How to Send or Receive Money in Cambodia

Sophea, a young Cambodian living in Bangkok, balances her life between studying international business and working as a waitress in a café. Despite the hustle and bustle of her life in Bangkok, her thoughts regularly turn towards her family in Phnom Penh. Her parents, as well as her younger siblings, depend on her financial support to meet their daily needs.

For Sophea, transferring money is not just a financial act; it’s a vital link that connects her to her loved ones, providing them with essential support that transcends borders. Every dollar she saves is carefully allocated to cover medical expenses, food costs, or even the tuition fees of her siblings.

Remittances are crucial for the survival of Sophea’s family, and her case is not unique. Thousands of Cambodians living in Thailand, the United States, or elsewhere, face similar challenges.

This article is designed to offer a comprehensive guide, not only to understand the legal and tax aspects related to these transactions but also to choose the most suitable transfer method for your specific needs, whether for education or healthcare. We will explore the fastest, least expensive, and most appropriate options for sending or receiving money in Cambodia.

What are the different ways to send and receive money in Cambodia?

Cambodia has made significant progress in financial inclusion, partly due to initiatives supported by national policies and the adoption of innovative financial technologies. 

The National Financial Inclusion Strategy 2019-2025, adopted by the Royal Government of Cambodia, aims to increase access to formal financial services and reduce financial exclusion, particularly among women, from 27% to 13% by 2025. 

The rise of digital banks and financial technologies plays a key role in enhancing financial inclusion in Cambodia. And that is precisely what we will look at in this section.

1 – Traditional banks

Traditional banking services are among the reliable and secure options for sending and receiving money in Cambodia.

Advantages:

• Security and trust: Banks are regulated by financial oversight bodies, offering a high level of security and protection for your funds.

• Additional services: In addition to money transfers, banks offer a range of financial services, such as investment advice, loans, and credit facilities.

• Direct international transfers: You can send money directly from your bank account to one in Cambodia, simplifying the process without the need for intermediaries.

Disadvantages:

• High costs: Transfer fees and exchange rates applied can be particularly high, and additional costs may accumulate, especially for frequent or large transfers.

• Slower process: Processing international transfers can take several business days, which is not ideal for urgent needs such as healthcare.

• Complexity and documentary requirements: Sending funds abroad via banks may require comprehensive documentation and administrative formalities, making the process sometimes cumbersome.

2 – Online Services and Applications

Online services such as Wise (formerly TransferWise), TrueMoney, WorldRemit, PayPal, and Cash App have revolutionized the way we send and receive money around the world.

They offer a convenient and often more economical alternative to traditional money transfer methods, suited to our digital age.

It is important to note that the country has also turned towards online banking, notably with Wing Bank.

Wing Bank has an extensive network of agents and merchants, facilitating access to financial services for a large part of the population, including in less-served rural areas.

Further on in this article, you will discover our ranking of the fastest and least expensive ways to send or receive money in Cambodia.

Advantages:

• Speed and ease of use: These platforms enable quick, often instant, money transfers with a simple operation online or via a mobile app. Their intuitive user interface makes the process accessible to everyone.

• Cost-effective: The fees charged by these services are generally lower than those of traditional banks, particularly for international transactions. They also offer competitive exchange rates, which can lead to significant savings.

Disadvantages:

• Necessity of an account on the same platform: To receive money via these services, the recipient often needs to have an account. This can be a barrier for those who are not accustomed to using such services or who do not have access to technological means in Cambodia. Sometimes, for withdrawals, you might be limited to the banks or services that your loved ones can access.

• Lack of customization for specific needs: These services are not specifically designed for needs such as healthcare access. They do not provide the same assurance that each penny transferred will be used for medical purposes or to improve the well-being of loved ones.

• Lack of transparency and tracking: While these platforms offer some transparency regarding fees and the transfer process, they do not provide a detailed mechanism to track how the funds are specifically used once received. This is crucial for donors who want to ensure that their financial support is directly allocated to specific needs, such as healthcare for their loved ones.

• Geographic limitation: Often, these applications are designed to function primarily in a single country or a specific region, which poses a problem for immigrants wishing to financially support their loved ones in Cambodia.

