Cambodia and Malaysia Sign MOU to Enhance Cooperation in Financial Innovation and Payments
In its 27 February 2024 press release, Bank Negara Malaysia announced that Cambodia and Malaysia have signed a Memorandum of Understanding (“MOU“) to enhance cooperation of these two countries in financial innovation and payment. This includes, among others, the linking of domestic payments in both countries to enable cross-border QR payments. The MOU will also facilitate cooperative oversight for safer and more efficient transactions.
The MOU supports the ASEAN Regional Payment Connectivity initiative and the G20 Roadmap for cross-border payments. This in turn will boost cross-border trade and tourism between the countries.
It is expected that up to five million merchants, including small businesses, from both countries will benefit from this cooperation.
Strengthening the Management of Gaming Operations
On 19 February 2024, the Commercial Gambling Management Commission of Cambodia (“CGMC“) issued Guideline No. 001 on Strengthening the Management of Luck-Based Game Operations in the Kingdom of Cambodia (“Guideline“) to ensure the improvement of the management of gaming operations, and to promote social order and morality.
Under the Guideline, CGMC instructs that all holders of a licence, branch licence, or permit on service location of luck-based games (“Approval“) shall:
- Properly comply with the rulebook on conditions of the issuance of luck-based game licences;
- Operate the business at the location specified in the Approval only;
- Upon receipt of the Approval, place proper signboard(s) at the respective business location;
- Display the original Approval at the respective business’s registered address;
- Only operate game types and equipment permitted by CGMC;
- Display the original certificate of the registration of game types and equipment for the luck-based game and its appendix at the respective business’s registered address, and display a copy of such certificate certified by the General Secretariat of CGMC at the luck-based game branch location and/or service location; and
- Monitor and manage the luck-based game in compliance with the Law on Management of Commercial Gaming.
Incentives for Voluntary Rectification of Tax Returns
The Ministry of Economy and Finance has issued Prakas No. 071 on Incentives for Voluntary Rectification of Tax Returns dated 30 January 2024 (“Prakas“). The Prakas amends Prakas No. 127 dated 14 March 2024 on Incentives for Voluntary Rectification of Tax Returns in order to provide for an exemption from administrative penalty.
The Prakas applies to all taxpayers in the self-assessment regime who file for the amendment of their submitted tax returns on account of mistakes due to the confusion or forgetfulness of the taxpayers or withholding agents. It provides for exemption from any administrative penalties including additional tax, interest and monetary penalty until the end of June 2024 for taxpayers or withholding agents that satisfy the conditions set out in the Prakas.
For more information, click here to read our Legal Update.
Prakas on Corporate Governance for Insurance Companies
On 15 January 2024, the Non-Banking Financial Services Authority issued Prakas No. 005 on Corporate Governance for Insurance Companies (“Prakas“) to replace Prakas No. 185 on Requirements for Corporate Governance dated 20 March 2007. The Prakas, which aims to ensure good governance, applies to all insurance companies (life insurance, general insurance, microinsurance, and reinsurance) doing business in the Kingdom of Cambodia.
The Prakas determines (i) the composition and qualifications of the board of directors, board committees, chief executive officers, and actuaries of an insurance company; (ii) their roles and responsibilities; and (iii) administrative and pecuniary penalties in case of non-compliance with the requirements set out in the Prakas.
For more information, click here to read our Legal Update.
Notification on Advertising of Alcohol
On 9 January 2024, the Ministry of Information (“MOI“) issued a notification to broadcasting units, manufacturers, distributors and importers of alcohol and advertisement service providers (“Notification“). The Notification relates to the mass advertisement of alcohol on television, radio, and other means of communication in the form of lucky draw rewards and interviews with the winners to entice the public, especially young adults, to consume alcohol.
In order to prevent and end traffic accidents, domestic abuse, health issues and other concerns arising from the consumption of alcohol, MOI reminds all broadcasters, manufacturers, distributors, and importers of alcohol and advertisement service providers of the following:
- Comply with Circular No. 492 on the Advertisement of Alcohol issued by the MOI in October 2014.
- Do not advertise alcohol by promoting activities encouraging or enticing people to indulge in alcohol for a chance to win rewards, or using slogans that encourage people to consume alcohol.
- When advertising alcohol, do not involve women and minors under the age of 18 years in a manner that negatively affects the rights and integrity of Cambodian women.
- Any advertisement of alcohol through television, online news, billboards, LED screens and other banners must have the disclaimer “Don’t Drink and Drive” and “Drink Responsibly”.
Prakas on Formalities and Procedures of Administrative Sanction and Penalties in Trust Sector
On 3 January 2024, the Non-Banking Financial Services Authority issued Prakas No. 002 on Formalities and Procedure of Administrative Sanction and Penalties in Trust Sector (“Prakas“). The Prakas aims to set out the rules, formalities and procedure in imposing administrative sanctions and penalties by the trust inspector on persons who contravene the conditions in the licences, permits, and other registrations granted by the Trust Regulator of Cambodia.
In addition to the administrative sanctions, the Prakas provides additional administrative sanctions to be imposed by the trust inspector in the event that other offences are committed under other laws and regulations.
For more information, click here to read our Legal Update.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
