Financial Crime World

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Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Law in Cambodia

The 2020 AML/CTF Law in Cambodia has several key provisions that aim to prevent money laundering and financing of terrorism. This law requires organizations to report suspicious transactions, large cash transactions, and other high-risk activities.

Key Provisions

  • Reporting Organizations: The law requires organizations to report suspicious transactions, large cash transactions, and other high-risk activities.
  • Customer Due Diligence (CDD): Reporting organizations must take necessary care to identify customers, obtain information about their source of funds, and monitor their activities.
  • Enhanced CDD Measures: In cases where the risk of money laundering and financing terrorism is considered high, reporting organizations must take enhanced CDD measures, including obtaining additional information about customers and conducting ongoing monitoring procedures.
  • Penalties: The law imposes penalties for legal entities that violate the AML/CTF Act, including warnings, fines, revocation of operating licenses, and dismissal of manager-officers.

High-Risk Situations

The following situations are considered high-risk under the 2020 AML/CTF Law:

  • Transactions with unusual patterns or not clearly directed for a legitimate purpose
  • Business relationships with foreign policy survivors, family members, and close partners of those exposed
  • Politically Exposed Persons (PEPs)
  • Large transactions without sender information
  • Business relationships with institutions or individuals in jurisdictions that have inadequate systems to prevent or deter money laundering/terrorism financing

Sanctions

The law imposes the following sanctions for violating the AML/CTF Act:

  • Fines between KHR 100,000,000 and KHR 500,000,000 for legal entities committing money laundering offenses
  • Imprisonment from two to five years for natural persons committing money laundering offenses
  • Fines between KHR 50,000,000 and KHR 200,000,000 for natural persons who refuse to provide information required by the law or report suspicious cash transactions

Compatibility with Sanction Scanner

The text suggests that Sanction Scanner AML solutions are compatible with all regulations in Cambodia and can help companies meet their AML obligations.