On 01 November 2024, the National Bank of Cambodia (“NBC”) and the Ministry of Commerce (“MOC”) issued a Notification on The Opening of Khmer Riel Currency Bank Accounts for All Registered Businesses in the Kingdom of Cambodia (“Notification”). This Notification aims to encourage the use of Khmer Riel currency, and support financial stability aligned with the Royal Government’s policy frameworks.

Key Implications:

  • For Banks and Financial Institutions: The NBC and MOC request that banks and financial institutions facilitate the opening of local currency bank accounts (KHR) for all registered businesses in Cambodia.
  • For Registered Businesses in Cambodia: are encouraged to open KHR bank accounts, to promote the use of local currency in transactions, supporting economic benefits including price stability, reduced dollarization costs, export support, and the preservation of international reserves.

Comment: 

Presently, as part of initial business registration requirements, there is no strict obligation for newly registered legal entities to open KHR bank accounts. However, such accounts are mandatory for registered legal entities seeking VAT refunds, as the General Department of Taxation processes refunds exclusively through KHR bank accounts.

 

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