A Guide to Transferring Funds into Cambodia

Transferring money to Cambodia is a straightforward process, but it is important to have the correct documentation and comply with relevant laws. In this guide, we will cover the essentials you need to know before transferring funds into Cambodia.

Foreign exchange controls 

Cambodia does not impose restrictions on the repatriation of capital or profits out of the country, as long as the transfers are conducted through registered financial institutions such as banks. The official currency of Cambodia is the Riel (KHR), but most transactions are conducted in US dollars. Remittances are subject to applicable withholding taxes.

Restriction on foreign exchange

Under the Law on the Foreign Exchange of September 1997, there are no restrictions on foreign exchange operations through authorised intermediaries, 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 non-residents.

Authorised intermediaries must provide the National Bank of Cambodia with periodic statements, by type of transfer or settlement and outflows and inflows of capital carried out between Cambodia and the rest of the world, according to the time set by the National Bank of Cambodia. Residents are allowed to hold foreign currencies freely, both in the form and location of such holdings inside the country. However, in the case of a foreign exchange crisis, the National Bank of Cambodia may issue regulations to be implemented for a maximum period of three months, temporarily suspending the enforcement of this provision.

Transfers Relating to Investment or Liquidation of Investment

Transfers relating to investment or liquidation of investment shall be made through authorised intermediaries. The authorised intermediaries shall report to the National Bank of Cambodia the amount of each transfer equaling or exceeding one hundred thousand US dollars (USD 100,000).

Remittance

Article 11 of the Amended Law on Investment of 2003 gives assurance that Qualified Investment Projects (QIPs) have the freedom to send foreign currency overseas, which they purchased through authorized banks, to settle any financial obligations they have related to their investment. 

These obligations may involve:

1. Payment for imports and repayment of principal and interest on international loans;
2. Payment of royalties and management fees;
3. Remittance of profits; and
4. Repatriation of invested capital in case of dissolution.

Reminder!

Keep in mind, before transferring funds to Cambodia, it is important to check with your bank in Cambodia to ensure that the correct documentation is completed and compliant with relevant laws. By following the guidelines outlined in this article, you can easily transfer funds into Cambodia without any problems.

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