Foreign exchange controls
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There are no restrictions on the remittance or repatriation of capital or profits into or out of Cambodia, so long as the transfers are conducted through registered financial institutions (Banks).
Riel (KHR) is the official currency of Cambodia, however, most transactions are conducted and denominated in the US dollar. Remittances are subject to applicable withholding taxes.
Restriction on the foreign exchange
The “Law on the Foreign Exchange” of September 1997 stipulates that “there shall be no restriction on foreign exchange operations” through authorised banks (Article 5) but the authorised banks shall report to the National Bank of Cambodia the amount of each transfer equalling or exceeding 10,000 US dollars (Article 17). Residents are allowed to hold foreign currencies freely (Article 7).
There shall be no restrictions on foreign exchange operations through book-entry including purchases and sales of foreign exchange on the foreign exchange market, transfers, all kinds of international settlements, and capital flows in foreign or domestic currency, between Cambodia and the rest of the world or between residents and non-residents. However, such operations shall be undertaken solely through authorized intermediaries.
Only banks permanently established in the Kingdom of Cambodia shall be considered as authorised intermediaries.
Authorized intermediaries shall be required, under conditions established by regulations, to provide the Central Bank on a regular basis with periodic statements, by type of transfers or settlement and of outflows and inflows of capital carried out between the Kingdom of Cambodia and the rest of the world, according to the time set by the Central Bank.
Any export of cash in foreign currency by authorised intermediaries shall be subject to prior declaration to the Central Bank.
The manual money changers who have fixed or moving counter may exercise their exchange transaction with the prior authorisation of the Central Bank.
Residents may hold foreign currencies freely, both in form and location of such holdings inside the country. Nevertheless, in case of a foreign exchange crisis, the Central Bank may issue regulations to be implemented for a maximum period of 3 months, suspending temporally the enforcement of this provision. In case of having to prolong the scheme, the Central Bank together with the Ministry of Economy and Finance shall submit a request to the Head of the Royal Government for approval.
Transfers relating to investment or liquidation of investment shall be made through authorised intermediaries as stated in Article 5 of the present law.
Subsequently, the authorised intermediaries shall report to the Central Bank the amount of each transfer equalling or exceeding one hundred thousand US dollars (USD 100,000).
Always check with your bank in Cambodia prior to any transfers to ensure the correct documentation is completed and compliant with the relevant laws.