Financial Crime World

KYC Procedures in Cambodia: Understanding the New Rules

The National Bank of Cambodia (NBC) has implemented a series of regulations governing know-your-customer (KYC) procedures for financial institutions and payment service providers in the country. The new rules, introduced through two prakas (regulations), aim to enhance transparency and security in transactions conducted through the Bakong system.

What is Bakong?

Bakong is a single payment platform that connects most financial institutions and payment service providers in Cambodia, enabling customers to make fund transfers, payments, and settlement transactions in real-time. The platform provides wider access to finance, making it more efficient and convenient for both customers and financial institutions.

KYC Procedures: A Tiered Approach

The NBC has categorized customer identification procedures into four transaction types:

  • Transactions between Bakong accounts: Transactions involving two Bakong accounts
  • Transactions between Bakong accounts and bank accounts/e-wallet accounts: Transactions involving a Bakong account and a bank or e-wallet account
  • Transactions between e-wallet accounts and e-wallet accounts/bank accounts: Transactions involving an e-wallet account and another e-wallet account or a bank account
  • Transactions between bank accounts and bank accounts via Bakong (backbone): Transactions involving two bank accounts, facilitated by the Bakong system

Customers are classified into three categories:

Customer Categories

The NBC has categorized customers based on their transaction limits as follows:

  • Basic customers: Customers with a daily transaction limit of KHR 2 million (approx. USD 500)
  • Partial KYC: Customers with a daily transaction limit of KHR 12 million (approx. USD 3,000)
  • Full KYC: Customers with a daily transaction limit of KHR 40 million (equivalent to USD 10,000) or more

For transactions falling under the backbone category, customers are considered full KYC and have a higher transaction limit of KHR 200 million (equivalent to USD 50,000) per day.

Conclusion

The new KYC procedures in Cambodia aim to enhance security and transparency in transactions conducted through the Bakong system. Understanding these regulations is crucial for financial institutions and payment service providers to ensure compliance and provide seamless services to their customers.