Introduction
On 28 January 2026, the Non-Banking Financial Services Authority (“NBFSA“) issued Prakas No. 009 on the Disciplinary Sanctions Against Reporting Entities in the Trust Sector for Non-Compliance with the Law on Anti-Money Laundering and Combatting the Financing of Terrorism (“Prakas“). This Prakas sets out the disciplinary measures that may be imposed on trust sector reporting entities for failures to comply with anti-money laundering and counter-terrorist financing (“AML/CTF“) obligations, reinforcing NBFSA’s supervisory approach and strengthening the implementation and enforcement of the Law on Anti-Money Laundering and Counter-Terrorist Financing (“AML/CTF Law“).
Key Features
In this Update, we highlight some of the key features outlined under the Prakas.
- Definition of Key Terms
The Prakas provides for specific definition of certain key terms, including the following:
- Reporting Entity in Trust Sector (“Reporting Entity“): refers to any person under the conditions of a licence and/or an approval issued by the Trust Regulator of Cambodia (“TR“).
- Disciplinary sanctions: refers to the administrative penalties imposed by the Trust Inspector on a reporting entity for regulatory non-compliance, including administrative measures and monetary fines.
- Obligations for Reporting Entity
Under Chapter 2 of the Prakas, a Reporting Entity is required to comply with certain obligations including:
- Obligation to not engage in prohibited activities (Article 7 of AML/CTF Law);
- Obligation to conduct Know Your Client due diligence (Article 8 of AML/CTF Law);
- Obligation to pay special attention for certain specific transactions;
- Obligation to maintain records of customers’ identity and transactions for a minimum period of five years;
- Obligation to report to the Cambodia Financial Intelligence Unit (CAFIU) and other relevant competent authorities; and
- Obligation to create AML/CTF Program including policies, procedures and internal controls systems.
- Disciplinary Sanctions
In addition to fines provided under the Prakas for non-compliance with the above obligations, a Reporting Entity shall be subject to administrative measures by the Trust Inspector including, amongst others:
- Restrictions on licence and/or approval or on transaction within a determined period;
- Suspension on licence and/or approval; and
- Revocation of licence and/or approval.
The formalities and procedures for punishment of the Reporting Entity for non-compliance with the obligations stipulated under this Prakas shall be implemented and enforced in accordance with Prakas on the Formalities and Procedures of Administrative Sanctions and Fines in Trust Sector currently in force.
It should be noted that the imposition of disciplinary sanctions provided for under this Prakas do not preclude the enforcement of applicable criminal law, and is without prejudice to any civil damages arising therefrom.
If you have any queries on the above, please feel free to contact our team members set out on this page, who will be happy to assist.
Disclaimer
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