Financial Crime World

Cambodia Commended for Commitment to AML/CFT Efforts, Despite Challenges

The Asia-Pacific Group on Money Laundering (APG) has commended Cambodia for its significant improvements in anti-money laundering and counter-terrorist financing (AML/CFT) efforts since its 2007 mutual evaluation. While the country still faces challenges in addressing money laundering and terrorist financing risks, it has made notable progress in increasing its technical compliance with the Financial Action Task Force (FATF) Standards.

Areas of Improvement

The APG report highlighted several areas of improvement, including:

  • The introduction of a National Risk Assessment (NRA) in 2016
  • Efforts to strengthen financial intelligence gathering capabilities
  • Increased technical compliance with FATF Standards

Challenges to Address

However, the report also identified several challenges that Cambodia must address to further enhance its AML/CFT regime, including:

  • Capacity constraints in key agencies
  • Corruption
  • Limited use of financial intelligence in investigations and prosecutions
  • Lack of a coordinated policy approach to AML/CFT
  • No mechanism for executing decisions at an operational level

Recommendations

The APG report recommended that Cambodia continue to build on its progress by:

  • Strengthening financial intelligence gathering capabilities
  • Improving cooperation between law enforcement agencies
  • Enhancing the use of financial information in investigations and prosecutions
  • Developing a coordinated policy approach to AML/CFT
  • Establishing a mechanism for executing decisions at an operational level

Conclusion

Cambodia’s commitment to addressing AML/CFT issues is commendable, and the country has made significant strides in recent years. Despite challenges, Cambodia remains committed to implementing the APG’s recommendations to further strengthen its AML/CFT regime.

Key Findings

  • Cambodia has made significant progress in increasing its technical compliance with FATF Standards.
  • The country has introduced a National Risk Assessment (NRA) in 2016, although it has some limitations.
  • Capacity constraints and corruption remain major challenges for Cambodia’s AML/CFT efforts.
  • There is limited use of financial intelligence in investigations and prosecutions.
  • Cambodia lacks a coordinated policy approach to AML/CFT and no mechanism for executing decisions at an operational level.

Recommendations

  • Strengthen financial intelligence gathering capabilities.
  • Improve cooperation between law enforcement agencies.
  • Enhance the use of financial information in investigations and prosecutions.
  • Develop a coordinated policy approach to AML/CFT.
  • Establish a mechanism for executing decisions at an operational level.