Database

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CAMBODIA

N/A

Pillar Online sales and transactions  |  Sub-pillar Adoption of UNCITRAL Model Law on Electronic Signature
Lack of adoption of the UNCITRAL Model Law on Electronic Signature
Cambodia did not adopt the UNCITRAL Model Law on Electronic Signatures.
Coverage Horizontal

CAMBODIA

N/A

Pillar Online sales and transactions  |  Sub-pillar Ratification of the UN Convention of Electronic Communications
Lack of signature of the UN Convention on Electronic Communications
Cambodia did not sign the UN Convention on Electronic Communications, however it is reported that the legislation includes substantive provisions of the Convention.
Coverage Horizontal

CAMBODIA

Since April 2022
Since December 2021

Pillar Online sales and transactions  |  Sub-pillar Restrictions on domain names
Notification No. 837

Sub-Decree No. 287 On Management and Use of National Domain Names on the Internet
Pursuant to Art. 7 of Sub-Decree No. 287 and joint Notification No. 873, issued by the Ministry of Commerce (MOC) and the Ministry of Posts and Telecommunications (MPTC), registered companies in Cambodia are required to use a local domain name such as ".com.kh" for their websites and email addresses. The domain names are valid for one year before they have to be renewed.
Coverage Horizontal

CAMBODIA

Since March 2021

Pillar Online sales and transactions  |  Sub-pillar Restrictions on online payments
Circular on E-KYC Guidance and Transaction Limit for Payment Service in Cambodia
In March 2021, the National Bank of Cambodia (NBC) issued the "Circular on E-KYC Guidance and Transaction Limit for Payment Service in Cambodia" aimed at clarifying procedures and information required for payment service institutions to identify customers and to set limits on the daily transaction amounts allowed for each type of customer. The underlying objective of this circular is to secure digital payment transactions by payment service institutions licensed to operate in Cambodia. This circular follows the recent adoption and establishment of the Bakong Payment System by the NBC, which is a centralized platform that allows customers to make bank transfers across banks and payment institutions. Based on this circular, the size of daily transactions permitted depends on the platform, the personal information provided by the customer, and the stage of the payment service institution’s review of the customer’s information.

In accordance with the different customer risk levels, customer identification procedures are determined by the four following transaction types:
1. Transactions between Bakong Accounts;
2. Transactions between Bakong Accounts and Bank Accounts/E-Wallet Accounts;
3. Transactions between E-Wallet Accounts and E-Wallet Accounts/Bank Accounts; and
4. Transactions between Bank Accounts and Bank Accounts via Bakong (Backbone).

For transactions falling under items 1 – 3 above, customers are classified into three categories:
- Basic Customers: customers can register online or via a mobile app and only need to provide a phone number. The transaction limit is KHR 2 million (approx. USD 500) per day;
- Partial KYC: customers can register online or via a mobile app and only need to provide (i) a phone number; (ii) a selfie picture and (iii) a photo of a valid identification card or passport. The transaction limit is KHR 12 million (approx. USD 3,000) per day;
- Full KYC: Customers can register online or via mobile app or at the financial institution and must be verified in accordance with the KYC procedure of the financial institution and must provide (i) a phone number; (ii) a selfie picture and (iii) a photo of valid identification card or passport. The transaction limit is KHR 40 million (approx. USD 10,000) per day.
For transactions falling under item 4, customers are considered as full KYC customers and the transaction limit is KHR 200 million (approx. USD 50,000) per day.
Coverage Payment services

CAMBODIA

Reported in 2021

Pillar Online sales and transactions  |  Sub-pillar Threshold for ‘De Minimis’ rule
Low De minimis threshold
According to Cambodia's de minimis rule, goods with a value of up to 50 USD (35 SDR) are exempted from duties collected by the customs.
Coverage Horizontal

CAMBODIA

Since November 2019
Since August 2020

Pillar Online sales and transactions  |  Sub-pillar Licensing scheme for e-commerce providers
E-commerce Law

Sub-Decree No. 134 on Classification, Formalities, and Procedures on Granting of Permit or License to Intermediary and E-commerce Service Provider, and Exemptions
Under the E-Commerce Law, e-commerce service providers and intermediaries must obtain e-commerce permits or licenses from the Ministry of Commerce in addition to the general business registration (Art. 26.1). The E-Commerce Law broadly defines e-commerce service providers and intermediaries (Annex), and specifically states that the licensing requirement and exemptions will be clarified in subsequent regulations (Art. 26.4). Under the E-Commerce Law, the licensing regime has two categories: (1) an e-commerce permit (for individual persons and sole proprietorships) and (2) an e-commerce license (for legal persons and branches of foreign companies) (Art. 26.2).

