Cambodia’s National Bank Introduces Know Your Customer Process for Financial Institutions and Payment Service Providers
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The National Bank of Cambodia (NBC) has recently introduced a Know Your Customer (KYC) process for financial institutions and payment service providers in the country. This move is aimed at ensuring that transactions are conducted safely and conveniently, while also helping to prevent money laundering and terrorist financing.
Background
According to the NBC’s Prakas on Launching the Use Rules and Procedures of Bakong System dated June 26, 2020, and the Prakas on Management of Payment Service Providers dated June 14, 2017, financial institutions and payment service providers in Cambodia must adhere to certain transaction limits and KYC procedures. These procedures have been put in place to ensure that customers are properly identified and verified before they can conduct transactions.
KYC Process
Under the new rules, customers who want to use online or mobile banking services provided by financial institutions and payment service providers in Cambodia will need to go through a KYC process. The type of KYC procedure required will depend on the customer’s risk level and the type of transaction they want to conduct.
Categories
- Basic: Customers can register online or via a mobile app and only need to provide their phone number.
- Partial KYC: Customers must also provide a selfie picture and a photo of their valid identification card or passport.
- Full KYC: Customers are verified in accordance with the KYC procedure of the financial institution and must provide all three pieces of information mentioned above.
Measures to Prevent Money Laundering and Terrorist Financing
Financial institutions and payment service providers in Cambodia will also need to implement certain measures to prevent money laundering and terrorist financing. These measures include:
- Monitoring transactions
- Reporting suspicious activities
- Conducting regular reviews of customer accounts
Benefits
The introduction of the KYC process is expected to benefit both customers and financial institutions and payment service providers in Cambodia. Customers will be able to conduct transactions more conveniently and safely, while financial institutions and payment service providers will be better equipped to prevent money laundering and terrorist financing.
Bakong System
In addition, the NBC has recently introduced a single payment platform called Bakong, which connects most financial institutions and payment service providers in the country. This platform allows customers to make fund transfers, payments, and settlement transactions on a real-time basis, making it easier for them to access financial services.
Conclusion
Overall, the introduction of the KYC process is an important step towards ensuring that financial transactions in Cambodia are conducted safely and securely. It is also expected to promote transparency and stability in the country’s financial sector.