We offer commercial trust services that enable investors to hold assets in Cambodia, effectively removing legal obstacles. Additionally, our bespoke services assist in protecting your assets from unforeseen circumstances, ensuring a clear separation from your personal wealth. Trusts are also an efficient tool for tax and succession planning.
Under Cambodian law, a trust is delineated as the stewardship and administration of a fund entrusted by a trustee for the advantage of a beneficiary in conformity with the terms of the trust agreement or prevailing regulations, as defined under the recent Prakas.
In essence, it represents the conveyance of assets to an individual or corporate entity for the purposes of oversight, management, and the promotion of benefits, typically achieved through strategic investments. The latest ministerial directive, complementing the foundational Trust Law, identifies two categories of fiduciary overseers-termed trustees-namely, corporate trustee entities and individual trustees.
Regardless of whether the trustee is a corporate entity or an individual, approval from the TR must be secured through formal application. Upon validation of the application, TR issues a two-year license to the trustee, with the possibility of renewal for an additional three years.
The configuration of a trust predominantly hinges on the necessities and goals of the settlor and beneficiaries. According to the updated regulations, one or more trustees can be designated to administer the trust; however, in cases involving multiple trustees, an odd number is mandated by law.
By default, trusts may be established without a specific termination date, yet the maximum lifespan cannot exceed 100 years.
Under the revised protocol, trustees are obliged to commence operations within three months of receiving their TR license. This obliges the settlor to initiate fund transfers into the newly established trust account. It remains possible to replace a trustee, subject to the TR endorsement and notification. Beneficiaries hold a 30-day period to oppose such modifications subsequent to TR's approval. In general, the regulatory conformity of the trustee represents a pivotal facet of the transaction and necessitates meticulous oversight.
In addition to the elevated expenditures and the intricacy associated with procuring funds,
the dissolution of a trust is commonly cited as a principal drawback owing to its intricate
nature as a structural entity.
Cambodian legislation identifies four events that can culminate in the cessation of a trust.
In each instance, the termination of a trust typically entails a complex procedure overseen closely
by the TR. Any residual funds are distributed among the beneficiaries as stipulated in the original
agreement, or, in the absence of a specific directive, equitably among them.
This critical document specifies all the details of the holding property, trustor (client), trust company, trustee, and beneficiary. It is a legally binding document registered with the Trust Regulator.
Land trusts are a smart estate planning tool, offering flexible management and protection for your real estate properties, ensuring peace of mind and smooth transitions for your beneficiaries.
If you're exploring new opportunities and haven't yet settled on the perfect fit, or if you're simply looking to benefit from competitive interest rates on USD deposits — and even higher rates in KHR — Money Trust is the ideal solution for you.
For those who have already identified their investment goals, Investment Trust is the smart choice. Whether you're focused on real estate, stocks, or other financial assets, you can confidently hold and manage them with us.
Among commercial trusts, one of the most popular options is the Land Trust, widely used in estate planning. Designed for seamless property management during one's lifetime, these trusts are revocable, offering flexibility for termination or modifications. Land trusts can include a range of real estate assets such as buildings, homes, or land.
A land trust consists of three key roles: the settlor/trustor, trustee, and beneficiary. The trustor establishes the trust and transfers the property, the trustee manages it, and the beneficiary enjoys the benefits. In some cases, the trustor and the beneficiary can be the same person or entity.
Mrs. Enna is a foreigner. She wants to buy land that has 5 floors building in Siem Reap Province.
According to Article 44 of the Cambodian Constitution, only Khmer legal entities and citizens can own land. This means that foreigners, either as a natural person or entity (51% or more shares), are prohibited from owning land in Cambodia (except for property building - 1st floor and above).
Therefore, safely investing in real estate in Cambodia has become an essential issue for foreigners before investing.
* Commercial Trust presents diverse opportunities encompassing not only real estate but also shares and various financial assets.
Mrs. Enna appoints CCU Trust to purchase and hold the land property in accordance with the agreed terms and conditions of the trust agreement. This way, she can legally possess Cambodian lands even with her Chinese identity.
Mrs. Enna may engage CCU Trust to manage the landed properties such as rental collection from tenants, paying utilities bills, disposal of the landed properties, etc.
The Collective Investment Scheme (CIS) represents a significant, yet relatively new, way of investing and financing for large-scale development projects in Cambodia.
Soon to be launch - please check here for the updates
The Collective Investment Scheme (CIS) represents a significant, yet relatively new, way of investing and financing for large-scale development projects in Cambodia. A CIS is an investment structure that enables fund management companies to initiate investment projects by raising capital from investors. The profits or benefits from these investments are then distributed back to the investors.
Operating a CIS requires the collaboration of a fund management company, a trustee, a distribution company, and a fund administrator. Each of these key entities must be licensed by the Securities and Exchange Regulator of Cambodia (SERC), the Kingdom's regulatory authority for the securities sector. Fund management companies are tasked with establishing and managing funds through meticulous and professional analysis aimed at maximizing returns while maintaining acceptable levels of risk.
To raise capital, fund management companies issue fund units to investors. The sale of these fund units is conducted by the distribution company, which is also responsible for opening investor accounts and repurchasing fund units when investors wish to redeem them. The value of a fund unit can fluctuate daily, influenced by the changing value of the fund's assets. The fund administrator plays a crucial role in appraising the fund's assets, determining the value of fund units, and managing the transfer of their ownership. All proceeds collected from investors are held by the trustee, not the fund management company. The trustee, acting as the legal representative of all assets within the investment trust, ensures compliance with prevailing laws and regulations.
The trustee, an independent entity with no affiliations to the fund management company, oversees the fund management company's operations to guarantee adherence to legal and regulatory standards.
CCU Trust, in collaboration with CCU Commercial Bank, is delighted to introduce Escrow Account service.
CCU Trust, in collaboration with CCU Commercial Bank, is delighted to introduce Escrow Account service.
An escrow account serves as a secure mechanism where funds are held by a neutral and mutually agreed-upon third party. The funds are disbursed only upon consensus from all involved parties regarding the satisfactory completion of specified conditions. Establishing an escrow agreement effectively mitigates trust concerns, especially in transactions where parties may have limited prior knowledge of each other.
Escrow accounts find frequent application in various domains:
Trust in our escrow services to provide reliability, security, and transparency in your financial transactions.
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