• Data security: Although these applications take measures to protect users’ financial information, concerns about the security of personal data remain.

3 – Bakong and the Growing Blockchain

As previously mentioned, Cambodia has innovated in the field of digital payments by launching Bakong in 2020, a digital currency initiative driven by the National Bank of Cambodia (NBC) based on blockchain technology.

Bakong operates in both Cambodian riel and US dollars, reflecting the widespread dollarization of the Cambodian economy.

This digital payment system, often described as a central bank digital currency (CBDC), functions more like a tokenized deposit system where the currency is a liability of the commercial banks using the system.

Bakong enables domestic and cross-border transactions, thus facilitating purchases at merchants connected to the international Alipay+ network through recent agreements.

In July 2023, a partnership with Alipay was announced, allowing QR transactions in Cambodian riel at millions of merchants worldwide.

Since its launch, Bakong has seen rapid adoption with about 10 million accounts activated, covering a large portion of the Cambodian population.

This system not only contributes to financial inclusion by enabling simple monetary transactions via smartphone, even for those without a bank account, but also modernizes the Cambodian economy by aligning its payment systems with international standards.

The Bakong initiative has also expanded its features to include an international payment network, with links established to payment systems in several ASEAN countries and beyond, demonstrating the potential of blockchain technology in the regional and global financial sector.

However, challenges related to internet access and digital literacy persist, particularly in rural areas.

Out of 16 million inhabitants, this still leaves 6 million Cambodians excluded from this financial system due to ongoing obstacles in their daily lives.

3.1 – The solution of buying Online Health Credits

If you want to support your loved ones in Cambodia, especially in the health sector, health credits offer a solution that combines speed, security, and positive impact.

KimboCare was born from the lived experience of two African immigrants faced with the challenges of supporting the health of their loved ones back in Africa while navigating their own lives in the United States and Europe, a story similar to that of Sophea mentioned in the introduction.

This story is not unique, but our response to this challenge is entirely so.

KimboCare was created to transform the way we care for our families from a distance, whether in Cambodia or other developing countries.

Now, you can purchase digital health credits so your loved ones can access preventive and curative care services without needing a bank account or a digital currency platform.

This process is simple, direct, and can be done from anywhere, at any time. These credits will be immediately usable by patients who will be welcomed in medical facilities that are always verified and controlled by KimboCare.

Rather than simply sending money, often with no guarantee that it will be used for necessary healthcare or without being able to ensure the quality of care received, health credits offer a transparent and secure solution.

You get real-time tracking of the medical services purchased with the health credits, ensuring that every cent truly contributes to the health and well-being of the recipient.

The commitment lies in empowering vulnerable populations, particularly women and children, to access quality healthcare, thus contributing to a longer and healthier life.

The utility of health credits lies in protecting your data with advanced encryption protocols, offering you additional peace of mind while contributing to the health of your loved ones.

The fastest ways to send or receive money in cambodia

To send or receive money quickly in Cambodia, several options are available to you, each with its own specifics, advantages, and limitations.

It is crucial to choose the method that best suits your needs, while considering speed, costs, and particular requirements.

Service	Transfer Fees	Exchange Rate	Delivery Time	Payment Options
Western Union	High	Average	Instant to 1 day	Bank transfer, credit card, cash
Remitly	Medium	Competitive	Few hours to 1 day	Bank transfer, credit card
WorldRemit	Low to Medium	Competitive	Instant to 1 day	Bank transfer, mobile wallet, cash pickup
Wise (formerly TransferWise)	Low	Very Competitive	Instant to 1 day	Bank transfer, debit card
TrueMoney	Low	Competitive	Instant	Mobile wallet, cash pickup
Wing Bank	Low	Competitive	Instant	Mobile wallet
KimboCare	Low	Transparent	Instant	Credit card, digital wallet

Health Credits

By purchasing health credits, you can ensure that your financial support is used directly for quality healthcare services.

For urgent health needs, prioritize services offering instant or same-day transfers. Some platforms like KimboCare directly inform the patient via SMS or a call.

Not only does this allow for an efficient and fast transfer of funds, but it also ensures that your money contributes to a vital cause: the health of your loved ones.

