Published on and written by Cyril Jarnias
Moving to Cambodia, whether to work, invest, or retire, almost always requires rethinking how you manage your money. The country is attracting more and more expatriates, infrastructure is modernizing, the banking sector has exploded in size and sophistication, and digital payments have become part of daily life. But this rapid evolution comes with an original monetary environment – the famous dual-currency system – and a very dense, sometimes confusing banking landscape when arriving from abroad.
This article provides a structured guide covering opening bank accounts, payment methods, tax on interest, international transfers, and security issues. It aims to help expatriates make banking choices suited to their length of stay, sources of income, and risk tolerance, for effective financial management on the ground.
A Highly Banked Country, But Still Very “Cash”
Cambodia is now one of the leading destinations in Southeast Asia for expatriates. People come for the quality of life, the relatively low cost of living, a growing economic environment, and a particularly dynamic banking sector. In a decade, the country has gone from a largely informal system to a universe where nearly 60 commercial banks, microfinance institutions, fintechs, and daily-use payment apps coexist.
According to the National Bank of Cambodia, about 80% of transactions in the country still take place in US dollars.
The banking boom has been accompanied by a transformation of payment habits. The country remains very “cash,” especially outside major cities, but Phnom Penh, Siem Reap, Sihanoukville, Battambang, and Poipet have seen a proliferation of ATMs, payment terminals, and especially QR codes. According to the NBC, over a billion digital transactions were recorded in 2022, supported by the widespread use of e-wallets and the Bakong platform, the Cambodian central bank digital currency.
Understanding the Dual-Currency Monetary System
For an expatriate, the first practical challenge is understanding how currencies circulate in the country. The framework is fairly simple on paper but can be surprising in daily life.
The Riel (KHR) is the sole legal tender. The US dollar is widely accepted for major transactions (hotels, rent, schools, etc.). For small daily expenses (street coffee, tuk-tuk), the Riel is preferable. Merchants often display prices in dollars but give change in Riels for cents.
Banks generally offer accounts in both currencies, sometimes also in Thai baht, Chinese yuan, or euro, with interest rates higher in Riel than in dollars. This reflects the “de-dollarization” strategy launched by the National Bank from 2019, which pushes institutions to reward savings in Riel more to encourage its use, particularly on digital channels.
An expatriate in Cambodia must manage the duality of US dollar (USD) and riel (KHR). Holding only USD forces you to accept large bundles of riel as change, which is impractical. Conversely, keeping a significant balance in riel exposes you to exchange rate risk if your income is in hard currencies (USD, EUR, AUD). The common compromise is to use riel for daily expenses and part of short-term savings, and the dollar for precautionary savings and long-term deposits.
Why Open a Local Bank Account as an Expatriate
Technically, a foreigner can very well live several months in Cambodia relying only on their international cards. ATMs widely accept Visa and Mastercard, some hotels and restaurants take foreign cards, and money transfers from abroad are possible via Western Union, MoneyGram, Wise, or other players. But as soon as the stay exceeds a few weeks, this strategy becomes costly and impractical.
An expatriate using a British bank card had to pay $11 in fees for a simple withdrawal of $200. This cost typically breaks down into $4 to $5 charged by the local bank, plus a 2 to 3% commission applied by the issuing bank for the international transaction, illustrating how quickly these expenses add up.
Security is a second strong argument. Living with several hundred dollars in cash on you or in your residence, in a country where snatch thefts and burglaries exist, is rarely a good idea. A local account allows you to keep only the bare minimum in cash on you and rely on a dense network of ATMs.
To facilitate daily life and professional procedures, opening a local bank account is highly recommended. It allows you to handle most routine expenses (rent, bills, school fees, health insurance, salaries) via transfer or mobile app. For employees, it is essential for receiving your salary. For entrepreneurs or freelancers, it is a prerequisite for registering a company and opening a business account.
On a practical level, opening an account usually requires a physical presence at a branch, although some institutions experimented with remote procedures during the pandemic. The process is known to be quick: between twenty minutes and an hour at the counter, then a short wait for final activation or card issuance.
Opening Conditions: Documents, Visa, Address
Requirements vary by bank, but there is a common core of conditions. The minimum age is 18 years. A passport valid for at least six months is systematically required, along with a valid Cambodian visa. Historically, many banks required a “business” type visa extension (E visa) valid for one year; now, some institutions accept visas of shorter duration, even tourist visas, but proof of longer-term stay is still preferable to avoid having your application blocked.
