The 2015 Law on Associations and Non-Governmental Organizations (LANGO) limits what a local or foreign NGO may do in Cambodia. The main prohibitions, and the consequences of breaching them, are set out below.

Operating without registration

A local NGO or association may not carry out activities until it is registered with the Ministry of Interior. A foreign NGO may not operate without a Memorandum of Understanding with the Ministry of Foreign Affairs and International Cooperation. An unregistered organization must stop its activities immediately; if it does not, it faces a fine of KHR 5 million to KHR 10 million, and repeat cases are referred to the courts (Article 32). Foreign nationals working for such an organization may be expelled under the Law on Immigration (Article 34).

Generating or sharing profits

An NGO must operate without generating or sharing profits (Article 4). It may not distribute surplus funds to its founders, members or staff. Commercial activity can also put the organization’s exemption from tax on income at risk.

Political activity

Local NGOs, foreign NGOs and foreign associations must maintain neutrality toward political parties (Article 24).

Acting outside the statutes or MOU

A local organization may act only within its registered statutes. A foreign NGO may act only within its MOU and approved projects. New activities require an amendment first, and changes to the statutes must be reported to the Ministry of Interior within 15 days.

Activities that endanger security or public order

Activities that endanger security, stability, public order, national unity, culture or traditions are prohibited. They are grounds for refusing registration (Article 8), for removal from the register (Article 30) and for termination of a foreign NGO’s MOU.

Unlawful sources of funds

The resources of a local NGO are limited to its own assets, lawful gifts and other lawful income (Article 18). A foreign organization’s resources must come from lawful sources (Article 19). Money laundering, terrorist financing and other criminal conduct are punished under the criminal law (Article 36).

Undisclosed bank accounts and missing reports

An NGO may not operate bank accounts in Cambodia that have not been disclosed to the authorities, and must file its activity and financial reports on time (Articles 10, 17 and 25).

Land ownership by foreign NGOs

Under the Constitution and the Land Law, only Cambodian citizens and Cambodian legal entities may own land. A foreign NGO cannot own land in its own name and should hold its premises under a lease. See Long Term Lease.

Consequences

• Local organizations – for breach of the bank account, reporting or neutrality requirements: a written warning, then suspension for up to 90 days, then removal from the register. For acting contrary to the statutes: a notice or suspension for up to 30 days, then removal (Article 30).
• Foreign NGOs – a written warning, then termination of the MOU (Article 33).
• Appeal – a local organization may appeal to the court within 30 working days of receiving notice of the decision (Article 31).

See also NGO Registration and INGO Registration.