The Cambodia Trust Regulator organised the Trust Forum 2024 under the theme “Trust: Beyond a Platform for Trust Building” providing updates on the latest developments in the Kingdom’s trust sector, and importantly launched the ‘Trust Registration System’ at the Sokha Hotel in Phnom Penh on October 30, 2024.
H.E. SOK Dara, Director General of the Trust Regulator provided welcoming remarks and a synopsis update of the trust market, while opening remarks were provided by H.E. Ros Seilava, Secretary of State, Ministry of Economy and Finance (MEF).
The Director General of the Trust Regulator stated that the Trust Forum 2024 aimed to disseminate and share knowledge, experiences, and best practices in the trust sector, and to foster connections and cooperation between key trust operators in the Cambodian market.
“The establishment of the trust sector in Cambodia, as well as the Trust Regulator, follows a comprehensive consideration by the Royal Government and the Ministry of Economy and Finance, which aligns with Cambodia’s Financial Sector Development Strategy 2011-2020 and the revised version 2021-2025,” he said.
H.E. Ros Seilava added that trust can cover many areas, not just the banking or microfinance sectors, but also insurance, education, real estate, securities, and other sectors. The development of the trust sector is a priority for the Royal Government, aligning with the Pentagonal Strategy Phase I.
He emphasised the benefits of the trust sector for Cambodia, which would:
- Increase domestic investment, thereby boosting national tax revenue.
- Foster financial sector diversification in response to market demands in the Kingdom.
Additionally, it supports macroeconomic management and global anti-money laundering (AML) and counter-terrorist financing (CFT) efforts, as well as preventing financing of the proliferation of weapons of mass destruction (WMD).
Launch of Cambodia’s Trust Registration System
During the forum, the Trust Regulator also officially launched the ‘Trust Registration System’ which aims to facilitate efficient registration, management, and regulatory compliance for trusts.
According to Ros Seilava, this system will enable trustees to handle processes like trust creation, renewals, and terminations online, enhancing accessibility and transparency.
Cambodia’s Trust Market Development 2024
During Cambodia’s Real Estate Expo 2024, the Trust Regulator reported that by October 17, 2024, the total number of trusts was 1,042 cases amounting to USD 1.68 billion, with the majority tied up in commercial trusts:
- USD 1.16 billion in commercial trusts (1,021 cases)
- USD 369 million in financial trusts (9 cases)
- USD 2.3 million in individual trusts (8 cases)
- USD 122 million in public trusts (3 cases)
- USD 1.5 million in social trusts (1 case)
According to the data shared by the SOK Dara during the MOU signing between the Trust Regulator and Stronghold Trustee for developing carbon credit trusts in August 2024, the majority of trust cases in Cambodia at the time were within commercial trusts, covering:
- Real Estate – 736 cases (over USD 700 million)
- Escrow Services – 157 cases (over USD 213 million)
- Fixed Deposits – 30 cases (over USD 10 million)
- Pension Funds – 38 cases (over USD 63 million)
- Shareholding – 3 cases (over USD 92 million)
- Green Bonds – 2 cases (USD 1.2 million)
According to the Trust Regulator, currently, there are 13 companies that have been granted trust licences, 21 commercial banks approved as Safeguard Keeping/Escrow Services Operators, 68 individual trustees (35 independent individual trustees and 33 individual trustees from trust companies), 16 valuation companies, and 15 auditing companies.