To open a bank account, proof of residence (lease, utility bill, Sangkat certificate) is essential. For some accounts, proof of employment (contract, attestation) or business registration for the self-employed may be required. A passport-style photo on a white background is sometimes needed.
Financially, the initial deposit varies greatly from one institution to another. Several banks accept opening a simple savings account with no minimum deposit, while others require $100, $200, or even $500 depending on the account type. Sometimes a minimum balance must also be maintained to avoid monthly fees.
A Cambodian phone number is almost essential, as banks make heavy use of SMS and notifications for login security and transaction validation. Buying a local SIM card upon arrival therefore greatly facilitates opening an account.
Choosing Your Bank: Criteria and Major Players
In a country with nearly 59 commercial banks, the question is not whether there is an offer suitable for expatriates, but rather how to navigate the options. Several criteria help filter.
Presence in the country and the ATM network is a determining factor. A very technological institution with few branches or ATMs outside the capital will be less practical for residents of the provinces. The quality of mobile apps, the reliability of online banking, and the clarity of interfaces in English also play a major role, in a context where over half of clients already make transfers online and a quarter pay all their bills via apps.
Fees and interest rates are equally important, whether for savings or daily services (card, transfers, withdrawals). Finally, reputation in terms of security, compliance, and customer service must be considered, as the quality of teams and the robustness of procedures vary from bank to bank.
ABA Bank, Digital Champion
ABA Bank (Advanced Bank of Asia) has established itself as the reference for many expatriates. Wholly owned by the National Bank of Canada, it combines a dense physical network – 99 branches, over 250 self-service kiosks, over 450 ATMs – and a mobile app often considered the most advanced in the country. Features include QR payments, internal and interbank transfers, bill payments, virtual cards, and multi-currency account management.
Discover the financial solutions and products offered, designed for flexibility and performance.
Instant issuance of debit cards in-branch and free virtual cards for secure online payments.
Opening with no initial deposit, with earnings up to 1.5% per year on dollar deposits.
Two plans: standard from $100 (no interest) and Current PLUS from $500 (with interest between 1% and 1.5%).
Attractive rates of 3% to 4% per year, with dollar offers reaching up to 8% under certain duration and amount conditions.
For non‑residents, the minimum deposit is 50 dollars, with a balance to maintain of $10. The institution also offers an “offsite” account opening service, where an agent visits the client’s home or office, a valuable advantage for those who don’t have the time or ability to visit a branch.
ACLEDA, the Omnipresent Giant
ACLEDA Bank is another flagship institution, with more than 230 to 265 branches depending on sources, covering both major cities and rural areas. Born in microfinance in the early 1990s, it has evolved into a major commercial bank, recognized for its stability and ability to serve less urban populations.
Its mobile app is among the most advanced on the market and enables QR payments, transfers, and multi-currency management (KHR, USD, THB, EUR). Savings accounts have no initial deposit or minimum balance requirements, with interest calculated daily and compounded monthly. Term deposits offer rates ranging, depending on periods, between 3.9 and nearly 5% per year, with earnings generally more attractive in Riel than in dollars.
For an expatriate living outside Phnom Penh or wanting easy access to ATMs throughout the country, ACLEDA is often the safest choice.
Canadia Bank, Local Pillar
Canadia Bank, privatized in the late 1990s, is one of the oldest local institutions and enjoys a solid reputation, particularly in financing and financial stability. It offers accounts in multiple currencies, a well-developed network of branches and ATMs, and a modernized mobile app.
Opening a checking account requires an initial deposit of about $200 (USD, KHR, or Thai baht). In the past, Canadia Bank stood out for having no fees on ATM withdrawals with European cards, an advantage now reserved for those cards and not American cards, illustrating its strategy to make its services attractive.
Wing Bank and Highly Digital Banks
Wing Bank, which in a few years went from a simple money transfer service to a full-fledged commercial bank, illustrates the Cambodian fintech wave. A member of the Royal Group, it relies on an extremely dense network of agents in rural areas and a mobile app that enables transfers, bill payments, micro-savings, and even digital credit.
Wing is particularly suited for small payments, fast money transfers, and daily transactions. However, its services for large flows or complex expatriate needs (investments, large deposits, sophisticated international operations) remain more limited than those of large traditional banks.
