Finance Law in Cambodia
Cambodia's financial legal framework is designed to regulate and supervise the country's financial sector, ensuring stability, transparency, and alignment with international standards. Key components of Cambodia's finance law include:
1. Banking and Financial Institutions Law:
Law on Banking and Financial Institutions (1999): This law establishes the legal framework for banks and financial institutions operating in Cambodia. It outlines licensing requirements, operational standards, and the supervisory powers of the National Bank of Cambodia (NBC).
Law on the Organization and Function of the National Bank of Cambodia (1996): This law defines the NBC's role as the central bank, detailing its responsibilities in monetary policy implementation, financial stability, and regulation of financial institutions.
2. Financial Leasing Law:
- Law on Financial Leasing (2009): This legislation regulates financial leasing activities, specifying the rights and duties of parties involved and providing measures to protect their interests. It applies to the leasing of movable properties within Cambodia.
3. Public Financial Management Laws:
Law on Public Financial System: Promulgated on March 10, 2023, this law updates previous financial laws and sets fundamental principles for managing Cambodia's public financial system. It provides guidelines for developing financial laws, including the Financial Law (Budget Law), Financial Corrective Law (Budget Adjustment Law), and Post-Budget Law (Budget Settlement Law).
Financial Law for Management 2024: Enacted on December 7, 2023, this law governs the management of the 2024 national budget, including revenue collection, taxation, and public investment. It ensures that financial operations align with the government's fiscal policies and objectives.
4. Foreign Exchange Law:
- Law on Foreign Exchange (1997): This law regulates foreign exchange transactions, aiming to maintain a stable currency system and facilitate international trade and investment.
5. Other Relevant Financial Laws:
Law on Negotiable Instruments and Payment Transactions (2005): This law governs negotiable instruments and payment transactions, providing a legal framework for instruments like checks and promissory notes.
Law on Commercial Enterprises (2005): This legislation outlines the legal structure for commercial entities, including financial institutions, detailing their formation, operation, and dissolution processes.
These laws collectively aim to create a robust financial system in Cambodia, promoting economic growth, attracting investment, and ensuring the stability and integrity of financial operations within the country.
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