Legal Update: Joint Statement on the Prevention and Suppression of Illicit Investment Projects in the Securities Sector
Applicable Industries: Investment

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.


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.


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:

  • or Hotline 117; or
  • contact the Department of Anti-Cybercrime of the GCNP via phone number: 023 726 822; or
  • contact SERC via email or phone number 011 847 779 (telegram).

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.