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LAWS
Investment, Trade Regulation, Law
on Taxation,
Labor Law, Law on insurance, Land and construction,
Law on foreign exchange foreign, Law on marriage & family, Trademark Law
Law on foreign exchange
CHAPTER 1 |
CHAPTER 2 |
CHAPTER 3 |
CHAPTER 4 |
CHAPTER 5 |
CHAPTER 6 |
CHAPTER 7
KINGDOM
OF CAMBODIA
Nation Religion King
PREAH
REACH KRAM
CS/RKM/0897/03
We
Preahbath Samdech Preah Norodom Sihanouk Reach Harivong
Uphatosucheat Visothipong Akamohaborasratanak Nikarodom
Thammikmohareacheathireach Boromaneat Boromabopit Preah Chau Krong
Kampuchea Thipdey
-
Referring
to the 1993 Constitution of the Kingdom of Cambodia;
-
Referring
to Reach Kret His Royal Highness Norodom Sihanouk Varmann,
King of the Kingdom of Cambodia of November 1, 1993 on the
formation of the Royal Government of Cambodia;
-
Referring
to Kram 02/NS/94 of July 20, 1994 promulgating the Law on the
Organization and Functioning of the Council of Ministers;
-
Referring
to Reach Kret No. NS/RKT/1094/90 of October 31, 1994 on the
Reorganization of the Composition of the Royal Government of
Cambodia;
-
Referring
to Reach Kret No. CS/RKT/0897/147 of August 7, 1997 on the
Reorganization of the Composition of the Royal Government of
Cambodia;
-
Referring
to Kram No. NS/RKM/0196/27 of January 26, 1996 promulgating
the Law on the Organization and Functioning of the National
Bank of Cambodia;
-
Referring
to Reach Kret of September 3, 1993 on the appointment of H.E.
Thor Peng Leath as the Governor of the National Bank of
Cambodia;
-
Referring
to the Financial Law of December 28, 1993;
Pursuant to the request by the First Prime Minister and the
Second Prime Minister and the Governor of the National Bank of
Cambodia.
HEREBY
PROMULGATE
The Law on Foreign Exchange as ratified by the National Assembly on
August 5, 1997 during the eight session of the first legislature and
whose entire meaning are as follow:
Law on Foreign Exchange
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Chapter
1
General Provisions
Article 1
Any foreign exchange operations and, in general, any operations
carried out between residents and nonresidents are subject to the
present law when they relate to:
Article 2
For the enforcement of this law, the following shall be considered
as foreign exchange:
-
payment
instruments or securities denominated in foreign currency;
-
raw gold,
raw precious metals, uncut precious stones.
Article 3
The following shall be considered as residents:
-
individuals,
regardless of their nationality, who have had their main
professional activity or their main residence in the Kingdom
of Cambodia for a period of and over one hundred and eighty
two days (182 days), with the exception of foreign civil
servants on diplomatic or similar assignments;
-
legal
entities incorporated under local law and branches of legal
entities incorporated under foreign law that are established
in the Kingdom of Cambodia;
-
any
Cambodian civil servants on foreign assignments, regardless of
the length of their stay.
Article 4
The following shall be considered as nonresidents:
-
individuals
of Cambodian nationality, who have had their main professional
activity or their main residence abroad for a period of and
over one hundred and eighty two days (82 days);
-
foreign
individuals, who have had their main professional activity or
their main residence in the Kingdom of Cambodia for less than
one hundred and eighty two days (182 days);
-
legal
entities, incorporated under local law, established abroad and
overseas branches of legal entities incorporated under local
law;
-
foreign
civil servants on diplomatic or similar assignments in the
Kingdom of Cambodia.
Chapter 2
Bank Intermediation
Article 5
-
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 nonresidents. However, such operations
shall be undertaken solely through authorized intermediaries.
-
Only banks
permanently established in the Kingdom of Cambodia shall be
considered as authorized 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 authorized 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 authorization of the
Central Bank.
Article 6
In case of
foreign exchange crisis, the Central Bank may issue regulations to
be implemented for a maximum period of 3 months, imposing certain
temporary restrictions on the activity of authorized intermediaries,
particularly on the transactions stated in Article 5 of the present
law, or their foreign exchange position, or any loans in domestic
currency extended to nonresidents. 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.
Article 7
Residents may hold foreign currencies freely, both in form and
location of such holdings inside the country. Nevertheless, in case
of 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 provisions. 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.
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Chapter 3
Current Operations
Article 8
Exporters or importers of goods and services shall make payments for
their commercial transactions with the rest of the world through
authorized intermediaries.
