Phnom Penh, November 18, 1999
CHAPTER 17 Money Laundering
Article 51: In addition to the specific legal provisions that it must observe regarding money laundering, a covered entity shall take appropriate measures to identify precisely all its customers and, above a threshold to be defined by the supervisory authority, the transactions carried out through them, and shall keep all relevant documentation thereon for at least ten years.
CHAPTER 18 Disciplinary Sanctions
Article 52: If a covered entity has contravened a provision of the laws or regulations governing its activities, has failed to heed a warning or not complied with an injunction, the supervisory authority may impose one of the following disciplinary sanctions:
- prohibition on the execution of certain operations and any other limitations on the carrying on of business;
- temporary suspension of one or more of the executives, with or without appointment of a provisional administrator;
- compulsory resignation of one or more of the executives, with or without appointment of a provisional administrator;
- setting up a provisional administration;
- withdrawal of the license and liquidation.
Furthermore, the supervisory authority may, either in place of or in addition to these sanctions, impose a fine not exceeding the minimum capital of the covered entity.
Article 53: The appointment of a provisional administrator or of a liquidator is an urgent administrative and protective measure. The covered entity concerned must be given notice of the measure, which is enforceable immediately.
Article 54: The supervisory authority decides as a last resort jurisdiction in the case of the other disciplinary sanctions, which are of a moral or a financial nature. These decisions are enforceable immediately but may be appealed to the highest administrative jurisdiction on the grounds of legal flaw or irregularity.
CHAPTER 19 Penalties
Article 55: In addition to the penalties provided for in case of violation of provisions of ordinary law or of the legal statute of non-commercial societies, the following penalties may be applied under this law:
1. Any person who, acting either for his own account or for the account of a legal person, as his regular business and on behalf of the general public carries out banking operations, without a license, shall be liable before the courts to imprisonment from 1 year to 5 years and a fine from 5 million to 250 million Riels, or to either of these penalties, without prejudice to the closure of the concerned establishment.
2. Any person or entity who infringes any of the provisions of Articles 9, 11, 18, 19, 27, 30, and 47, shall be liable before the courts to the penalties provided for in Article 55‑1 above.
3. Any person, acting either for his own account or for the account of a legal person, shall be liable before the courts to imprisonment from one year to five years and a fine from 1 million to 10 million Riels, or to either of these penalties:
- if he infringes any of the provisions of Articles 8, 13, 23, 24, 28, 38, 39, 44, 45, 46 and 51;
- or if, after formal demand from the supervisory authority, he fails to respond to request for information provided for in Article 40‑7;
- or if he knowingly provides the supervisory authority with inaccurate information;
- or if he hinders examinations implemented by the supervisory authority or by the external auditors of a covered entity or hinders the missions of a provisional administrator or of a liquidator appointed by the supervisory authority.
Article 56: The penalties provided for in Article 55 shall be imposed by the courts, in particular after a prior complaint or action for damages by the supervisory authority or by the covered entities’ professional association provided for in Article 72 hereafter.
Cambodia-Law on Banking and Financial Institutions-1999-eng (full text in English, PDF)