Financial Crime World

Cambodia Cracks Down on Financial Crimes: Money Laundering, Fraud, and WMD Funding

A Bold Move Against Financial Crimes

April 18, 2024

In an effort to strengthen Cambodia’s anti-financial crime measures, the Ministry of Justice has established a specialized working group focusing on money laundering, terrorist financing, and the funding of weapons of mass destruction (WMD).

Crackdown on Telecom and Online Fraud

Public security organs in China reported a successful crackdown on telecom and online fraud, solving 391,000 cases and securing numerous suspects. One case involved a Cambodian national using a Taiwanese passport with a false identity to depart from Singapore’s Changi Airport (September 27, 2023).

Money Laundering Investigations and Arrests

  • Singaporean authorities seized or froze over $1.76 billion worth of assets in a money laundering investigation involving Cambodian nationals (September 5, 2023).
  • Three Cambodian nationals were among 10 foreigners arrested in a billion-dollar money laundering operation in Singapore (August 18, 2023).
  • A suspect using a Cambodian passport in a money laundering case was later repatriated to Taiwan (April 11, 2023).

Improving Financial Crime Tracking and Prevention

The Cambodian government has taken steps to enhance its financial crime tracking and prevention:

  • The Ministry of Interior expanded its efforts to investigate money laundering within the public sector (April 11, 2023).
  • Sar Kheng, Minister of Interior and Chairman of the National Coordination Committee on Anti-Money Laundering and Combating the Financing of Terrorism (NCC), initiated multiple reviews to lessen the country’s financial crime risk (April 4, 2023).

On and Off the FATF “Grey List”

Following these efforts, Cambodia was removed from the Financial Action Task Force’s (FATF) “grey list” of countries at high risk for money laundering on February 24, 2023. However, global focus on financial malfeasance in the region remains, as former Malaysian prime minister Tan Sri Muhyiddin Yassin was indicted on additional money-laundering charges.

Collaborating with International Agencies and Neighbors

Despite being removed from the FATF “grey list,” Cambodian authorities and their international partners must remain diligent. Cambodia had previously been on the list from 2019. Cambodian authorities continue to collaborate with international agencies and neighboring countries to strengthen their financial crime prevention measures.