In August 2020, Cambodia issued Sub-Decree No. 134, an implementing regulation of the E-Commerce Law. Sub-Decree No. 134 clarifies that the licensing requirement under the E-Commerce Law also applies to offshore e-commerce operations without local presence or permanent establishment in Cambodia. The Sub-Decree states that the law applies to (1) e-commerce activities and operations within Cambodia, (2) e-commerce services provided from Cambodia to other countries, and (3) e-commerce services provided from other countries to Cambodia (Art. 2). Sub-Decree No. 134 also clarifies types of business operations requiring an e-commerce license (e.g., e-commerce web services and e-commerce platforms) and those needing an e-commerce permit (e.g., selling goods or services via social media) (Art. 5).
Coverage e-commerce web services, e-commerce platform services, online market services, online auction website services, and other similar services provided through software or smart devices for the promotion of e-commerce

CAMBODIA

Since August 1997

Pillar Online sales and transactions  |  Sub-pillar Restrictions on online payments
Law on Foreign Exchange
Art. 5 of Law on Foreign Exchange establishes that foreign exchange operations shall be undertaken solely through authorized intermediaries. These operations include 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. Therefore, only banks permanently established in the Kingdom of Cambodia shall be considered as authorised intermediaries for international settlements.
Coverage Horizontal

CAMBODIA

Since August 2010

Pillar Online sales and transactions  |  Sub-pillar Restrictions on online payments
Prakas on Third-Party Processors
Art. 3 of Prakas on Third-Party Processors establishes that a person which is not a bank may not engage in the business of payment transactions or hold itself out as providing payment transactions services unless the person is entrusted by a bank to act as its third-party-processor (that is, a person entrusted by a Bank to conduct one or more parts of its payment transactions services - Art. 2), and is licensed by the National Bank of Cambodia (NBC). Once entrusted by the Bank and licensed by NBC, a third-party processor may act on behalf of the bank to provide one or more of the following services listed in Art. 3:
- A communication facility;
- An interbank clearing facility, which may further transmit inter-bank settlement information to Banks, including the Bank in which settlement is completed;
- Managing or operating of Bank customers' accounts; and/or
- Play as a sending and receiving point for payment orders sent or received by the Bank, which may be accessed directly by the Bank's customers for sending and receiving payment orders;
- A service provider of money remittance by mobile phone or other means;
- A service provider of clearing and settlement of debit and credit card payment.
Coverage Payment services

CAMBODIA

Since June 2007, last amended in 2018

Pillar Technical standards applied to ICT goods, products and online services  |  Sub-pillar Self-certification for product safety
Law on Standards of Cambodia
It is required that several products sold in Cambodia obtain national certification, although this certification is often based on international standards. Foreign manufacturers need to sign an agreement with the Institute of Standards of Cambodia (ISC) to obtain local certification. Any entity can apply for a license that would allow it to use the ISC Certification Mark. The license has a validity of three years, which can be extended for three years at a time, subject to satisfactory operation of the license.
According to Art. 48 of the Law on Standards of Cambodia states that no person or organization can announce that they have received a standard-conformity certificate, although they have been certified by a local or foreign certification body unless they have been registered and received approval from the ISC.
Coverage Horizontal

CAMBODIA

Since November 2019
Since August 2020
Since October 2020

Pillar Content access  |  Sub-pillar Licensing schemes for digital services and applications
E-commerce law

Sub-Decree No. 134 on Classification, Formalities, and Procedures on Granting of Permit or License to Intermediary and E-commerce Service Provider, and Exemptions

Prakas No. 290 on the Issuance of Electronic Commerce Licenses and Permits.
Under the E-Commerce Law, e-commerce service providers, and intermediaries must obtain e-commerce permits or licenses from the Ministry of Commerce (MOC) in addition to the general business registration (Art. 26.1). According to Art 26.2, the licensing regime has two categories: (1) an e-commerce permit (for individual persons and sole proprietorships) and (2) an e-commerce license (for legal persons and branches of foreign companies). Electronic commerce service providers are defined as a "person who uses electronic means to supply goods and/or services except for insurance establishments", while intermediary "refers to a person providing services, sending, receiving, transmitting or storing services, either on a temporary or permanent basis, of the electronic communication or provides other services relating to the electronic communication, including the following persons: a person representing the sender, receiver, transmitter, or the custodian; telecommunication service providers; network service providers; internet service providers; search engines providers; online payment service providers; online auction service providers; online marketplaces service providers and internet commerce service provider".