Article 9
Authorized intermediaries may be required by the Central Bank to
submit proof of payment for imports by banker's order in support of
their applications to purchase foreign exchange, and later be also
required to provide various administrative evidence confirming the
entry of goods into the country.
Article 10
Since the collection is made, the proceeds from export of goods or
services shall be credited to the exporter's account with the
domiciled bank in accordance with Article 8 of the present law.
Article 11
Counterpart funds in domestic currency from the local marketing of
products imported on the basis of external borrowings or grants must
be credited to the National Treasury's account with the Central
Bank, in accordance with procedures to be defined by mutual
agreement between the National Treasury and the Central Bank.
Article 12
The import or export of raw gold, uncut precious stones or other raw
precious metals shall be free, in accordance with point 1 of Article
5 of the present law, however, shall be subject to prior declaration
to the Central Bank if the value of each transaction equals or
exceeds ten thousand US dollars (USD 10,000).
Article 13
The export or import of the means of payment equaling or exceeding
ten thousand US dollars (USD 10,000) in foreign exchange or the
equivalent amount in domestic currency by a traveler shall be
declared to the customs officers at border crossings of the Kingdom
of Cambodia.
The
export of cash in excess of the limit set by the regulation of the
Central Bank shall be subject to prior examination by the Central
Bank.
The
Customs House shall transmit a copy of each such declaration to the
Central Bank on a monthly basis.
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Chapter 4
Investments Capital Flows
Article 14
The capital flows related to foreign investment in the Kingdom of
Cambodia shall be governed by the Investment Law of the Kingdom of
Cambodia.
Article 15
In so far as liquidation of foreign investment takes place in
accordance with the provisions of the Investment Law of the Kingdom
of Cambodia, proceeds from said liquidation may be transferred
freely.
Article 16
Investment made abroad by resident for an amount equaling or
exceeding one hundred thousand US dollars (USD 100,000) shall be
subject to prior declaration to the Central Bank.
Article 17
Transfers relating to investment or liquidation of investment shall
be made through authorized intermediaries as stated in Article 5 of
the present law.
Subsequently, the authorized intermediaries shall report to the
Central Bank the amount of each transfer equaling or exceeding one
hundred thousand US dollars (USD 100,000).
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Chapter 5
Other Capital Flows
Article 18
Loans and borrowings, including trade credits may be freely
contracted between residents and nonresidents, provided that the
loans disbursements and repayments thereof are made through
authorized intermediary.
Article 19
The capital flows resulted from those operations (settlements of
import and export of goods or services, transfers, investment, loans
and borrowings) shall include in the bank periodic statements in
accordance with the provisions as stated in point 3 of Article 5 of
the present law. Such capital flows shall be classified by category
of each operation and the professional secrecy shall be respected.
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Chapter 6
Penalties
Article 20
Authorized intermediaries shall be responsible, with caution, for
ensuring compliance with the provisions set forth in the present law
or in regulations of the Central Bank concerning the operations
undertaken by themselves or placed under their control.
Any authorized intermediary who fails to comply with the provisions
of the above paragraph shall be punished in accordance with the
existing laws.
Article 21
Any person who violates points 3, 4, or 5 of Article 5 or violates
Article 17 of the present law shall be liable for imprisonment from
one year to five years and for a fine from one million Riels
(1,000,000) to ten million Riels (10,000,000 ), or any one of these
two punishments.
Article 22
Any person who violates Article 11 or paragraph 1 of Article 13 of
the present law shall be liable for a fine of ten per cent (10%) of
the amount involved.
Article 23
Any person who violates Article 12 or Article 16 of the present law
shall be liable for a fine of twenty per cent (20%) of the amount
involved.
Article 24
Any person who violates paragraph 2 of Article 13 of the present law
shall be liable for a fine from one million Riels (1,000,000) to ten
million Riels (10.000.000). Equipments used in the perpetration of
the violation shall be confiscated and retained as state
property.
Article 25
Any person who violates point 1 of Article 5 or Article 8 or Article
18 of the present law shall be liable for a fine of fifty per cent
(50%) of the amount involved.
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Chapter 7
Final Provisions
Article 26
All provisions contrary to this law are hereby repealed.
Made
in Phnom Penh, 22 August 1997
In the name and on behalf of the King
Acting Chief of State
Signature
CHEA SIM
Submitted
for the signature of the king
|
First
Prime Minister
Signature
Ung Huot
|
Second
Prime Minister
Signature
Hun Sen |
Has informed
to
First Prime Minister and Samdech Second Prime Minister
The Governor of the National Bank of Cambodia
Signature
Thor Peng Leath
No. 192 C.L.
For copy
Phnom Penh, September 1, 1997
General Secretary of the Royal Government
Nady Tan |
