Insight | 5 May 2025
How Are My Assets Protected — and What Happens in a Worst-Case Scenario?
When you place assets into a trust, protection must be built into the structure itself. Under Cambodia's Trust Law, there are legal, operational, and regulatory safeguards designed to protect trust assets — even in difficult situations.
Protection Against Fraud
Licensed trustees are required to maintain strong internal controls to safeguard client assets.
This includes segregation of duties, meaning no single person can control or move trust assets alone. Transactions require proper approvals, and trust accounts are kept separate from the trustee's own company accounts. This separation ensures that trust assets are clearly identified and protected at all times.
Operations are continuously monitored, and regular reviews and audits are conducted to ensure controls are working properly. In addition, licensed trustees are supervised by the Trust Regulator, which provides external oversight.
If fraud were ever to occur, clients have the right to file a complaint with the Trust Regulator and, if necessary, the police for investigation. As trustee, the company is legally responsible for losses arising from fraudulent acts in the course of its administration.
What If the Trustee Becomes Insolvent?
Another common concern is what happens if the trustee company itself runs into financial trouble.
Under Cambodian Trust Law, trust assets are legally separate from the trustee's own assets. They do not belong to the trustee personally and cannot be used to pay the trustee's corporate debts.
If a trustee becomes insolvent, the Trust Regulator has the authority to step in and oversee the trust assets held under registered trust deeds. The trust itself does not automatically end.
Because the Trustor remains the beneficial owner (subject to the trust terms), a new licensed trustee can be appointed to continue managing the trust in accordance with the existing trust deed. The intention of the law is to ensure continuity and protection of the assets.
The Importance of Institutional Strength
While the law provides protection, the stability and experience of the trustee still matter.
Phillip Trustee (Cambodia) is part of the Phillip Capital Group, which brings more than 50 years of financial leadership originating from Singapore. This long-standing institutional background reflects disciplined governance, regulatory experience, and strong internal risk management standards.
