Cambodia Fails to Ensure Transparency in Banking Sector, Experts Warn
Inadequate Efforts to Combat Financial Secrecy and Corruption
A recent review of Cambodia’s implementation of the United Nations Convention Against Corruption (UNCAC) has highlighted the country’s inadequate efforts to combat financial secrecy and corruption. The report notes that building capacity on investigation techniques, applying best practices to overcome bank secrecy approaches, and sharing information between agencies are crucial steps towards achieving transparency in the banking sector.
Pandora Papers Expose Vast Network of Trusts and Offshore Companies
Recent revelations from the Pandora Papers have exposed a vast network of trusts and offshore companies used to conceal wealth and assets, as well as loot cultural and historical artifacts. Experts say that uncovering hidden finances is key to combating corruption, but Cambodia’s lack of transparency in its banking system makes it difficult for investigators to do so.
UNODC Training Session on Advanced Anti-Corruption Investigation Techniques
To address this issue, the United Nations Office on Drugs and Crime (UNODC) held a training session on advanced anti-corruption investigation techniques for the Cambodian Anti-Corruption Unit. The three-day event brought together 26 legal, anti-corruption, and investigation officers who were briefed on best practices in information exchange, anti-money laundering, and formal and informal mutual legal assistance approaches.
Training Highlights Importance of Information Sharing Channels
Participants in the training exercise discussed various tactics to uncover hidden finances, including assessing crimes committed as part of efforts to hide money in foreign jurisdictions. They also examined ways to obscure financial transparency, which often belies other underlying crime typologies such as wildlife trafficking or drug smuggling.
The training highlighted the importance of information sharing channels, with Article 46 of the UNCAC requiring state parties to support each other through mutual legal assistance in investigations, prosecutions, and judicial proceedings. The convention also mandates cooperation via formal and informal channels, including initial information or intelligence sought through informal police-to-police contact.
Experts Urge Government to Take Concrete Steps
Experts say that Cambodia’s failure to ensure transparency in its banking sector has allowed corruption to flourish, with hidden wealth linked to various types of crime. They urge the government to take concrete steps towards increasing transparency and cooperation between agencies to combat financial corruption.
- Build capacity on investigation techniques
- Apply best practices to overcome bank secrecy approaches
- Share information between agencies
- Implement mutual legal assistance in investigations, prosecutions, and judicial proceedings
- Foster cooperation via formal and informal channels
By addressing these issues, Cambodia can work towards increasing transparency and combating financial corruption, ultimately protecting the country’s economy and reputation.