WSG Article: Cambodia: New Transaction Amounts - Know Your Customer Procedures for Financial Institutions and Payment Service Providers

Cambodia: New Transaction Amounts - Know Your Customer Procedures for Financial Institutions and Payment Service Providers

April, 2021 - Segolene Leffy

Pursuant to the Prakas on Launching the Use Rules and Procedures of Bakong System dated 26 June 2020 and the Prakas on Management of Payment Service Providers dated 14 June 2017, the National Bank of Cambodia (“NBC”) has determined transaction amounts and KYC procedures for financial institutions and payment service providers (“PSP”) in Cambodia. Customers/users may conveniently and safely register online or via mobile applications with these entities to make transactions without having to register in person.

The NBC has recently introduced a single payment platform, Bakong, that connects most financial institutions and PSPs and allows customers/users to make fund transfers, payments and settlement transactions on a real-time basis. Through Bakong, customers can have wider, more efficient and convenient access to finance which will also be beneficial to financial institutions and PSPs in Cambodia.

In accordance with the different customer risk levels, customer identification procedures will be determined by the four following transaction types:

Transactions between Bakong Accounts;
Transactions between Bakong Accounts and Bank Accounts/E-Wallet Accounts;
Transactions between E-Wallet Accounts and E-Wallet Accounts/Bank Accounts; and
Transactions between Bank Accounts and Bank Accounts via Bakong (Backbone).

For transactions falling under items 1 – 3 above, customers are classified into three categories: basic customers, partial KYC and full KYC.

Basic Customers: Customers can register online or via a mobile app and only need to provide a phone number. The transaction limit is KHR 2 million (approx. USD 500) per day.
Partial KYC: Customers can register online or via a mobile app and only need to provide (i) a phone number; (ii) a selfie picture and (iii) a photo of valid identification card or passport. The transaction limit is KHR 12 million (approx. USD 3,000) per day.
Full KYC: Customers can register online or via mobile app or at the financial institution and must be verified in accordance with the KYC procedure of the financial institution and must provide (i) a phone number; (ii) a selfie picture and (iii) a photo of valid identification card or passport. The transaction limit is KHR 40 million (equivalent to USD 10,000) per day.

For transactions falling under item 4 above, customers are considered as full KYC customers and the transaction limit is KHR 200 million (equivalent to USD 50,000) per day.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

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