In August 2020, Cambodia issued Sub-Decree No. 134, an implementing regulation of the E-Commerce Law, which clarifies that a license is required for legal persons and branches of foreign companies carrying out the following activities: e-commerce web services, e-commerce platform services, online market services, online auction website services, and other similar services provided through software or smart devices for the promotion of e-commerce (Art. 7). An E-Commerce permit is required for natural persons and sole proprietors that operate a business via electronic system in Cambodia (including those who conduct business via social media and electronic system to supply or sell/purchase goods and services) (Art. 6). Pursuant to Article 7.1, legal entities or foreign branches that are intermediaries of electronic-commerce service providers must apply for a license at the MOC and meet the following conditions:
- Business registration and tax registration with registered business activities relating to e-commerce;
- It must have obtained an Online Service Certificate and domain name from the Ministry of Posts and Telecommunications;
- It must use an electronic application or means for operating e-commerce;
- The electronic system used by it must be accurate;
- It must specify the payment method;
- It must have a business model and consumer protection form.

If it is a legal entity or foreign branch acting as an intermediary, it must enter into a contract with the business service providers. In October 2020, the MOC issued Prakas No. 290. It sets forth the required documents to apply for e-commerce licenses and permits, as well as detailed procedures and time frames for the MOC to review the applications. The regulation also stipulates the timelines and procedures to renew the permits and licenses, among other things (Arts. 3–8.).
Coverage e-commerce web services, e-commerce platform services, online market services, online auction website services, and other similar services provided through software or smart devices for the promotion of e-commerce

CAMBODIA

Since March 2012

Pillar Quantitative trade restrictions for ICT goods, products and online services  |  Sub-pillar Import ban applied on ICT goods, products and online services
Import ban
The Cambodia Custom and Excise General Department announced in March 2012 the ban of importation of old computers and spare parts for occupational purposes, except, for self-consumption and/or charity in a minor amount.
Coverage Used computer and its spare parts

CAMBODIA

Reported in 2020

Pillar Quantitative trade restrictions for ICT goods, products and online services  |  Sub-pillar Other import restrictions, including non-transparent/discriminatory import procedures
Lack of transparency in customs processing
It has been reported that Cambodia's Customs and Excise Department engages in practices that are non-transparent and that appear arbitrary. Importers frequently cite problems with undue processing delays, burdensome paperwork, and unnecessary formalities.
Coverage Horizontal

CAMBODIA

Since November 2019
Since November 2022

Pillar Content access  |  Sub-pillar Restrictions on online advertising
Law on Consumer Protection

Sub-Decree No. 232 on the Management of the Advertisement of Goods and Services
Khmer language requirements have been a key feature of recently adopted rules on advertising and labeling. Law on Consumer Protection (Art. 27.2) mandated that any person who conducts advertising shall be in Khmer language. Furthermore, Sub-Decree No. 232 (Art. 9) requires all commercial advertising of products and services—by any channel—to use Khmer as the primary language. If foreign-language text is used in advertisements, it must comply with the sub-decree rules on placement and font size to ensure the Khmer text retains its prominence. It is reported that the Khmer language requirement will be an onerous obligation for some businesses, and pushback can be expected.
Coverage Horizontal

CAMBODIA

Since December 2015

Pillar Content access  |  Sub-pillar Licensing schemes for digital services and applications
Law on Telecommunications
Art. 15 of the Law on Telecommunications provides that a license from the Telecommunication Regulator of Cambodia (TRC) and the Ministry of Posts and Telecommunications (MPTC) is required for the provision of VOIP and Internet café services.
Coverage VOIP and Internet café services

CAMBODIA

Since December 2015

Pillar Content access  |  Sub-pillar Licensing schemes for digital services and applications
Law on Telecommunications
Art. 99 of the Law on Telecommunications introduces sentences of six months to two years imprisonment and heavy financial penalties for “any act of producing, installing or distributing software or hidden audio recorders for recording dialogue” without approval from the authorities. This unclear provision, which seems to require government approval for any software that can record sound, could potentially criminalize the basic use, sharing, or development of software such as smartphone apps. Additionally, the range of sound-recording hardware concerned with this provision is unclear as well.
Coverage Software recording sound