VINAYA LAW FIRM

Banking: Announcement On The Prohibition To Accept The Identity Card Or Family Record Book And Residence Book To Secure The Credit

Date of publication: 21-09-2018


Category: Legal updates


Audience: All


On 17th July 2018, the National Bank of Cambodia (NBC) issued an announcement on the Prohibition to Accept Identity card or Family Record Book and Residence Book to secure the credit.

1.    Concern about the prohibition act

Previously, the NBC informed all banking, financial and rural credit institutions that accepting identity cards, family record books and residence books to secure credits, has been prohibited. However, some of the said institutions are still not complying.

2.    Re-Announcement on the prohibition

In this matter, the NBC addressed a reminder for all the institutions involved by the Announcement No.7.016.210.សជណ on the prohibition to accept identity cards or family record books and residence books to secure the credit dated on 11th March 2016, to strictly and respectfully comply with the announcement and stop their unlawful action.

3.    Punishment for not complying with the prohibition

Any banking, financial institution and rural credit institution that are still going to accept identity cards, family record books and residence books to secure credits will face a serious punishment from the NBC which can lead to the seizure of their banking license according to Article 52 and 56 of the law on banking and financial institutions.