Unofficial Translated

PRAKAS
on
THE MANAGEMENT OF PAYMENT SERVICE INSTITUTION

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The Governor of the National Bank of Cambodia

- With reference to the constitution of the Kingdom of Cambodia

- With reference to the Royal Degree NS/RKT/0515/417 dated May 11, 2015 on the
appointment of His Excellency Chea Chanto Governor of the National Bank of Cambodia,
as equivalent to Senior Minister;
- With reference to the Royal Kram NS/RKM/0196/27 dated January 26, 1996
promulgating on the Law on the Organization and the Conduct of the National Bank of
Cambodia
- With reference to the Royal Kram NS/RKM/1206/036 dated December 29, 2006
promulgating the amendment of the article 14 and 57 of the Law on the Organization and
Conduct of the National Bank of Cambodia
- With reference to the Royal Kram NS/RKM/1199/13 dated November 18, 1999
promulgating the Law on Banking and Financial Institutions
- With reference to the Royal Kram NS/RKM/1005/030 dated October 24, 2005
promulgating the Law on Negotiable Instruments and Payment Transactions
- With reference to Prakas No B8-98-385 Prokor dated July 20, 1998 on the Organizational
Structure of the National Bank of Cambodia and functions-duties of all departments of the
National Bank of Cambodia;
- With reference to Prakas No B1-010-194 Prokor dated November 26, 2010 on the
amendment of Article 3, Article 4, Article 5, Article 12 and Article 13 of Prakas on the
Organizational Structure of the National Bank of Cambodia and functions-duties of all
departments of the National Bank of Cambodia;
- With reference to Prakas No B-9-010-151 Prokor dated August 25, 2010 on Third-Party
Processor.
- Pursuant to the agreement reached at the Meeting of the Top Management of the National
Bank of Cambodia dated June 13, 2017.

DECIDES

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 CHAPTER 1
GENERAL PROVISION
Article 1.-
The purpose of this Prakas is to regulate and adopt procedures on licensing application of any
legal person who intends to provide payment services in the Kingdom of Cambodia.
Article 2.-
This Prakas is adopted aiming at:
1. Ensuring safety and soundness of payment services
2. Enhancing fair competition and innovation and
3. Promoting public confidence on payment services.
Article 3.-
This Prakas shall apply to any person providing payment services and to banking and
financial institutions operating under the supervision of the National Bank of Cambodia (NBC).
Article 4.-
Provision of the following payment service does not fall under the scope of this Prakas:
1. Information Technology system to support the provision of payment services, which is
not related to possession of the funds, processing and storage of data, trust and privacy
protection services, data and entity authentication, information technology (IT) and
communication network provision, provisions and maintenance of terminals and devices
used for payment services. Payment transaction that use bank premise to process fund
transfer and receiving transfer orders shall be under the scope of Prakas on Third-Party
Processor;
2. Services using specific payment instruments that can be used under a specific limit and
instruments that can only be used to acquire goods or services only in the premises of the
issued institution or within a limited network of the institution.
Article 5.-
Technical terms used in this Prakas are defined as follows:
 Payment service user: A natural or legal person making use of a payment service in the
capacity of payer, payee, or both.
 Payment transaction: An act, initiated by the payer or on his behalf or by the payee, of
placing, transferring or withdrawing funds, irrespective of any underlying obligations
between the payer and the payee.
 Funds: Banknotes and coins, scriptural money and electronic money.
 Payment Instrument: An instrument enabling a holder or user to transfer funds or to
withdraw funds;
 Electronic Money: Monetary value represented by a claim on electronic money issuer,
issued on the receipt of funds, stored electronically for the purpose of making payment
transactions and accepted as a payment instrument by natural and legal persons other than
the electronic money issuer;
 Electronic Money Issuer: A payment service institution licensed to issue Electronic
Money under this Prakas;

