Financial Crime World

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Assessing Vulnerability to Money Laundering and Terrorist Financing in Cambodia

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The National Bank of Cambodia (NBC) and the Ministry of Economy and Finance (MEF) have assessed the vulnerability of non-bank financial institutions in Cambodia to money laundering (ML) and terrorist financing (TF). The report evaluates various sectors, including non-bank financial institutions and designated non-financial businesses and professions (DNFBPs).

Non-Bank Financial Institutions

The following non-bank financial institutions were assessed:

  • Money Remittance Companies: companies that facilitate the transfer of money across borders.
  • Money Changers: businesses that exchange currency for customers.
  • Leasing Companies: companies that provide leasing services to individuals and businesses.
  • Pawnshops: businesses that lend money against collateral.

Designated Non-Financial Businesses and Professions (DNFBPs)

The report also assesses the vulnerability of DNFBPs, including:

  • Real Estate Sector: real estate agents, property developers, and other professionals involved in buying, selling, or renting properties.
  • Casino Sector: casinos and gaming establishments that offer games of chance.
  • Financial Trust Sector: trust companies and financial institutions that provide trust services to individuals and businesses.

Vulnerability Assessment

The report concludes that the vulnerability of non-bank financial institutions in Cambodia is generally low to medium-low due to the presence of regulations and supervisory authorities. However, money remittance companies and money changers have a higher level of vulnerability.

  • Money Remittance Companies: medium-high risk
  • Money Changers: medium-high risk
  • Leasing Companies: low-medium risk
  • Pawnshops: low risk

The real estate sector is rated at medium risk, while the casino sector and financial trust sector are also rated at medium risk.

Efforts to Combat Terrorism and Terrorist Financing

The report highlights the efforts of the Government of Cambodia to establish laws and organizations to combat terrorism and terrorist financing. The harmonizing policy of the government has allowed for full integration of all minority groups, which is a positive step towards reducing vulnerability to money laundering and terrorist financing.

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