Cambodia Fails to Meet FATF Recommendations, Report Reveals

A recent report by the Financial Action Task Force (FATF) has highlighted significant shortcomings in Cambodia’s implementation of anti-money laundering and counter-terrorism financing regulations.

Key Findings

• The country is largely non-compliant with 29 out of 40 FATF recommendations.
• Cambodia has made some progress in certain areas, but remains partially compliant in seven key domains.
• The remaining four recommendations have been rated as mostly compliant.

Critical Areas Requiring Improvement

National Cooperation and Coordination (R.2)

• Lack of Clear Framework: Cambodia has not established a clear framework for inter-agency collaboration.

Money Laundering Offence (R.3)

• Unclear Scope, Threshold, and Punishment: The country’s laws lack clarity on key aspects such as scope, threshold, and punishment.

Confiscation and Provisional Measures (R.4)

• Insufficient Powers for Authorities: Cambodia’s laws do not provide sufficient powers to authorities.

Targeted Financial Sanctions Related to Terrorism and Terrorist Financing (R.6)

• No Designations Under UN Sanctions: The country has not designated any entities or individuals under UN sanctions.

Financial Institution Secrecy Laws (R.9)

• Remains Unchanged Despite Non-Compliance Rating: Cambodia’s laws on financial institution secrecy remain unchanged despite being rated as non-compliant.

The FATF report emphasizes the need for Cambodia to address these shortcomings urgently to prevent the misuse of its financial system for illicit activities.

Call to Action

Cambodia’s non-compliance with FATF recommendations raises concerns about the country’s ability to effectively combat money laundering and terrorism financing. The international community expects Cambodia to take concrete steps to strengthen its anti-money laundering framework and ensure that it meets global standards.