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  Direct debit: A payment service for debiting a payer’s payment account, where a
payment transaction is initiated by the payee on the basis of the consent given by the
payer to the payee, to the payee’s payment service institution or to the payer’s own
payment service institution.
 Credit transfer: A payment service for crediting a payee’s payment account with a
payment transaction or a series of payment transactions from a payer’s payment account
by the payment service institution which holds the payer’s payment account, based on an
instruction given by the payer.
 Payment Account: An account opened by the payment service user and used for the
execution of a payment transaction;
 Payment Initiation Service: A service to initiate a payment order at the request of the
payment service user with respect to a bank account or payment account held at banks or
another payment service institution;
 Payment service institution: any legal person licensed to provide payment services
pursuant to this Prakas.
 Standing Order: An instruction of a payer given to his or her bank to pay a fixed amount
at regular intervals to payee’s account;
 Trust Account: An account opened by Electronic Money Issuer in respect of funds
received from the users held in one or more entrusting banks with the sole purpose of
making payment transactions, as instructed by the user and shall not be used for
operational purpose of the Electronic Money Issuer;
 Agent: A natural or legal person who acts on behalf of a payment service institution in
providing payment services;
 Outsourcing Arrangement: Consists of entrusting by way of contract agreement with a
legal person or another institution to provide one or many of its services on its behalf;
 Remittance: Payment service in which a payer sends fund to a payee or to a payment
service institution that acts on behalf of the payee without any accounts opened in the
name of the payer or payee;

CHAPTER 2
APPLICATION PROCEDURE FOR LICENSE
Article 6. -
Payment services shall be defined as the following:
1. Services enabling cash to be placed on and withdrawn from a payment account, and any
operations required for operating a payment accounts;
2. Execution of payment transactions including transfer of funds on a payment account with
the user’s payment service institution or with another payment service institution:
a) Execution of direct debits;
b) Execution of payment transactions through a payment card or a similar device;
c) Execution of credit transfer including standing orders.
3. Execution of payment transaction where funds are covered by a credit line for a payment
service user:

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 a) Execution of direct debit;
b) Execution of payment transactions through payment card or a similar device;
c) Execution of credit transfer including standing orders.
4. Issuing of payment instruments, including issuing of electronic money and/or acquiring of
payment transaction
5. Money remittance;
6. Payment initiation services;
7. Other payment services as defined by the NBC.
Article 7.-
1. In addition to the provision of payment services listed in Article 6, payment service
institution shall be entitled to engage in the following activities after obtaining approval
from the NBC:
a) The provision of operational and closely related ancillary services such as ensuring
the execution of payment transactions, foreign exchange services, and the storage
and processing of data;
b) Access to accounts maintained with banking and financial institutions;
c) Access to payment clearing and settlement system;
d) Business activities other than the provision of payment services, having regard to
applicable laws and regulations.
2. In the case that the payment service institution engages in other business activities, the
NBC may require them to establish a separate entity if those activities impair or
negatively affect the financial strength as well as its compliance to rules and regulations
pursuant to payment service institution.
3. Payment service institution may hold payment account that is used only for payment
transaction. The funds received from payment service user by a payment service
institution shall not be considered as deposits.
4. Payment service institution may grant credit relating to payment services under the
following condition:
a) The credit shall be ancillary and granted exclusively in connection with the
execution of a payment transaction;
b) The credit granted in connection with a payment shall be repaid within 180 (one
hundred eighty) days;
c) Such credit shall not be granted from the funds received or held for the purpose of
executing a payment transaction;
d) Net worth of the payment service institution shall, at all times and to the satisfaction
of the NBC, be appropriate in view of the overall amount of credit granted.
Article 8.-
Any legal person who intends to provide payment services shall obtain a license from the
NBC. Banks and financial institutions intend to provide payment services including issuing a
payment instruments shall seek initial approval from the NBC.

