BANKING AND FINANCE
ANNOUNCEMENT BY THE NATIONAL BANK OF CAMBODIA № B13-017-717, dated 18 August 2017
Under this Announcement, aimed at enhancing customer protection mechanisms, the National Bank of Cambodia (“NBC”) is now empowered to impose a penalty of KHR 400 million (approximately USD 100,000) on any microfinance institution that fails to comply with the laws and regulations currently in force, particularly the Prakas on Transparency in Granting Credit Facilities of Banks and Financial Institutions.
In addition to this, the NBC will continue to perform on-site inspections of banks and financial institutions under the NBC’s supervision. The NBC will also implement strict measures as stated in Chapter 18, 19, and 20 of the Law on Banks and Financial Institutions against any banks and financial institutions which breach the laws in force.
Through this announcement, the NBC also reminds all banks, micro finance institutions, financial leasing companies, and rural credit operators that they are profit-based private institutions.
GRANTING A PERMIT FOR INFORMATION AND TECOMMUNICATION TECHNOLOGY OPERATIONs
Sub-Decree № 110 from the Ministry of Post and Telecommunication (“MPTC”), dated 21 July 2017
This Sub-Decree aims (i) to set out conditions and procedures for granting, suspending, transferring and revoking a permit when performing operations in the information and telecommunication technology sector and (ii) controlling and monitoring the implementation of permits, certificates and licenses.
Under this Sub-Decree, no person may conduct operations in information and telecommunication technology in Cambodia unless such a person obtains a permit, certificate or license from the MPTC. The General Department of Information and Telecommunication Technology of the MPTC is now vested with the authority to manage, grant, control, and monitor the implementation of these permits, certificates, and licenses to operators.
This Sub-Decree identifies business activities that are subject to permits, certificates or licenses. Of note, the sale of computer equipment, electronic devices or other information technology tools are subject to a relevant permit being obtained. On the other hand, online services and technical services must now hold a certificate issued by the MPTC. The creation and operation of data centers similarly must be licensed by the MPTC.
There are certain regulatory obligations imposed on operators including the submission of audited financial statements and non-financial information to the MPTC on an annual basis, data protection obligations, security, and information technology safety for users.
THE NATIONAL SOCIAL SECURITY FUND
AMENDMENT TO ARTICLE 7 OF SUB-DECREE № 01 DATED 6 JANUARY 2016 ON THE HEALTH CARE SCHEME
Sub-Decree № 140, dated 26 August 2017, issued by the Prime Minister of Cambodia
Sub-Decree 140 will amend the contributory requirements under Sub-Decree 01, dated 6 January 2016, whereby employers and employees must make shared contributions to the health care scheme run by the National Social Security Fund (“NSSF”).
Under Sub-Decree 140, from 1 January 2018 onwards, the health care insurance scheme of employees governed by the Cambodian Labour Law will be contributed to solely by employers.
*The information provided 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 situation.
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