The Phnom Penh Municipal Administration has issued a 30-day ultimatum for pawn shop owners to renew their business licences.

Failure to comply will result in legal actions leading to the closure of expired businesses, as announced in a notice on August 21 by governor Khuong Sreng.

Coordinating efforts with the Real Estate Business and Pawnshop Regulator and relevant authorities, the administration conducted checks on pawn business locations. Most businesses were found to possess valid licenses either from the regulator or the Ministry of Economy and Finance. However, certain locations were discovered to have expired licences, while others lacked licences altogether.

The inspection also revealed deviations from regulatory and administrative guidelines. Some businesses had kept vehicles and valuable assets as collateral, without proper documentation. This practice diverged from established principles and conditions.

Sreng, in line with the safe village-commune policy, stressed the importance of maintaining safety, security and order. He mandated that all pawnshops holding expired or non-existent licences must apply for one within 30 days.

“If the deadline lapses, we will take legal action to shut down non-compliant businesses,” he warned.

Am Sam Ath, deputy director of rights group LICADHO, said he had observed that certain pawnshops seemed to prioritise personal gains over adherence to legal principles, thereby neglecting public interests and endangering public safety.

Sam Ath emphasised the necessity of stringent inspections before licence extensions. Ensuring that licence holders adhere to terms, conditions and laws is pivotal for maintaining societal security and order, he said while urging authorities to conduct transparent, efficient and corruption-free processes.