The Central Bank of Myanmar (“CBM”) issued two notifications on 3 March 2022 providing permission and guidelines for Baht/Kyat direct payments at the Thai-Myanmar Border. They are effective from the above date and apply to designated banks and all exporters and importers involved in the Thai-Myanmar cross-border trade. Purpose In order to promote the local […]

In this note we discuss the evolving legal and regulatory practices with respect to the pre-existing loan arrangements in light of the cash flow and other challenges faced by some of the borrowers. Parties can potentially follow different approaches depending on the current status of borrower’s indebtedness. Another important factor is how many lenders a […]

Three years on from the issuance of the Law on Trusts (dated 2 January 2019), the Non-Banking Financial Services Authority (“NBFSA”) issued Prakas No. 003 F.S.A.PrK on 26 January 2022 on Rules for the Management, Establishment, and Functioning of Trusts (“Prakas”) to set out the rules, conditions, and procedures on the establishment of trusts, their […]

The Central Bank of Myanmar (“CBM”) issued a notification on 20 January 2022 regarding ‘write-off’ of loans given by banks and non-bank financial institutions (“NBFIs”) to related and unrelated parties. The Notification is effective from the above date and is applicable to all banks and NBFIs (collectively, “Financial Institutions” or “FIs”). Loan risk management The […]

With a lack of thin capitalization rules in Cambodia, interest free loans have been the norm for many Multinational Enterprises funding their investment and ongoing operations in Cambodia. However, loss making or small profit margin Cambodian Taxpayers with interest free loans have found themselves facing large tax reassessments over the past three and a half […]

Two new laws related to private investments were recently adopted in Cambodia. The Law on Investment dated 15 October 2021 (the “New Law on Investment”) and the Law on Public-Private Partnership dated 18 November 2021 (the “PPP Law”). Highlights of this note The New Law on Investment New Process of Registration: Online Application Incentives Investment […]

The Central Bank of Myanmar (“CBM”) issued Notification No. 43/2021 on 3 November 2021 whereby it has capped the amount that can be paid in cash for the purchase, sale and transfer of basic goods, services or other types of payment at MMK 20 million per transaction. The Notification further states that parties should use […]

The Central Bank of Myanmar (“CBM”) issued Notification No. 46/2021 on 10 November 2021 which amends Clause 35 of the Foreign Exchange Management Regulations as follows: “The holder of a foreign currency trading licence shall inspect whether the exporters receive export earnings within three months from the date of the shipment of the goods according […]

The State Administration Council passed Law No. 57/2021 on 6 October 2021 (“Law”) amending certain sections of the Foreign Exchange Management Law 2012 (“FEML”). The Law amends Section 41 of the FEML which previously restricted ‘foreign exchange licensees’ from violating any rules, regulations, procedures etc. issued under the FEML. The Law has removed the term […]

Dubbed by some “an economic miracle”, even the global pandemic has not been able to stamp out Bangladesh’s upward development trajectory. It eked out its larger neighbor India in terms of GDP growth according to World Bank reporting, at least in 2021, and its projected GDP growth for 2022 is higher than that of Pakistan, […]

The Monetary Policy Department of the Bank of the Lao PDR (“BOL”) issued Instruction No. 878/MPD on 2 August 2021 (“Instruction No. 878”) to implement its mandate requiring all currency exchange bureaus operating in the Lao PDR to become representatives of local commercial banks on or before 11 October 2021. Those that fail to do […]

The Central Bank of Myanmar (“CBM”) issued Directive No. MaBaBaa/MP/FIR/Bank Si Sit/1(4/2021) with effect from 2 August 2021 titled “Matters regarding foreign workers employment compliance” (“Directive”).

The Central Bank of Myanmar (“CBM”) issued a directive on 15 June 2021 (“Directive”) to Non-banking Financial Institutions (“NBFIs”). The Directive sets out the documents that an NBFI requires to provide to the CBM as part of its application to seek approval for (i) opening or closing a branch office or (ii) relocation of it’s […]

In order to reduce and relieve the economic impact from the second wave of the COVID-19 pandemic in the Lao PDR, the Prime Minister’s Office has issued Notice No. 532/PMO dated 20 May 2021 (the “Notice”) specifying policies for further implementation by the relevant governmental authorities. 1. Tax policies Exemption from personal income tax for […]

The Financial Regulatory Department (“FRD”) issued a letter on 19 May 2021 which requires licensed microfinance institutions (“MFIs”) to provide one-time information to the Central Bank of Myanmar (“CBM”) regarding the cash amount they expect to withdraw over a one-week period. The format of the report is prescribed in the letter. The letter refers to […]

On 10 May 2021, the Division of Health of Vientiane Capital (“DH.VTE”) issued Notice No. 378/DH (the “Notice”) requiring that those wishing to travel in and out of Vientiane Capital must apply for a permit from the COVID-19 Taskforce Committee to travel during the lockdown period up to 20 May 2021, or a further lockdown […]

Below is a brief summary of some of the recent directives and instructions issued by the Central Bank of Myanmar (“CBM”). Minimum Reserve Requirement for banks The CBM issued Directive 2/2021 on 16 February 2021 allowing banks to continue maintaining minimum reserve requirement at 3.5% (of the total MMK deposits made by customers) till 30 […]

On the night of 14 April, the Cambodian Government ordered a number of restrictions in response to the recent rise in COVID-19 infections by means of Decision nr. 49 SR dated 14 April 2021 (“Decision 49“). The regulation was follow up by an amendment providing some additional details by Decision nr. 50 dated 17 April […]

In accordance with the recent Government directed business closures and stay-at-home orders, we would like to inform you as follows: VDB Loi in Phnom Penh will continue to operate, with the help of our cloud technology, through online processes and work-from-home.  Tax filings and government filings will continue insofar these are possible by distance/online. Tax […]

With the current drastic increase in the number of COVID-19 infections in Cambodia and to help prevent the spread of contagious diseases, the Royal Government of the Kingdom of Cambodia enacted the Law on Measures to Prevent COVID-19 and Other Fatal and Harmful Diseases on 11 March 2021 (the “COVID Law”) and Sub-Decree No. 37 […]