Financial Crime World

Financial Institutions Struggle with AML Remediation Amidst Regulatory Scrutiny

Despite ongoing efforts to improve anti-money laundering (AML) practices, financial institutions in Cambodia continue to face challenges in meeting regulatory requirements. The lack of a robust legal framework, customer education, and qualified human resources are major hurdles for banks operating in the country.

Challenges in AML Remediation

  • Lack of Legal Framework: Cambodia lacks a comprehensive legal framework that addresses AML issues.
  • Customer Education: Financial institutions struggle to educate customers about AML regulations and their role in preventing money laundering.
  • Qualified Human Resources: The shortage of qualified professionals with AML expertise hinders the effective implementation of AML programs.

Regulatory Scrutiny

Regulatory authorities are increasing pressure on financial institutions to improve their AML practices. To mitigate this risk, experts recommend:

Recommendations for Financial Institutions

To improve security and comply with regulatory requirements, financial institutions should:

  • Conduct Customer Seminars: Organize seminars and open forums to educate customers about AML regulations.
  • Strengthen Enforcement: Strengthen enforcement of regulations and reporting requirements.
  • Promote Involvement: Promote the benefits of involvement in the financial services sector.
  • Comply with International Regulations: Comply fully with international financial services regulations & standards.
  • Create Firewalls: Create firewalls to prevent widespread access to data within the institution.
  • Engage Professional Monitoring: Engage professional CCTV and electronic security monitoring at bank premises and ATMs.

Other Threats

Financial institutions in Cambodia also face other threats, including:

Credit Card Fraud and Identity Theft

To combat credit card fraud and identity theft, banks should:

  • Implement 24/7 Manned Hotlines: Have 24/7 manned hotlines to allow customers to cancel lost or stolen cards.
  • Use Discrete CCTV Monitoring: Use discrete CCTV monitoring of ATMs to capture time-stamped photographs of suspicious transactions.

Phishing Scams

To combat phishing scams, financial institutions should:

  • Emphasize Electronic Communications: Emphasize in electronic communications that the institution will never request personal details or PIN numbers via email.

Contact GSS Today

For expert advice on surveillance and security systems and guards, contact the team at GSS today on 023 992 156.