Purchasing health credits frees you from the uncertainties and delays often associated with traditional money transfers.

When you buy health credits for a loved one in Cambodia, the recipient can access necessary care without delay, thanks to a network of reliable and verified medical partners.

Moreover, you benefit from complete transparency and real-time traceability of the delivered medical services, which is not always the case with other money transfer methods.

Online Services and Mobile Applications

Online services and mobile applications are often the fastest for money transfers.

Platforms like PayPal, Bakong, Wing Bank, Western Union, World Remit, and TransferWise (now Wise) enable nearly instantaneous transfers.

However, it is important to note that these speeds can vary depending on the amount sent and the necessary security verifications.

Some platforms limit the amount you can send over a given period without additional verification, while others may require detailed information about the recipient for compliance reasons.

International Banks

International bank transfers can also be fast, especially if both parties use the same bank or banks with cooperation agreements.

However, interbank transfers may be subject to delays due to stricter verification processes and the need to go through clearing systems.

Amount limits and specific requirements vary significantly from one bank to another.

This is particularly important in Cambodia, where most households face restrictions on withdrawals and are sometimes heavily taxed.

The least expensive ways to send or receive money in Cambodia

Sending or receiving money from a loved one involves adopting a strategic approach to minimize costs while ensuring the security and efficiency of transactions.

Online services and mobile apps often offer more favorable rates than traditional banks, thanks to their reduced cost structures.

Platforms like WorldRemit and TrueMoney provide economical solutions for money transfers.

WorldRemit is particularly competitive for small amounts with reduced transaction fees and favorable exchange rates, enabling fast and economical transfers.

However, depending on whether you make a transfer using your bank, your credit or debit card, a cash withdrawal in person, or mobile money, you will pay between $22 and $26 for transfers of $999.

When the financial need is significant, the charges can quickly add up.

And a minor inconvenience is that with WorldRemit, you can only transfer a maximum of $999 at a time.

The exchange rate also plays a crucial role in the total cost of an international money transfer. Users must navigate between the official rates and those offered by the transfer platforms to find the most economical options.

Transferring money to Cambodia has some peculiarities that distinguish it from other Southeast Asian countries.

In particular, when using online services like Wise, it is not possible to directly receive Cambodian riels (KHR) due to restrictions on the currencies available on these platforms.

However, this does not mean that it is impossible to transfer funds efficiently. A common solution is to use the US dollar (USD), which is widely accepted and used in Cambodia, as the receiving currency.

You can send USD, which can then be deposited into a Cambodian bank account or converted into KHR locally.

This is a much longer and more costly process, especially because with Wise, in addition to the transfer fees disclosed by the service (which vary depending on the amount), intermediary banks will charge an additional $10 to $30 simply for transferring your money to Cambodia.

Before choosing a service, compare transaction fees, applied exchange rates, and look for reviews to ensure reliability and security.

Opting for platforms that offer a transparent exchange rate and as close as possible to the market rate without hidden fees can greatly reduce the costs of money transfers to Cambodia.

Is Zero-Fee Money Transfers Possible?

As we have seen, platforms like TransferWise (now Wise) and WorldRemit are known for their competitive costs and transparency.

While the offer of fee-free money transfers may seem attractive, it can often be misleading.

Money transfer companies need to generate revenue to operate, and if they do not impose explicit transfer fees, they may recoup these costs in other ways.

This can include applying less favorable exchange rates, meaning your money loses value along the way, or introducing additional fees once you engage in the transfer process.

If you consider withdrawing money directly from an ATM in Cambodia to avoid high fees from banks and money transfer services, beware: this method also involves costs.

Each ATM withdrawal in Cambodia is typically subject to fees ranging between $4 and $6, depending on the bank used.

This means that even though this option may seem convenient, it does not eliminate the additional fees associated with accessing your money abroad.

It is therefore important to be vigilant about hidden fees, which can appear as additional service charges or indirect costs.

Reading the terms of service carefully can save you from unpleasant surprises.

When the purpose of your money transfer is specifically to support the healthcare needs of your loved ones in Cambodia, purchasing health credits presents itself as an innovative solution offering affordable costs.

