 468011 |
LEI | The UBO LEI |
CBL Account Number | This should be the account opened for the UBO in Clearstream’s books. |
4. Bond Investor Registration SWIFT MT599 free-format template:
Customers are requested to send Clearstream Banking a SWIFT MT599 free-format message in order for their UBO details to be registered with the BOT, as per the BIR requirements.
QUOTE
Attn: Clearstream Account Admin Singapore
Please take this MT599 as our request for Clearstream Banking to register the following UBOs with the Bank of Thailand.
UBO Name:
Investor Type:
LEI:
CBL Account Number:
UNQUOTE