Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) in Cambodia

Executive Summary

This report assesses the vulnerability of various financial institutions and designated non-financial businesses and professions (DNFBPs) in Cambodia to money laundering (ML) and terrorist financing (TF) risks. The report identifies key areas of risk and provides an overall assessment of the country’s AML/CFT framework.

Financial Institutions: An Overview

Types of Financial Institutions

The following types of financial institutions operate in Cambodia:

• Money remittance companies
• Money changers
• Leasing companies
• Pawnshops

These institutions are assessed based on factors such as size, operation, and regulatory requirements.

Vulnerability Assessment by Institution

Money Remittance Services

• Operated domestically and internationally
• Higher vulnerability rating due to international transaction risks

Money Changers

• Medium-level vulnerability due to operations involving daily living expenditures for people

Pawnshops

• Low-medium level of vulnerability due to regulations limiting the amount that can be pawned (USD 5,000 or 20% of paid-up capital)

Leasing Companies

• Considered low-risk due to restrictions and regulations in place

Designated Non-Financial Businesses and Professions (DNFBPs)

Real Estate Sector

• Medium-level risk rating due to potential for ML/TF risks associated with property transactions

Casino Sector

• Rated as having a medium-level risk due to operations along international borders and potential for money laundering

Financial Trusts

• Low level of vulnerability, as they are supervised by the Ministry of Economy and Finance (MEF) and primarily used to manage development partner funds

Overall Risk Assessment

While some financial institutions and DNFBPs in Cambodia have vulnerabilities to ML/TF risks, the overall risk is considered medium-low due to the country’s regulatory framework and supervisory bodies.