Khmer Times News: The National Authority for Alternative Dispute Resolution (NAADR), Association of Banks in Cambodia (ABC) and Cambodia Microfinance Association (CMA) signed an MoU to streamline financial dispute resolution, enhancing efficiency, transparency and investor confidence in the banking sector.

The MoU was signed by Chin Malin, Permanent Secretary of State of the ​Ministry of Justice (MoJ) and also Permanent Deputy Director of NAADR, Rath Sophorn, Chairman of ABC and Dith Nita, Chairwoman of the Board of Directors of CMA, in Phnom Penh on September 5.

The signing ceremony was witnessed by Em Kamnan, Deputy Director General of Banking Supervision of the National Bank of Cambodia (NBC), attended by leaders and officials of NAADR, along with representatives from numerous financial institutions, totalling around 100 participants.

According to a joint press release issued on Saturday, the MoU aimed to strengthen and promote mediation and dispute resolution in the banking and finance sector through collaboration between the three institutions.

It marked a new milestone in improving the quality and efficiency of extrajudicial dispute resolution, particularly for disputes between commercial and microfinance banks that are members of ABC and CMA and their clients.

The agreement is also expected to enhance Cambodia’s extrajudicial dispute resolution mechanisms, making them more diverse, effective and accessible, aligning with the Royal Government’s priority policies under the leadership of Prime Minister Hun Manet, the statement added.

Under the MoU, the three parties will cooperate in strengthening the capacity of NAADR’s dispute resolution officers, as well as relevant officers from member institutions of both associations.

This included enhancing expertise in banking and finance, as well as the technical procedures of out-of-court dispute resolution.

The collaboration focused on promoting the benefits of out-of-court dispute resolution to a wider audience, including members of both associations, through meetings, workshops, training programs and other events related to dispute resolution mechanisms.

Following the signing, the three institutions organised a capacity-building workshop for NAADR’s dispute resolution officers titled ‘Strengthening the Effectiveness of Dispute Resolution for Citizens, Especially in Debt-Related Disputes in the Banking and Finance Sector’.

During the workshop, the ABC Chairman emphasised that the cooperation mechanism between the three institutions will not only reinforce the legal framework and financial services but also enhance the confidence of investors, businesses and the public.

“Through this cooperation and the capacity-building workshop for NAADR officials, we believe that disputes in the banking and finance sector will be resolved quickly, fairly, transparently, efficiently and with accountability from all parties involved,” Sophorn said.

CMA, through its official media account, highlighted that the agreement is expected to promote better consumer protection, contributing to the sustainable and environmentally responsible development of Cambodia’s financial sector.

CMA has previously implemented several initiatives to enhance consumer protection, including introducing a code of conduct for the banking and financial sector, establishing a consumer complaint resolution mechanism, setting credit contract standards and implementing projects and programs focused on financial literacy and consumer protection.

By fostering collaboration between banks, microfinance institutions and dispute resolution authorities, the MoU represents a significant step toward a more resilient, transparent and investor-friendly financial ecosystem in Cambodia.