Strengthening Cross-Border Financial Services: APB and BAAC Launch Money Transfer Initiative
In a significant development aimed at enhancing financial connectivity between Thailand and Laos, the Agricultural Promotion Bank (APB) of Laos and the Bank for Agriculture and Agricultural Cooperatives (BAAC) of Thailand have launched a collaborative money transfer service. This initiative is designed to assist Lao nationals working in Thailand by providing a secure, efficient, and cost-effective means to remit funds back home.
Memorandum of Understanding Signed
The partnership was formalized through a Memorandum of Understanding (MoU) signed in Vientiane. The agreement was executed by Philavanh Sophabmixay, Managing Director of APB, and Chatchai Sirilai, President of BAAC. The signing ceremony was attended by Phongsaysack Inthalath, Deputy Minister of Labour and Social Welfare of Laos; Khankeo Lamaningao, Deputy Governor of the Bank of the Lao PDR; and Morakot Sriswasdi, Thai Ambassador to Laos, who all expressed strong support for the collaboration.
Phased Implementation of the Service
The money transfer service is being rolled out in two phases:
Phase One: Lao nationals residing or working in Thailand can remit funds to Laos through service counters at all BAAC branches nationwide.
Phase Two: A mobile banking application will be introduced, enabling users in Thailand to transfer money directly to recipient accounts or set up automatic transfers to Laos, eliminating the need to visit bank branches.
Government Support and Objectives
This initiative aligns with the goals of the Ministry of Labour and Social Welfare of Laos to ensure that Lao migrant workers in Thailand have access to legal and secure financial services. Additionally, it allows the government to monitor the foreign currency earnings of Lao nationals working abroad, contributing to national economic policies.
Future Prospects
Both APB and BAAC are optimistic about the potential for further collaboration beyond this money transfer service. They plan to leverage their respective strengths, supported by government backing, to expand financial services and strengthen bilateral relations in the years ahead.
This partnership not only facilitates financial transactions for migrant workers but also exemplifies the growing trend of cross-border financial cooperation in the Southeast Asian region.
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