Cathay United Bank (Cambodia) Corporation Confirms Trust Regulator Approval To Offer Escrow Services
Cathay United Bank (Cambodia) Corporation (CUBC), a subsidiary of Cathay Financial Holdings, received approval from Cambodia's Trust Regulator in January 2025 to offer escrow services in the Kingdom.
A press release added that this “milestone underscores CUBC's commitment to fostering economic growth across diverse sectors and boosting investor confidence in Cambodia.”
Kevin Yeh, President of CUBC, said of the importance of being approved for the escrow service: "Cambodia's economy continues to grow steadily, with real estate transactions being a key focus of the local market. Given the large transaction amounts involved, ensuring secure payments between buyers and sellers is crucial. This escrow service provides a secure platform for holding and disbursing funds. CUBC will safeguard the transaction funds and release them to the seller only after all contractual conditions are met, ensuring the smooth completion of transactions. We have high expectations for the future growth of escrow services."
In 2023, CUBC became the first Taiwanese bank in Cambodia to offer KHQR payments by integrating with the National Bank of Cambodia's Bakong system and for eligible corporate customers, provides a dedicated support team and video customer service to streamline processes and save time.
There are more than 65 financial institutions providing mobile banking services in Cambodia according to reports by the National Bank of Cambodia and some leading banks offer escrow services for secure financial transactions.
As Cambodia's economy diversifies and grows, the demand for formal financial mechanisms like escrow services increases, particularly in real estate transactions where trust is paramount
Trusts in Cambodia
Cambodia's Law on Trust was enacted in 2019 followed by the establishment of the Trust Regulator in 2021. Trusts in Cambodia offer foreigners a secure method of investing in real estate and land and over recent years the trust business in Cambodia has seen significant growth.
The trust market has increased to more than 1,000 cases by October 2024 with a total value of approximately US $1.65 billion – between 2022 and 2023, the value of funds invested in the various trusts nearly doubled and Real estate and property-related trusts account for a majority of commercial trusts by Q3 2024.
In addition, the online Trust Registration System was launched in October 2024 and H.E. SOK Dara, Director General of the Trust Regulator confirmed majority of trust cases in Cambodia are commercial trusts with Escrow Services accounting for 157 cases (US $213 million) in the second half of 2024.