This guarantees that your loved ones receive the necessary healthcare, avoiding unnecessary fees or fluctuations in exchange rates.

You know precisely what care has been provided, when, and at what cost, ensuring that your contribution has the desired impact.

Moreover, no money transfer is necessary, so you minimize the risk of hidden fees.

Transferring Funds to Cambodia to Meet Various Needs

Sending money to Cambodia goes beyond a mere transaction; it represents a show of support, love, and investment in the future of your loved ones.

Whether it’s promoting access to education or ensuring the health of the family, each Riel sent carries with it the potential for change and empowerment, allowing your loved ones to pursue their dreams and build a better future for themselves and their communities.

Education and Employment

Investing in education is a priority for many families.

Money transfers intended to cover tuition fees, books, equipment, and supplies can be made through banks or online transfer services that offer direct delivery options to educational institutions or specific bank accounts.

This direct approach minimizes intermediaries and ensures that the funds reach their intended purpose.

If the unemployment rate is extremely low in Cambodia, it is mainly because most Cambodians cannot afford not to work, and some have had to accept vulnerable jobs.

It is important to know that about 75% of the population earns below KHR 1,000,000 (approximately 246 dollars).

Yet, a family may need at least 150 to 300 dollars per month for basic expenses, including rent, food, utilities, transportation, and healthcare.

This is particularly true for Sokha, a young Cambodian student whose family lives in a rural area with very limited income.

Like many young people in Cambodia, she faces significant obstacles, such as limited access to quality educational resources and the need to work to help her family.

They depend on the money transfers sent by her uncle, Ath, who works as a computer engineer in London.

Ath, aware of the precarious situation of Sokha and their family remaining in Cambodia, strives to regularly send money.

Each month, he transfers about 400 dollars to his family.

This amount, though modest in his new country of residence, represents more than what Sokha could earn in Cambodia.

This financial aid is vital not only for supporting Sokha’s education but also for allowing her to focus on her studies without worrying about financial pressures.

This type of support is crucial for helping young Cambodians overcome financial barriers and continue their education, thus offering a path to a better and more stable life.

Healthcare

When it comes to taking care of loved ones in Cambodia, the greatest concern for expatriates is often ensuring that the financial aid sent is properly used, especially for healthcare.

This concern is justified given the challenges of finding a competent and reliable healthcare professional, particularly in emergency situations.

Additionally, a large portion of the Cambodian population lives in decentralized villages, far from major hospital systems and medical equipment.

The lack of transportation and significant costs hinder an individual’s ability to afford and access healthcare.

We particularly think of the story of Srey Pov, a single mother in Phnom Penh, who, like many, faces difficulties in accessing quality care.

Despite improvements in healthcare infrastructure, accessing affordable care remains a major challenge. The disparities in care quality, inconsistent standards, and variability in healthcare providers’ expertise further complicate the situation.

When Srey Pov was diagnosed with cardiovascular disease, she found herself at the mercy of an unreliable system that sidelined her.

Her brother, Samnang, an expatriate in the United States, felt powerless about his sister’s situation in Cambodia.

However, everything changed when a friend in New York told him about KimboCare.

This platform allowed expatriates like him to directly pay for quality healthcare for their loved ones in their home country, while ensuring transparency and follow-up.

Intrigued and eager to support his sister more effectively, Samnang quickly signed up and began using the service for Srey Pov’s care.

Thanks to KimboCare, Srey Pov was able to undergo a series of necessary medical tests to accurately assess her health condition.

Not only were the results clearly communicated, but a detailed treatment plan was established, transforming her care experience.

She finally felt listened to and cared for, with monthly visits scheduled with her healthcare team, ensuring regular and reassuring follow-ups, an expense she could not have otherwise afforded.

This is where KimboCare makes a difference by enabling expatriates to directly pay for preventive and curative health services for their families in Cambodia.

We offer you more than just a platform; we offer you peace of mind, knowing that your financial support directly translates into quality healthcare.

Instead of simply sending money, you can purchase health credits that will be used exclusively for medical care from reliable and verified local medical partners.