Sathapana Bank has also adopted a “digital first” strategy. Resulting from the merger of a Japanese bank (MARUHAN Japan Bank) and a microfinance institution, it has 175 branches and nearly a million customer accounts. Its recent mobile app clearly targets the connected clientele, with traditional savings accounts (initial deposit around 100 dollars, interest of 0.5% in USD and 0.75% in KHR) and “Smart Savings” type accounts that can go up to 3.5% per year. Term deposits start at 50 dollars and can offer between 3 and 5% in USD, and from 4 to 5.5% in Riel.
International Banks: Maybank, BRED, J Trust Royal…
Several foreign banks complete the landscape and may appeal to some expatriates, either due to familiarity or for their links with other markets. Maybank, the large Malaysian group established in Cambodia since 1993, has 21 branches and positions itself as the partner of choice for SMEs and regional businesses, but also for individuals.
Maximum annual interest rate offered by Maybank for term deposits in local currency (Cambodian Riel).
BRED Bank, a subsidiary of BRED Banque Populaire, is the only true European bank present in Cambodia. Launched in 2017, it has a network covering Phnom Penh, Siem Reap, and Battambang. Its particularity lies in the direct link with a French banking group, which can reassure some European profiles. “Savings Plus” type accounts start with a deposit of $5,000 and interest by bracket, while term deposits accept a minimum of $500, for rates of 3 to 5.65% in USD depending on maturity. BRED ATMs are sometimes cited as having lower than average fees for foreign cards (about $4 per withdrawal).
J Trust Royal Bank, heir to the former ANZ Royal, combines the experience of a major Australian player and the capital of a Japanese bank. With 15 branches, it offers accounts accessible with a $1 deposit (“The One Account”), goal-based savings accounts (“Goal Savings”) from $10, and term deposits offering between 1.5 and 3.75% in USD and 3.5 to 5.5% in KHR.
Comparing Some Flagship Products
With many offers available, it is useful to have some synthetic comparison points. The table below illustrates some orders of magnitude for basic dollar savings accounts, for indicative purposes.
| Bank | Initial Savings Deposit (USD) | Indicative Max Savings Rate USD (p.a.) | Advanced Mobile App |
|---|---|---|---|
| ABA Bank | 0 | Up to 1.5% | Yes |
| ACLEDA | 0 | Around 2% (depending on period) | Yes |
| Maybank | 0 (for 60 days) | 0.5% | Yes |
| Sathapana | 100 | 0.5% (standard account) | Yes |
| BRED | 5,000 (Savings Plus) | Progressive rates by bracket | Yes |
For term deposits, the differences in rates are even more marked. Many banks reward deposits in Riel more, but some players like Campu Bank (Cambodian Public Bank) or Foreign Trade Bank (FTB) display rates that can go up to 8% per year on dollar term deposits, under amount and duration conditions. This type of offer can be attractive for expatriates with significant savings, provided they understand the risks (including regulatory and counterparty).
Accounts in Riel, Dollars, or Multi-Currency: Finding the Balance
For an expatriate, the question is not only choosing an institution, but also the structure of their accounts. Most banks allow opening both a Riel account and a dollar account, sometimes supplemented by other currencies.
The arguments for keeping part of one’s funds in dollars relate to the relative stability of the currency and the fact that many structured expenses (upscale rents, international schools, private medical care) are billed in USD. Dollar term deposits also offer already attractive returns for an average profile, without exposure to KHR/USD exchange rate risk.
Holding a Riel account facilitates daily payments in Cambodia, as small merchants often display their prices in KHR. Furthermore, the National Bank of Cambodia (NBC) encourages banks to lend at least 10% of their outstanding loans in Riel and to offer competitive interest rates on this currency. Interest on Riel deposits frequently exceeds that on dollar deposits by several points. For an expatriate whose main budget is spent locally, keeping part of their funds in Riel can thus improve overall return without increasing daily risk.
Multi-currency accounts, offered by several banks (and particularly by some international offers), allow holding balances in USD, KHR, THB, RMB, and even EUR under a single profile. They are useful for those who receive income in different currencies or frequently make regional transfers, while limiting exchange costs.
Tax on Interest and Expatriate Taxation
Another important aspect of financial management in Cambodia concerns taxation. On bank income, the general rule is simple: banks withhold the tax due on interest paid at source. The rate depends on the beneficiary’s status and the type of income.