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Article 9.-
Person applying for a license as a payment service institution from the NBC shall comply
with the following conditions:
1. A description of type of payment services envisaged;
2. A business plan including a forecast budget calculation for the first 3 (three) financial
years which demonstrates that the applicant is able to employ the appropriate and
proportionate systems, resources and procedures to operate soundly;
3. Evidence that the payment service institution holds adequate capital;
4. A description of safeguarding-of-fund procedure
5. A description of the applicant’s governance arrangements and internal control
mechanisms, including administrative, risk management, and accounting procedures,
which are appropriate, sound and adequate;
6. A description of the procedure in place to handle and follow up customer complaints,
including monitor and incidents reporting mechanisms;
7. A description of the process in place to file, monitor, track and restrict access to sensitive
payment data;
8. A description of business continuity arrangement including a clear identification of the
critical operations, effective contingency plans and a procedure to regularly test and
review the adequacy and efficiency of such plans;
9. A description of the principles and definitions applied for the collection of statistical data
on performance, transactions and frauds;
10. A security policy document, including a detailed risk assessment in relation to its payment
services and a description of security control and mitigation measures taken to adequately
protect payment service user against the risks identified;
11. A description of mechanism and the obligation in relation to AML/CFT;
12. A description of the applicant’s structural organization, including intended use of agent
and branches, agent control, outsourcing arrangements, and of its participation in a
payment and settlement system;
13. A description of the identity of shareholder, the size of their share holdings and evidence of
their suitability taking into account the need to ensure the sound and prudent management;
14. A description of the identity of directors and persons responsible for the management as
well as evidence that they are of good repute and possess appropriate knowledge and
experience to perform payment services;
15. Information pertaining to the identity of statutory auditors and audit firms;
16. Relevant legal documents and Articles of Association;
17. Identifying of the address of the applicant’s head office.
Article 10.-
1. Consulting fee of 500,000 Riels (five hundred thousand Riels) and application fee of
2,000,000 Riels (two million Riels) must be accompanied with the application for license.
2. Payment service institution shall pay annual fee for license of 20,000,000 Riels (twenty
million Riels) by January 15, each year.

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 3. For payment service institution who applies for license during the year, the license fee
shall be calculated proportionately based on the number of days left from the applying
date to the end of the year.
Article 11.-
The NBC shall provide written notification of its decision within 6 (six) months from the
receipt of application for license. Where necessary, the NBC shall extend the duration of reviewing
the application. The NBC shall set out specific conditions and timeline for the implementation of
the approval in principle. In the event that the applicant fails to comply with those conditions and
timeline, the approval in principle shall be waived, except where an extension has been requested
and approved by the NBC. The NBC shall grant a license to the applicant after satisfying that all
conditions stated in the approval in principle and related formality are fully complied with.
Article 12.-
The license is valid for a period of 6 (six) years. A license may be renewed only if the
Payment service institution’s activities comply with applicable laws and regulations and all
infractions of relevant laws and prudential regulations, if any, have been remedied.
An application for renewal of a license shall be submitted to the NBC at least 3 (three)
months before the expiration of the existing license. In the event that the request includes new
services or substantially different methods to provide the same services, the NBC shall consider
this as a request for a new license.
In the event this deadline is not met, a fine of 1,000,000 Riels (one million Riels) per day of
delay up to the submission date shall be imposed.
The Payment service institution, which would remain not comply beyond this period or any
extension of time granted by the NBC, would be subject to a suspension of license or have their
license revoked.

CHAPTER 3
MINIMUM CAPITAL AND PRUDENTIAL RULES
Article 13.-
Payment service institution shall have minimum capital not less than 8.000.000.000 Riels
(eight thousand million Riels) in cash.
The minimum capital requirement is subject to be reviewed by the NBC from time to time as
necessary.
Article 14.-
Payment service institution’s net worth shall not fall below the amount of initial capital. The
calculation of net worth will be determined in a separate provision.
Article 15.-
A license Payment Service Institution shall capital guarantee of five percent (5%) of its paid
up capital in account at the National Bank of Cambodia. Determination of interest rate shall be
stipulated in the National Bank of Cambodia’s separate regulation.
Article 16.-
Funds received from the payment service users for the execution of payment transaction and
the issuance of electronic money by the payment service institution shall be safeguarded in the
following ways:

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 1. Funds shall be deposited in a separate account in a commercial bank as Trust Account or
invested in secure, liquid low risk assets as defined by the NBC;
2. Fund held in trust account does not belonging to the payment service institution and any
benefit of the fund shall be used for the interest of payment service user;
3. In the event that the payment service institution is unable to meet its financial obligations
or in the event of insolvency, this fund shall be freeze for resettlement to the payment
service user;
4. Commercial bank who held the funds shall be responsible for monitoring and reconciling
the balance of trust account with the funds received from payment service user for
execution of payment transaction, and issuance of electronic money.
Article 17.-
Where a payment service institution intends to provide payment services through an agent it
shall comply with the following:
1. Report to the NBC the information related to the agent including the name and address,
the type of service provided, and the volume of operations;
2. Appropriate criteria to appoint agent and term and condition on their duties and
responsibilities in accordance to applicable laws and regulations.
3. Ensure that agents’ operation is under its full control and supervision and complies with
all related rules and procedures.
Article 18.-
Where a payment service institution intends to outsource operational functions of payment
services, it shall request for approval from the NBC.
Payment service institution shall ensure that outsourcing of operational function is under the
scope of its internal control and the ability of the NBC to monitor and supervise.
Article 19.-
Payment service institution shall remain fully liable for all its actions including any acts of
their employees, agents, or ability to which activities are outsourced.
Article 20.-
1. Any legal person other than banking and financial institutions and payment service
institution is prohibited from issuing electronic money. The issuance of electronic money
shall comply with the following conditions:
a) Funds received for issuing electronic money does not constitute as deposits;
b) Shall issue electronic money at par value on the receipt of funds;
c) Shall convert the funds received from an electronic money user into electronic
money without any delay and make them ready for use;
d) Shall transfer the funds collected in return for issuing electronic money to a separate
account to be opened in a bank and to keep funds on that account during the term of use;
e) Shall not grant interest or any other benefit related to the length of time during
which the electronic money holder holds electronic money;
f) Shall clearly state the condition of redemption;
g) Other conditions as determined by the NBC.

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 2. The NBC may waive the application for licensing and allow legal person to notify for
notification if the following requirement are complied with:
a) An outstanding of each payment account does not exceed a limit of 200,000 Riels
(two hundred thousand Riels) or equivalent;
b) Total outstanding of all payment account does not exceed a limit of 800,000,000 Riels
(eight hundred million Riels) or equivalent;
c) Electronic money service provided for payment of certain good or services as
specified in advance by single legal person;
d) Other conditions as determined by the NBC.
Article 21.-
To ensure safety and efficiency of the payment service to the public, payment service
institution shall:
1. Strengthen security system to maintain public confidence on the services provided;
2. Employ sufficient human resource with the right expertise and technical equipment to
operate the system safely and efficiently;
3. Document clear operating procedures and technical specification;
4. Adopt resilient internal control mechanism;
5. Upgrade the system and conduct testing emergency on a regular basis;
6. Set up contingency plan including data recovery system;
7. Set up a fraud detection system and risk identification methods.
Article 22.-
To ensure protection for payment service user, payment service institution shall:
1. Provide important information in advance to payment service user regarding to:
a) Service charge to the sender and receiver
b) Types of service to be provided
c) Exchange rate used
d) Other related fees
e) Mean and location to access payment service
f) Operation hour
g) Time for addressing consumer complaint.
2. Establish terms and conditions on the user of payment service including responsibilities of
all parties involved;
3. The payment service institution shall make available to the payment service user, in an
easily accessible manner, the information and conditions specified above with regard to its
own services.
4. The information and conditions specified above shall be given in easily understandable
words and in a clear and comprehensible form,
5. A Payment service institution shall notify a customer in writing at least [twenty-one days]
prior to the effective date of any material change in any term or condition of the

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 customer’s account required to be disclosed, unless such change is immediately necessary
to maintain or restore the security of a payment system or a customer’s account.
6. Issuer a receipt or evidence to payment service user upon completion of payment
transactions;
7. Maintain the receipts and other documents related to payment transaction for inspection
purpose.
8. Establish dispute resolution framework and disclose to payment user in order for them
seeking immediate response in the event of dispute;
Article 23.-
In order to implement the law and regulations related to Anti-Money Laundering and Combating
the Financing of Terrorism mechanism, payment service institution shall fulfill obligation as the
following:
1. Establish internal system to detect and monitor cash transaction and suspicious transaction;
2. Formulate appropriate procedures to identify payment service user and implement
customer due diligences;
3. Report suspicious transactions to the relevant authority;
4. Appoint compliance officer concern with AML/CFT issues.
5. A Payment Services Provider shall guarantee that any third party acting on their behalf
comply with the legislation referred to in this Article.
Article 24.-
1. Payment service institution intending to engage in any of the following activities shall
obtain authorization from the NBC.
a) A merger with payment service institution or other entities;
b) Dissolution or the closure of business;
c) Transfer and acquisition of all or part of business.
2. The operating license of a payment service shall terminates automatically under the
following conditions:
a) On the date when the legal personality terminates;
b) On the date when its activity ceases;
c) On the date when its license becomes invalid.
Article 25.-
Any change in the structure of capital contributors, management, operating procedures, and
other significant changes in the organization shall seek initial approval from the NBC.
Article 26.-
Payment service institution shall implement the provision of professional secrecy as stated in
Article 47 of the Law on Banking and Financial institutions

