NBC revokes Tian Xu payment service licence

NBC revokes Tian Xu payment service licence

The central bank didn’t disclose why it revoked the license, saying only that the move followed relevant laws and regulations.

The National Bank of Cambodia (NBC) has revoked the payment service provider licence of Tian Xu International Technology Plc, the company operating CoolCash Cambodia, bringing the total to six financial institutions affected in nine months.

According to a notice released on Friday, NBC revoked Tian Xu International Technology Plc’s payment service provider licence on August 3, more than two years after issuing it on May 27, 2024.

The notice did not state the reason for the revocation, saying only that the decision was made in accordance with applicable laws and regulations.

The central bank appointed Morisonkak MKA Audit-Accounting as the liquidator for Tian Xu International Technology Plc, pursuant to Article 68 of the Law on Banking and Financial Institutions.

The company will oversee the liquidation process, with repayments to customers of Tian Xu International Technology Plc to be carried out according to the order of priority established under the Law on Banking and Financial Institutions.

The central bank notice did not mention CoolCash. However, a notice issued by Tian Xu International Technology Plc on July 24 identified the company as ‘CoolCash’ and was posted on the official Facebook page of CoolCash Cambodia.

The July 24 notice said that agents, merchants and customers with balances in their CoolCash accounts were required to submit applications to withdraw their funds and close their accounts by July 30.

The notice instructed those who had not completed the application to visit the head office of Tian Xu International Technology Plc in Phnom Penh on working days, from Monday to Friday, with valid identification and other necessary documents for verification.

It also noted that agents, merchants and customers who failed to submit the CoolCash fund withdrawal and account closure application by the deadline would be subject to separate procedures.

The timing showed that the fund withdrawal and account closure process announced by Tian Xu International Technology Plc was already under way before NBC formally revoked the company’s licence on August 3.

However, the NBC notice did not indicate whether the withdrawal and account closure process announced on July 24 was related to the subsequent licence revocation.

The latest action follows a series of licence revocations involving financial institutions this year, as NBC revoked the licences of Prince Bank Plc and Panda Commercial Bank Plc.

In August, the central bank also revoked the licences of CCU Commercial Bank Ltd, Heng Feng (Cambodia) Bank Plc and HH Bank (Cambodia) Plc, placing the three banks into liquidation.

The latest case differs from the bank closures as it involves a payment service provider rather than a commercial bank, with Morisonkak MKA Audit-Accounting now responsible for handling the liquidation and customer repayments.

khmertimeskh