For bank interest, residents are taxed at a rate of about 15% and non-residents at a rate close to 14%, according to the various published withholding tax tables. For dividends, residents benefit from an exemption, while non‑residents are subject to a 14% withholding, often associated with an “advance tax on dividend distributions” mechanism. Royalties and technical fees are taxed around 15% for residents and 14% for non-residents.
For expatriates, tax on interest is generally deducted at source by the bank, which credits the account with the net amount. Most individuals do not have to file a specific tax return in the host country, unless their status requires it. However, it is crucial to check reporting obligations in the country of origin, as some states require interest earned abroad to be declared, even after withholding at source.
The Cambodian tax framework also provides for a progressive income tax, with rates ranging from 0 to 20% based on monthly brackets in Riel. For salaried expatriates on the ground, this tax is usually deducted directly by the employer under the “Tax on Salary”. Non‑residents may be subject to a flat rate of 20% on Cambodian-source income. On the other hand, there is currently no widespread capital gains tax for individuals, although a specific tax on certain asset disposals has been announced.
Cambodia does not apply the OECD’s CRS standard but implements a FATCA agreement with the United States. American expatriates must report their foreign accounts exceeding a certain threshold via the FATCA form and comply with their US tax obligations.
Digital Payments, Bakong, and QR Codes: The New Daily Life
One of the big surprises for many newcomers is the level of maturity of digital payments. Despite a very cash-heavy legacy, Cambodia has seen rapid adoption of banking apps and e-wallets. Mobile penetration far exceeds 100%, with most residents having multiple SIM cards, and over half the population has internet access.
Over 70 financial institutions are connected to the Bakong payment infrastructure.
On this basis, the NBC launched the unified KHQR code standard in 2022. The idea is simple: regardless of your bank or e-wallet, you scan a KHQR QR code and make an instant payment in Riel or dollars, without having to check system compatibility. For the end user, the experience increasingly resembles that seen in pioneering countries like China: a QR code on the sidewalk, in a tuk-tuk, in a neighborhood shop or a large mall, which you scan via your bank’s app (ABA, ACLEDA, Canadia, Wing, etc.).
For an expatriate, adopting mobile payment simplifies daily life by allowing routine expenses to be paid with your phone. It reduces dependence on cash, thus improving security. Finally, it provides access to advanced banking services, even in areas with few physical branches, via agent networks or operators like Wing.
The flip side is that you need to adopt good cybersecurity practices. Using a secure Wi-Fi network for online banking, regularly updating your apps, enabling biometric authentication, and monitoring your statements remain essential habits. The country has experienced cases of card skimming at ATMs, and, as everywhere, phishing and SMS fraud attempts exist.
International Transfers: Choosing Between Bank, Fintech, and Cash
For many expatriates, managing international flows remains at the heart of their financial strategy. Salary paid abroad, retirement pension, rental income, family transfers, investments: the back-and-forth of funds between the country of origin and Cambodia is frequent.
Cambodian banks generally offer incoming and outgoing SWIFT transfers. Institutions like ABA or Canadia are known for processing wire transfers received from abroad quickly. There is no strict capital control capping amounts that can enter or leave the country via licensed banks, which facilitates fund mobility for individuals. However, beyond $10,000, it is mandatory to declare transfers to the National Bank or customs when it involves the physical transport of cash.
Transfers via traditional banks involve fixed fees from the sending and receiving banks, commissions from intermediary banks, and exchange rate margins. For modest and recurring amounts ($200 to $500), these costs can represent a significant portion of the transfer.
It is in this space that platforms like Wise (formerly TransferWise), Remitly, WorldRemit, or Xoom have established themselves. Wise, for example, charges moderate proportional fees (around 1 to 2% depending on corridors and payment methods), with an exchange rate very close to the real market rate. A transfer of 200 dollars to a Cambodian account can thus cost less than 3 dollars, compared to sometimes more than 10 dollars if you add up ATM fees and bank commission with an international card.
Traditional networks like Western Union, MoneyGram, or Ria are widely used for cash transfers, especially in areas where beneficiaries do not have a bank account. Accessible via many bank branches or partners like Wing, they offer extensive coverage. Their main advantages are speed (money available in minutes) and the breadth of their network, despite fees generally higher than those of specialized fintechs.
