Cambodia Investment Review
The nationwide branch network commercial bank, KB PRASAC Bank, is expanding its specialized transaction management portfolios by scaling tailored Retention or Escrow Service, offering individual and corporate clients a regulated mechanism to safeguard high-value deals. Designed primarily to serve the Kingdom’s real estate and corporate trade sectors, KB PRASAC Bank’s escrow account act as an independent third-party shield against counterparty default and financial fraud.
The introduced escrow framework establishes a structured legal and operational buffer. Under the
standard arrangement, buyer funds are held securely in a dedicated bank-administered Trust Account until all predefined conditions—such as soft/hard title deed verification, regulatory clearance, or milestone fulfillment—are satisfied by the seller. Funds are subsequently released directly to the beneficiary upon joint confirmation or document verification.
As international investments and institutional property transactions scale within Cambodia, traditional direct-payment methods present heightened risks for both transacting parties. Escrow mechanisms eliminate the risk of premature payment releases for buyers while providing sellers verifiable assurance that transaction funds are committed and verified by the licensed banks.
The key transaction types supported by KB PRASAC Bank’s escrow offerings include purchase and sell real estate, goods and services, shares and stock, construction contract/project and other related escrow services. Clients are able to request the use of Escrow service in Khmer Riel or US Dollar for the period of up to 60 months.
KB PRASAC Bank’s escrow service aligns with the evolving regulatory frameworks overseen by the Trust Regulator (TR) and the National Bank of Cambodia (NBC). The bank offers an escrow service adhering to strict compliance guidelines, customer identification mandates, and legal verification of Sale and Purchase Agreements (SPAs) before setting up the transaction.
To access the service, both local and foreign transacting parties submit standard documentation, including national ID cards or passports with valid visa, corporate registration certificates, and legally certified transaction agreements.
The rollout of KB PRASAC Bank’s escrow service marks a significant step forward in standardizing corporate and real estate financial practices across Cambodia.
For more information, please visit https://www.kbprasacbank.com.kh/en/personal/service/escrow-service/ or contact the Call Center at 086 999 911 or 023 999 911 or visit any nearest branch.
