Cambodia's Justice Ministry to Study Establishing Team for Expediting Financial Sector Lawsuits

The Cambodian Ministry of Justice will initiate a study into the feasibility of establishing a specialized working group aimed at expediting the resolution of lawsuits within the nation's banking and microfinance sectors. This move comes in response to requests from the Association of Banks in Cambodia, led by Mr. Rattanak Sophoan, and the Microfinance Association of Cambodia, led by Mr. Sok Von. During a meeting held at the Ministry of Justice on September 18, 2026, Deputy Prime Minister and Minister of Justice, Mr. Kaeth Rith, met with representatives from both associations. The discussion focused on strengthening cooperation between the Authority for Resolving Disputes Outside of Court (ADK), an entity under the Ministry of Justice, and the two associations, as well as addressing ongoing legal cases involving financial institutions. Representatives from both associations strongly urged the establishment of a mechanism involving the Ministry of Justice and relevant stakeholders. The objective is to accelerate and enhance the quality of litigation processing in the banking and financial sectors, thereby ensuring a favorable investment environment and bolstering the confidence of both domestic and international investors. In response, Deputy Prime Minister Kaeth Rith accepted the proposals from the associations and offered the following three recommendations: First, the Ministry will study the possibility of creating a working group to help expedite the resolution of cases related to the banking and financial sectors in the courts. Second, the associations are encouraged to promote the increased use of notary services among member institutions. Legally, notary documents are enforceable instruments that can help streamline judicial procedures. Third, banking and microfinance institutions are encouraged to continue utilizing the services of ADK for dispute resolution. Settlement agreements reached through ADK, based on the mutual consent of the parties, possess the same enforceability as a final court judgment and are often voluntarily implemented by the parties involved. This initiative is seen as a potentially significant step towards enhancing legal stability in Cambodia's financial sector and attracting further foreign investment.