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The Securities and Exchange Regulator of Cambodia ("SERC") and the General Commissariat of National Police ("GCNP") issued a Joint Statement on March 12, 2024, in which they addressed the alarming increase in fraudulent and unauthorized investment schemes ("Joint Statement"). Advertised on contemporary platforms like Facebook and Telegram, these schemes make false claims of substantial returns or profits in lieu of obtaining the appropriate authorization from the relevant authorities.
License
Fundraising initiatives targeting the general public via digital platforms (e.g., Facebook or Telegram) in support of specific investment schemes that meet the criteria for collective investment schemes ("CIS") must obtain a license from the SERC. In the absence of an appropriate license issued by the SERC, such an investment would be considered fraudulent under the Criminal Code of the Kingdom of Cambodia and unlawful under the Law on Issuance and Trading of Non-Governmental Securities.
Monitoring
SERC and GCNP will collaborate in the surveillance of illicit investment activities and inform the public about investment endeavors that fail to acquire the appropriate licenses. Additionally, members of the public may notify the GCNP of any suspicions by:
In addition to the primary points presented in this Joint Statement, it is noteworthy to mention that in order to raise public funds in the securities sector (including CIS, equity, debt, derivatives, and other financial instruments), the Law on Issuance and Trading of Non-Governmental Securities stipulates that the secured licenses and approval of the SERC are required. In accordance with Prakas No. 003/18 on Granting Licensing and Management of Collective Investment Scheme Business, investments that are made available to the public and fall under the purview of CIS are required to obtain licenses from SERC and receive approval.
Advance Grand Formula Co., Ltd is licensed audit firm from Accounting and Auditing Regulator (ACAR Decision N0. 014), member audit firm of Kampuchea Institute of Certified Public Accountants and Auditors (license number C-00085) and tax agent from General Department of Taxation (license number TA202204002).
This Publication is intended for general guidance only and should not form the basic of specific decisions.
Should you need any further information or support, please contact us at: accounting@advancegroupkh.com (accounting), audit@advancegroupkh.com (audit), tax@advancegroupkh.com (tax) and number and telegram 085 36 8888 and 070 399 888.
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