This method not only guarantees that your funds are used as intended but also eliminates the stress and uncertainty associated with managing healthcare from afar.

Moreover, KimboCare steps in as needed to coordinate communications with medical staff to ensure the best possible experience for your loved ones.

Thus, you can easily identify reliable medical facilities and, most importantly, follow the care and receive feedback from your loved ones themselves.

Nutrition

Ensuring access to adequate and nutritious food is essential, especially in regions where the quality and availability of food can be hampered by economic constraints.

Sending money to cover the nutritional needs of the family not only supports their physical well-being but also contributes to their happiness and daily security.

Cambodian cuisine, rich in flavors and traditions, reflects the cultural diversity of the country. 

Basic ingredients like lemongrass, galangal, tamarind, and lemongrass are essential for creating dishes that nourish the souls of local communities as much as their bodies.

Take, for example, Fish Amok, an iconic Cambodian dish. This creamy fish curry, made with coconut milk and kroeung leaves, embodies the harmony of cultures and flavors that characterize Cambodia.

This dish is more than just food; it’s a connection to family and cultural heritage, reminding Cambodian expatriates of the flavors of their youth.

Soups like Samlor Machu and various curries also play a central role in the daily diet, often accompanied by various meats and vegetables, offering comfort to those far from their homeland.

For Cambodians living abroad, sending money home is often more than financial aid; it’s a way to ensure access to these traditional ingredients and to support culinary practices that keep traditions alive.

Each money transfer is a means to perpetuate these traditions, support local communities, and maintain an essential connection with their cultural heritage, thereby strengthening crucial social and family ties essential for the well-being of families remaining in the country.

Safety Tips for Making Money Transfers to Cambodia

In an ideal world, sending and receiving money across borders would be as simple and secure as making a phone call.

However, the reality of international money transfers can sometimes be complex, with risks of fraud and scams targeting the most vulnerable individuals.

1. Verify and Validate Your Fund Destination

Ensure that the money you send reaches the person you intend to help. This may seem obvious, but in urgent situations, mistakes can happen.

Double-check the recipient’s contact details and information before proceeding with any transfer.

We advise opting for recognized and well-established money transfer services that provide complete transparency about the journey of your funds throughout the process.

2. Do Not Trust Overly Tempting Offers

Scammers often use the promise of extremely favorable exchange rates or zero transaction fees to lure their victims.

If an offer seems too good to be true, it probably is.

Similarly, a common scam tactic is to create a sense of urgency, like a fake health problem of a relative, to push you to send money quickly without verification.

3. Never Share Your Personal Information

Be vigilant with your personal and financial information. Fraudsters may try to obtain it through phone calls, emails, or social networks.

A legitimate company will never ask you to provide sensitive information through these channels.

It is best to turn to a program solution where data is protected by advanced encryption protocols and you have access control.

4. Ensure You Track Your Funds

It is very important to have a record of each money transfer as it can prove invaluable in case of issues.

These records allow you to trace and dispute any suspicious transactions.

After sending money, check with your recipient to confirm the receipt of the funds.

This simple step can help you quickly detect potential fraud.

The best assistance you can get for sending or receiving money from Cambodia is from an agency that ensures every penny is invested in specific needs (such as healthcare costs), with zero risk of diversion by unreliable intermediaries.

Overview of Money Transfer Laws in Cambodia

Cambodia continues to experience sustained economic growth, with a projected growth rate of 6.5% for 2023. This growth is partly due to a significant increase in merchandise exports and foreign direct investment inflows.

The post-pandemic economic recovery is well underway, although the country remains vigilant about the domestic and external challenges that could affect this progress.

Today, money transfers are essential to Cambodia and represent 8.9% of its GDP.

Remittances from Cambodian migrant workers increased from 1.15 billion dollars in 2021 to over 2 billion dollars in 2023.

They are the third highest in ASEAN in terms of share of national GDP, after the Philippines and Vietnam.

Currently, it is estimated that nearly 63% of these aids come from Thailand, as many Cambodians have gone to work in this country, just as many have moved to South Korea, Malaysia, Japan, or Singapore.

