Financial Crime World

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Cambodia’s Financial Institutions: Assessing Vulnerabilities

In a bid to combat money laundering and terrorist financing, Cambodia’s financial authorities have assessed the vulnerabilities of its key financial institutions. The assessment, conducted by the National Bank of Cambodia (NBC) and the Ministry of Economy and Finance (MEF), identified four types of financial service providers that require close monitoring: Money Remittance Companies, Money Changers, Leasing Companies, and Pawnshops.

Cambodia’s Financial Landscape

As of December 31, 2015, Cambodia’s financial landscape comprises:

  • 6 mobile payment services providers
  • 3 money remittance operators
  • 8 licensed money changers
  • 2,010 authorized money changers
  • 284 pawnshop companies/firms
  • 9 leasing companies

Vulnerability Assessment

The assessment rated the vulnerability of each institution as follows:

Money Remittance Companies: Medium

  • High vulnerability rating due to international transactions
  • Restrictions on operations have reduced their vulnerability

Money Changers: Medium

  • Vulnerable to money laundering/terrorist financing due to large cash transactions

Pawnshops: Low

  • Limited transactions and lack of international involvement

Leasing Companies: Low

  • Limited transactions and lack of international involvement

Designated Non-Financial Businesses and Professions

In addition to assessing financial institutions, the report examined designated non-financial businesses and professions (DNFBPs) that are vulnerable to money laundering/terrorist financing. The sectors reviewed were:

Real Estate

Casino

Financial Trust

The assessment found that these sectors pose a medium-level risk.

Real Estate Sector

The real estate sector in Cambodia is considered a medium-risk sector due to its potential for large transactions and international involvement.

Casino Sector

The casino sector in Cambodia, which operates mainly along the country’s borders with Vietnam and Thailand, also poses a medium- level risk.

Financial Trust Sector

The financial trust sector in Cambodia has implemented legal frameworks to manage funds granted by development partners. The sector is considered low-risk due to its supervision by the MEF and NBC.

Terrorism and Terrorist Financing

Cambodia’s government has taken steps to combat terrorism and terrorist financing, including providing training and establishing relevant organizations. The country’s harmonizing policy ensures equal treatment of all minority groups.

Conclusion

Overall, Cambodia’s financial authorities are taking a proactive approach to combating money laundering and terrorist financing by assessing the vulnerabilities of its key financial institutions and implementing effective regulations and supervision measures.