Law on Trust

Who it binds

Trusts established in the Kingdom of Cambodia, and their parties. Article 5 identifies three essential parties — settler, trustee and beneficiary — with others able to join, such as a contributor of the trust fund and a replacement settler.

What it requires

• Article 9 divides trusts into four types: commercial, public, social and individual.
• Article 7: where a settler creates the trust, the settler must transfer property or funds to the trustee through a trust instrument certifying the specific purpose and confirming the beneficiary’s identity.
• Article 8: a trust takes effect for implementation when the trustee agrees in writing to accept the appointment.
• Article 6: the trust must have a legal subject and must not be contrary to public order.
• Minimum capital for legal-entity trustees is reported at KHR 6 billion for a public trust, KHR 4 billion commercial, KHR 2 billion social and KHR 600 million individual, with a security bond of 15 percent of minimum capital held at the National Bank of Cambodia. These figures come from professional commentary rather than the statute text and should be confirmed with the Trust Regulator.

What it does not cover

The limits of an instrument decide whether it applies to you, and are rarely published. These are stated from the instrument itself.

• The professional conduct of trustees, which is set separately by Prakas 004 on the Code of Professional Ethics for Trustees.
• The tax treatment of trust income and distributions, which sits in MEF Prakas 192.
• Digital assets. Holding tokens in trust does not convert a trust into a digital asset business, nor exempt one from Prakas 093.
• Banking or payment activity. A trustee is not thereby licensed to take deposits or provide payment services.

Sources

• Law on Trust — Preah Reach Kram NS/RKM/0119/002, English translation (PDF)Trust Regulator, Cambodia · primary source
• Types of Trusts, Trust Registration, and Trust Licenses under the Cambodian Trust LawBNG Legal · professional legal commentary

Related

• 004 — Prakas on the Code of Professional Ethics for Trustees
• 192 — Prakas on Tax Rules and Procedures for Trust
• NS/RKM/0121/003 — Law on the Organization and Functioning of the Non-Bank Financial Services Authority