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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:
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payment
instruments or securities denominated in foreign currency;
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raw
gold, raw precious metals, uncut precious stones.
Article 3
The following shall be considered as residents:
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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;
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legal entities
incorporated under local law and branches of legal entities
incorporated under foreign law that are established in the Kingdom
of Cambodia;
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any Cambodian civil
servants on foreign assignments, regardless of the length of their
stay.
Article 4
The following shall be considered as nonresidents:
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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);
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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);
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legal entities,
incorporated under local law, established abroad and overseas
branches of legal entities incorporated under local law;
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foreign civil
servants on diplomatic or similar assignments in the Kingdom of
Cambodia.
Chapter 2
Bank Intermediation
Article 5
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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.
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Only banks
permanently established in the Kingdom of Cambodia shall be
considered as authorized intermediaries.
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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.
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Any export of cash
in foreign currency by authorized intermediaries shall be subject to
prior declaration to the Central Bank.
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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
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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
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