New Trust Law in Cambodia 

On 02 January 2019, a Trust Law was promulgated by Royal Decree No. NS/RKM/0119/002 (Trust Law). This Trust Law aims to set out rules and procedures to establish, register, manage and control four types of trust which are Commercial Trust, Public Trust, Social Trust, and Personal Trust. This Trust Law contains comprehensive regulations and rules to govern the rights, duties and responsibilities of the trustor, trustee and the beneficiary. It also provides comprehensive understanding on each type of trust and its purpose. 

Commercial Trust is created with an aim to gain profits for the benefit of the trust contributor or any specified person determined by the trust contributor which contains educational fund, pension fund, property saving service, or employee share plan. 

Public Trust is created with the purpose for the benefit of Cambodian people which includes the development of bank and microfinance sectors in Cambodia and other public benefits when relevant regulators nominate trustees to control and protect any funds through conditions determined by trust later or applicable laws. 

Social Trust is created when a trustee gives his/her own property to the trustee for the benefit of society such as for the purpose of culture, education, humanity, religion, or science. 

Personal Trust is created for the benefit of the trustee or specified person determined by the trustee which is an individual who gives his/her property or fund to the trustee for the benefit of his own or other people or the transfer property or fund of the trustee. 

The Ministry of Economy and Finance (MEF) is the competent regulator in charge of supervising such trusts. This Trust Law requires such trusts to be registered with the MEF within 3 months from the date of creating such trusts. However, before registering such trust with MEF, it’s also required to get other relevant regulator’s approval. The detailed conditions and procedures of registering such trusts shall be determined by sub-decree. 

A failure to timely register such trusts or the failure to comply with the regulatory requirements may lead to civil penalties and/or possibly criminal. 

Sithisak Law Office