Cambodia Investment Review

Trust Regulator of Cambodia Provides Latet Updates At IBC May’s General Meeting As Trusts Under Management Hits $1.39 Billion in 2024

Trust Regulator of Cambodia Provides Latet Updates At IBC May’s General Meeting As Trusts Under Management Hits $1.39 Billion in 2024

Cambodia Investment Review

The trust sector in Cambodia has reached a significant milestone with approximately $1.39 billion under management, as revealed during the Trust Regulator of Cambodia provided a market updated at the International Business Chamber (IBC) hosts May general meeting. This meeting, was spearheaded by His Excellency Sok Dara, Director General of the Trust Regulator, and highlighted the critical updates and strategic advancements in Cambodia’s trust framework.

Addressing a gathering of esteemed guests including His Excellency Mey Vann, Secretary of State of the Ministry of Economy and Finance, and Paul Clements, Chairperson of the International Business Chamber of Cambodia (IBC), Director General Sok Dara provided a comprehensive overview of the progress and initiatives under the “Law on Trust” instituted in 2019. This legislation has laid the groundwork for establishing trusts in Cambodia, offering a legal structure that enhances transparency, flexibility, and protection for asset managers and beneficiaries.

880 Trust Accounts Now Registered In 2024

The meeting underscored the substantial growth of the trust sector, with a reported 880 cases now registered, reflecting the active engagement and confidence in Cambodia’s legal and regulatory environment. “The trust framework we have established is attracting considerable domestic and international investment, playing a crucial role in our financial sector’s development and stability,” stated His Excellency Sok Dara.

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In his remarks, His Excellency Mey Vann highlighted the sector’s alignment with international standards, aiming to foster economic resilience and diversification. “Our trust sector has become a fundamental component of our financial system, ensuring that we remain competitive and secure in a global context,” he commented.

IBC May 2024 Meeting at Raffles Hotel in Phnom Penh.

The meeting also focused on the operational achievements and future strategies for the trust sector. Significant progress has been noted in the licensing and regulation of commercial banks providing escrow and retention services, with notable institutions like ACLEDA Bank, ABA Bank, and Maybank Cambodia leading the way. This development not only enhances the security and credibility of trust arrangements but also promotes greater investor confidence.

Questions from the members included the ongoing understanding and clear definitions of tax guidelines as well as real-world practicality of investors existing trusts arrangements and going questions on capital gain implications.

Collaboration Between The Trust Regulator & IBC

Paul Clements of the IBC expressed optimism about the future of trusts in Cambodia, noting the potential for this sector to secure investments and foster economic growth. “The collaboration between the Trust Regulator and the IBC is instrumental in driving forward these regulatory enhancements and ensuring that Cambodia continues to be an attractive destination for international investors,” he remarked.

The Trust Regulator confirmed ongoing plans to expand the trust sector’s capabilities, focusing on education, compliance, and market adaptation to global financial practices. The trust framework’s robustness is expected to attract more foreign investments, particularly in real estate and private equity, which are pivotal for Cambodia’s economic expansion.

As the meeting concluded, the stakeholders reaffirmed their commitment to enhancing trust management practices and leveraging these for broader economic benefits. The trust sector, with its strategic importance and substantial managed assets, is poised to play a crucial role in Cambodia’s ongoing economic development and integration into the global financial system.

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