Cambodia uses the riel as its official currency, but the US dollar is also widely accepted and used for transactions, which facilitates international money transfers.

International money transfers play a vital role in the Cambodian economy, with many Cambodians living abroad sending money back to their families in the country.

Recently, the government of Cambodia has enacted strict laws to combat money laundering and terrorism financing.

These laws require entities such as banks, investment companies, and money transfer services to regulate their activities and maintain detailed information about their clients.

Moreover, cash transactions above a certain threshold must be reported to the Cambodia Financial Intelligence Unit (CAFIU).

For expatriates and immigrants making money transfers, these laws imply increased surveillance and strict reporting requirements.

It is crucial to use recognized and regulated transfer channels to avoid legal complications and delays.

Money transfer services must also ensure compliance with these regulations to operate in Cambodia.

Tax Implications for Sending or Receiving Money in Cambodia

In 2023, Cambodia enacted a new tax law that consolidates 15 types of taxes under a single legislation. This law aims to minimize tax leakage and strengthen compliance and penalty measures in case of tax fraud.

When sending money to support your family in Cambodia, it is essential to understand the tax implications of these transfers to avoid any issues with the tax authorities.

According to the current regulations, money transfers between individuals for personal reasons, such as family support, are generally not taxed.

However, if you exceed certain limits or if the funds are considered income for the recipient, there could be tax implications to consider.

Additionally, for large amounts, it may be necessary to declare these funds to the Cambodian tax authorities to ensure transparency and avoid accusations of money laundering, especially in the context of strengthened laws against money laundering.

Article 12 of the new laws, enacted by King Norodom Sihamoni, states that cash transactions exceeding a certain amount must be declared, as well as those flagged by the Cambodian Financial Intelligence Unit (CAFIU).

We emphasize the importance of understanding these aspects. It not only ensures smooth transactions but also contributes to our mission of providing fair and affordable access to essential services, such as healthcare, for those in need in Cambodia.

With KimboCare, you are not just making a money transfer; you are purchasing health credits for your loved ones, which significantly reduces regulatory constraints.

FAQ

How can I send money to Cambodia in the safest way possible?

To ensure the safety of your money transfer to Cambodia, choose recognized services with robust security protocols. Always check user reviews and ensure the service is regulated by competent financial authorities.

If you want to send money for health expenses, opt for recognized services with strong security protocols. Our platform ensures that each financial partner adheres to high security standards, thus ensuring that your funds reach your loved ones safely.

Are money transfers to Cambodia taxed?

According to current regulations, money transfers between individuals for personal reasons, such as family support, are generally not taxed. However, if you exceed certain limits or if the funds are considered income for the recipient, there could be tax implications to consider.

How long does a money transfer to Cambodia take?

The transfer time can vary depending on the service used. Electronic transfers can be instantaneous or take a few hours, while traditional methods like bank transfers may take several business days. For urgent health needs, prioritize services that offer instant or same-day transfers. Platforms like KimboCare directly inform the patient via SMS or a call.

What are the typical fees associated with sending money to Cambodia?

Fees vary widely depending on the chosen service, the amount sent, and the payment method. Some services charge a percentage of the transferred amount, while others apply fixed fees. Look for options that offer total transparency on fees to avoid surprises.

Are there any amount limits for sending money to Cambodia?

Yes, most money transfer services impose limits, which can vary depending on the chosen transfer method and the service’s regulations. It’s also important to note that your recipients may have bank withdrawal limits.

It’s essential to check these limits before making a transfer, especially if you plan to send large sums for needs like covering medical expenses.

How can I ensure I get the best exchange rate when sending money to Cambodia?

Compare the exchange rates offered by different services before making your transfer. Some services allow you to lock in a favorable exchange rate in advance or offer more competitive exchange rates for larger amounts. Be wary of hidden fees that can affect the final amount received!

How can my loved ones in Cambodia receive money?

Recipients in Cambodia can receive money via direct deposits into their bank accounts, cash withdrawals at local service points, or even, for some services, home delivery. Make sure to choose a reception method that best suits your recipient in terms of convenience and safety.

As for health credits, each credit purchased can then be provided to your loved ones for access to quality care in approved medical facilities.