On 25 August 2025, the Non-Bank Financial Services Authority (“FSA”) issued a Prakas supplementing the existing 2022 regulation on trust registration fees. This new instrument directly impacts trustees and operators of custodial services and safe box keeping services in Cambodia by setting out detailed service fees, renewal procedures, and sanctions.
Key Highlights of this Prakas:
- Key Changes and Fees: Entities registering for a custodial or safe box trust must now pay:
- 20,000 Riels (USD 5) each for establishment and administrative fees,
- 60,000 Riels (USD 15) annually for the registration certificate, and
- 100,000 Riels (USD 25) for amendments to trustees or trust deeds.
The registration certificate remains valid for the term specified in the trust deed, but renewal must be filed at least 30 days before expiry. Importantly, applicants must clearly identify trust property; if the trustor refuses disclosure, trustees bear the burden of verification, which represents a significant compliance duty.
- Compliance Risks and Penalties: The Prakas introduces strict enforcement mechanisms. Trustees that delay annual fee payments face fines ranging from 1 million Riels (USD 250) to 60 million Riels (USD 15,000), with penalties doubling for repeated violations. If damage is caused to beneficiaries or stakeholders, fines may reach three times the value of the loss. These penalties are in addition to potential criminal law consequences.
Administrative sanctions are equally severe, particularly from warnings and license restrictions to revocation of registration or removal of trustees. For many operators, this raises the stakes: non-compliance may now lead to full suspension of business activities.
This update is brought to you by Davies SM Attorneys-at-law.