In practice, many expatriates combine three channels: an account in their country of origin to receive their income, a local account in Cambodia for daily life, and one or more Wise-type solutions to transfer funds in an optimized way. Occasional use of an ATM with a foreign card remains possible but becomes a safety net rather than a permanent mode of operation.
Daily Banking Fees: Withdrawals, Payments, Conversions
Beyond international transfers, the structure of fees in Cambodia deserves to be anticipated. As a rule, withdrawing money from your own local bank’s ATM does not incur additional fees, except sometimes a small commission beyond a certain number of free withdrawals. On the other hand, using a foreign card almost always incurs fixed fees of $4 to $5 per withdrawal, sometimes more, to which is added the issuing bank’s commission (often around 3%), and sometimes an additional cost related to currency conversion if you accept the dynamic conversions offered on the screen (which it’s better to decline).
Card payments (Visa, Mastercard) are widely accepted in tourist sectors, but some merchants apply a commission of 2 to 4%. To avoid these fees, many residents prefer to use cash or QR codes.
Currency conversions constitute another source of potential costs. Changing large sums in cash at unlicensed offices (“black exchange”) exposes you to risks of counterfeit bills and controls. Licensed banks and exchange offices offer more security, even if their rates are not always the best. Again, digital solutions (Wise, etc.) often allow you to get a better rate than traditional card conversions or physical offices, especially for significant amounts.
Security, Risks, and Best Practices
In terms of security, the challenges are both classic and specific. On the physical level, snatch thefts of bags or phones from motorbikes or tuk-tuks are frequent in some urban areas. Carrying large sums of cash or leaving money in an unsecured hotel room mechanically increases the risk. A local account, a debit card, and digital payments reduce exposure to these risks.
ATMs can be equipped with skimming devices to copy your card data and PIN. To minimize risks, prefer ATMs located inside bank branches, shopping malls, or large hotels. Avoid those installed in quiet alleys or on the facades of small shops.
On the digital level, the widespread use of banking apps is accompanied by fraud attempts: messages posing as the bank, phishing, fake login sites. The golden rule remains to never click on a link received by SMS or messaging to access your account, but to always go through the official app or website typed manually. Enabling two-factor authentication, regularly checking transactions, and using strong, unique passwords are basic precautions.
Cambodia has strengthened its regulations against money laundering and terrorist financing. Banks apply KYC (Know Your Customer) procedures and may require proof of the origin of funds, particularly for significant operations. As an expatriate, it is crucial to maintain perfect transparency by providing all necessary documents (employment contracts, pay slips, foreign bank statements, deeds of sale) to avoid any blocking or suspicion during your transactions.
Typical Financial Strategy for an Expatriate in Cambodia
In the end, how to concretely structure your banking management in Cambodia when settling there for a few years? The answer varies by situation, but a few broad principles emerge.
Keeping an account in your country of origin generally remains essential, if only to receive income (salaries, pensions, rent, dividends) and pay certain charges (taxes, mortgage loans). A local account in Cambodia almost always proves worthwhile as soon as you spend several hundred dollars per month on the ground. It drastically reduces withdrawal fees and provides access to digital banking services.
It is advisable to structure your finances by opening different types of accounts in several currencies. A common architecture includes: one or more checking accounts in US dollars for main flows, an account in Cambodian riels for daily expenses and QR code payments, as well as savings accounts or term deposits to lock up part of the funds at attractive rates. For expatriates with a strong savings capacity, the high rates on dollar term deposits offered by some local banks can be an attractive complement to a broader international investment strategy.
For transfers, the combined use of a local bank well connected to the SWIFT system and a fintech like Wise allows, in many cases, to optimize the cost and speed of flows, while maintaining good visibility on exchange rates. Using an international card for occasional withdrawals or targeted payments complements the setup but should no longer be the backbone of the financial strategy.
It is necessary to inquire about tax obligations in your country of origin and the treatment of income in Cambodia. The non-participation in CRS facilitates banking confidentiality but does not exempt you from reporting obligations in your country of origin, especially for nationals of countries taxing based on citizenship, like the United States.
In the background, it must be kept in mind that the Cambodian system continues to transform. The de-dollarization movement, the rise of Bakong and QR codes, the integration of cross-border payments with neighboring countries, the development of a local stock exchange and a richer insurance offering are all signals that the local financial landscape remains in motion. For the expatriate, the key is therefore to stay informed, favor well-regulated institutions, and design a flexible banking architecture, capable of evolving with the country.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