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 CHAPTER 4
EXAMINATION
Article 27.-
The NBC shall conduct an annual examination to payment service institution and its agents
upon 15 (Fifteen) days notification. The NBC may examine a payment service institution and its
agents at any time, without notice, if the NBC has reasons to believe that the payment service
institution is engaging in an unsafe or unusual practice or has violated or is violating this Prakas or
an order issued under this Prakas.
Article 28.-
A Payment service institution shall provide any information requested by the NBC and
produce all books, minutes, accounts, cash instruments or any documents relating to its business or
the business of its affiliates for the inspection of any examiner appointed by the NBC at such time
and manner as the NBC specifies. 
Article 29.-
Payment service institution shall submit supervisory return to the NBC at the latest on the
10th of the following month; using the templates provided by the NBC and on the specific date as
prescribed by the NBC for relevant information and requirements late submission of the report and
other requirement, a fine of 1,000,000 Riels (one million Riels) per day shall be imposed. Payment
service institution would be subject to severe penalty if corrective has not been taken.
Article 30.-
Payment service institution shall maintain all appropriate records for at least 5 (five) years or logs.
All records maintained by payment service institution shall disclose for supervision by the NBC.

CHAPTER 5
SANCTIONS
Article 31.-
Any person fails to comply with any provision in this Prakas shall be subject to sanctions in
accordance with Article 52 and 54 of the Law on Banking and Financial Institutions.
Article 32.-
The NBC may suspend or revoke the operating license granted to the payment service
institution under the following conditions:
1. Fails to commence operation within 6 (six) months after obtaining license; or has ceased
to engage in business operation for 6 (six) months;
2. Notifies the NBC to expressly renounce its operation rights or to cease its operations;
3. Intentionally or with gross negligence use false statements and documents when request
for license;
4. Does not meet the conditions specified in Article 9 of this Prakas;
5. Fails to comply with direction or notification of the NBC;
6. Engage in business operation without prior approval from the NBC;
7. Pose a threat to the safety, efficiency and soundness to national payment system.

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 Article 33.-
In the event that there is a delay in:
1- Provision of reports and other information: the payment service institution shall be
subject to a fine of 1,000,000 Riels (one million Riels) per day. Payment service
institution shall be subject to serious penalty if the delay continues to be extended.
2- Payment of license fee: the payment service institution shall be subject to a fine by which
the payment service institution shall pay interest at applicable refinancing rate on the
unpaid license fee up to 30 (thirty) days.

CHAPTER 6
TRANSITIONAL PROVISIONS
Article 34.-
Payment service institutions that are holding a valid license under the Prakas on Third-Party
Processor shall re-apply for license pursuant to this Prakas within 6 (six) months, except for those
institutions providing payment service as stated in Article 4 (point 1).

CHAPTER 7
FINAL PROVISIONS
Article 35.-
The General Secretary, the General Director of Central Banking, the General Cashier, the
General Director of Banking Supervision, the General Inspector, Directors of all relevant
Departments in the National Bank of Cambodia, and Banks and Financial Institutions under the
National Bank of Cambodia’s supervisory authority shall strictly implement this Prakas.
Article 36.-
This Prakas shall have effect from this signing date.

Phnom Penh,………………..……, 2017

The Governor
Signed and Sealed: Chea Chanto

To:
 As mentioned in Article 35 “for implementation”
 File – archives
Cc:
 All members of the Board of Directors
 Council of Minister “for information”
 Administration Department of CM
“for publication in the National Gazette”

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