On 20 January 2026, the National Bank of Cambodia (“NBC“) issued Prakas No. 37.026 on Conditions for Asset Management Institutions (“Prakas“). This Prakas applies to all Asset Management Institutions (“AMIs“) and banking and financial institutions under the supervision of NBC. The purpose of this regulation is to define the regulatory framework for AMIs that purchase and manage non-performing loans (“NPLs“) and associated collateral from banking and financial institutions.
This Update highlights the key features of the Prakas which are set forth as follows:
- Licensing and Minimum Capital Requirements
According to the Prakas, any entity applying for an AMI license must be registered as a Public Limited Company. The regulation mandates a minimum registered capital of KHR 200,000,000,000 (approximately US$50 million). Before commencing business operations, an AMI is required to pay 100% of this registered capital into an account opened at NBC and maintain a 5% capital guarantee deposit. Licences are valid for a period of five years and renewable.
2. Permitted and Prohibited Business Activities
AMIs are authorised to purchase and manage NPLs and associated collateral, provide debt collection services, and facilitate the sale of collateral with debtor consent. They may also purchase real estate from debtors through court-ordered auctions or liquidation processes. However, Article 5 of the Prakas strictly prohibits AMIs from providing new credit or refinancing, guaranteeing loans, or purchasing NPLs from institutions that provide loans directly or indirectly to the AMI itself.
3. Transfer of Non-Performing Loans
The Prakas establishes a framework for the transfer of NPLs. Banking and financial institutions must obtain prior approval from NBC before selling NPLs to an AMI. This request must include a board resolution, valuation documents, and any other documents required by NBC. Upon the sale, banks must transfer all original loan documents to the AMI, including but not limited to credit agreements, collateral documents, and repayment histories. Additionally, banks must formally notify their customers and the Credit Bureau of Cambodia (CBC) regarding the transfer. Upon the purchase, the AMI assumes all rights, titles, interests, and obligations of the banks as the creditor. Furthermore, the Prakas mandates that AMIs establish a Code of Conduct for debt collection that adheres to professional standards, consumer protection laws, and data privacy.
4. Governance and Risk Management
Pursuant to the Prakas, an AMI is required to have a Board of Directors composed of at least five members, including a minimum of two independent members. All members of the Board and Senior Management must satisfy a “fit and proper” test and obtain prior approval from NBC before their appointment. Individuals are disqualified from these leadership roles if they have been convicted of crimes such as theft, fraud, breach of trust, money laundering, or offences related to the issuance of bad checks and bankruptcy. The Board is responsible for approving strategies and establishing dedicated committees for audit, risk management, and NPL purchase oversight. Additionally, AMIs must implement formal policies to prevent and manage conflicts of interest and establish whistleblowing procedures to protect staff who report irregularities in good faith.
- Supervision and Reporting Obligations
AMIs are subject to continuous supervision by NBC, which may conduct inspections with or without prior notice. Additionally, AMIs must submit quarterly financial reports and NPL portfolio reports to NBC within 15 days of the following quarter. Audited annual financial statements must also be submitted by 30 April of the following year. Failure to comply with these reporting or regulatory requirements may result in disciplinary sanctions and daily fines ranging from KHR 1,000,000 to KHR 3,000,000 (approximately US$250 to US$750).
If you have any queries on the above, please feel free to contact our team members who will be happy to assist.
For regional Finance and Banking matters, please see Rajah & Tann Asia’s Financial Service Regulatory Practice for more information.
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