On December 20, 2023, the Non-bank Financial Services Authority issued Prakas No. 067 on Obligations to Submit Reports, Notify, and Request for Approval of Trustee.

Scope

This Prakas applies to trustee who is granted with a license/approval from the TR to conduct trust operations in the Kingdom of Cambodia.

Submission of reports

Monthly reports of no later than 10th day of the next month;

1. Report on income related to the trust operations;
2. Report on the provision of the trust registration service, if any; and
3. Report on filing and withdrawal of the trust by the trustor/trust contributor, if any.

Quarterly reports of no later than 15th day of the first month of the next quarter;

1. Internal financial reports related to the trust operations in accordance with the accounting standards and relevant regulations in force in the Kingdom of Cambodia;
2. The report on dispute resolutions and complaints, if any; and
3. The report on the trust assets management.

Annual report no later than March 31st after the end of the fiscal year.

The trust company shall provide TR the annual report as follows:

1. Report on achievements and challenges for implementing the business plan held at the TR;
2. Current organization and structure, including holding company/parent company, subsidiaries, branches, and representative offices of the trust company;
3. Financial reports of the trust companies that have been audited by the auditing company, recognized by the TR;
4. Certified letter from relevant companies that guarantee the debt obligations of the trust company or all of its subsidiaries and related documents, if any;
5. Insurance contract on trust, if any;
6. Insurance contract on liabilities of trustee, if any;
7. Report on trust assets management;
8. Report on activities for social and environmental responsibility; and
9. Other information determined by the TR.

An individual trustee shall provide to the TR the annual reports as follows:

1. Report on achievements and challenges for implementing the business plan held at the TR;
2. Financial reports prepared in compliance with the Law on Accounting and Auditing
3. Insurance contract on trust, if any;
4. Insurance contract on liabilities as trustee, if any;
5. Report on trust assets management;
6. Report on activities for social and environmental responsibility; and
7. Other information determined by the TR.

Obligation on Notification

The trust company shall immediately notify the TR in writing on the status change of the followings that may affect the trust company in operating the trust business and/or the trust assets:

1. Management status of the trust company;
2. Active assets of the trust company;
3. Credits or debts status of the trust company;
4. Investment status of the trust company;
5. Profit structure of the trust company; and
6. Other changes related to the management and financial status of the trust company.

The individual trustee shall immediately notify the TR in writing on the status change of the following that may affect the individual trustee in the operation of the trust company or the trust assets:

1. Management status of the individual trustee;
2. Credits or debts status of the trust assets;
3. Investment status of the trust assets;
4. Profit-loss structure of the trust assets;
5. Other changes related to management status of the individual trustee and financial status of the trust assets.

Obligations on Request for Approval

The trust company shall request for approval from the TR before merging companies, acquiring company, transferring trust operation, initiating liquidation, dissolving company, suspending or ceasing trust operation.

The trust operator who provides safeguard keeping services or escrow services in the trust sector and the individual trustee shall request for approval from the TR before commencing the suspension or cessation of the trust operations.

The trustee shall provide the TR the procedures and documents related to the end of trust operations for at least 6 months before the operation closing-date.

Penalty

Administrative measures

The trustee who does not comply with the obligations to notify/submit reports/request for approval as stated in the this Prakas shall be subject to the following administrative measures by the trust inspector as follows:

• Warning;
• Guiding for rectification;
• Restrictions on licenses/permits;
• Suspension of license/permit;
• Withdrawal of license/permit;
• Restrictions on the management and administration of the registered trust assets.

Fines

• A fine of 400,000 (four hundred thousand) riels to 60,000,000 (sixty million) riels shall be imposed by the trust inspector for non-compliance with obligations to notify/submit reports/request for approval as stated in Article 7, Article 9, Article 13, Article 16 and paragraph 2 of Clause 18 of this Prakas.
• A fine of 1,000,000 (one million) riels to 200,000,000 (two hundred million) riels shall be imposed by the trust inspector for non-compliance with the obligations to notify/submit reports/request for approval as stated in Article 8, Article 10, Article 11, Article 12, and Article 14 of this Prakas or non-compliance with the instructions, determinations or requirements set out by the TR.
• Shall be subject to any administrative measure as stated in Article 22 of this Prakas by the trust inspector in addition to the fines as stated in paragraph 1 and paragraph 2 above for the trustee who has committed the offense as stated in paragraph 1 and paragraph 2 above.
• In case of repeat offense, shall be fined by the trust inspector twice the amount of the previous fine.
• The management of fine shall be in accordance with the provisions in force.
• The provisions of single chapter (general provisions) of title 1 (general provision), the single chapter (physical punishment) of title 3 (physical punishment) of book 8 of the code of criminal procedures shall apply when the decision on fines becomes final.