Get to know the “treasury center”

        A “treasury center” is another option for Thai companies with international business networks or multinational corporations (Multinational Corporation: MNC), enabling them to manage income, expenses, and other foreign currency transactions.

        The term “treasury center” refers to a Thai-registered legal entity authorized by the Minister of Finance to conduct foreign currency management business for Thai and international conglomerates. The treasury center may not, however, conduct financial transactions.

A treasury center has four scopes of business, as follows:

1. Purchasing obligations or billing documents for international goods or services in foreign currencies from group companies (Re-Invoicing), or representing the group of companies in receiving money according to billing documents for goods or services or payment of obligations for international goods or services in foreign currency (Agent);
2. Netting;
3. Purchase, sale, or exchange of foreign currencies and management of exchange rate risk;
4. Management of liquidity.

A company that establishes a treasury center will reap numerous benefits, including the following:

1. Reduce transaction costs and improve efficiency in affiliated companies' foreign currency management to boost competitiveness;
2. Benefits if you meet the criteria for establishing an international headquarters (International Headquarter: IHQ) in Thailand, according to government policies;
3. Help foreigners with production bases in Thailand and Thai companies with foreign investments consolidate money management centers in Thailand by developing Thai personnel with specific expertise in foreign currency management.

Qualifications of an applicant for operating a treasury center must be as follows:

1. Being a registered company in Thailand;
2. Be in the same business network as the group;
3. Manage foreign currency for the group of companies according to the following conditions:

• • There are three or more group companies located in Thailand, Vietnam, or neighboring countries, or
  • There are two or more group companies in Thailand, as well as two or more overseas affiliates in two or more countries (the treasury center does not need to register such overseas affiliates under foreign currency management of the treasury center);

4. Companies in the group have a considerable amount of international trade and services.