Money Laundering Suspicions Emerge in Cambodia-Australia Real Estate Deals

Phnom Penh, May 10, 2024 - A Recent Report Raises Concerns

A recent report has sparked concerns about Cambodian financial sources being used to purchase properties in Australia. The joint report by advisory firm KordaMentha and Transparency International Australia reveals that at least AUD$110 million (approximately $72 million) worth of Australian real estate was purchased by “Cambodian foreign persons” between 2019 and 2023.

The Report’s Findings

The report, titled “Stopping Dirty Money in Australia and Cambodia,” found that more than AUD$516 million ($339 million) in total funds was transferred from Cambodia to Australia in 2020 alone. While acknowledging that some of this money may have been generated through legitimate financial activities or investments, the report questions whether the amount is proportionate to Cambodia’s wealth.

Experts’ Concerns

Experts suggest that at least some of these funds could be linked to illicit origins, given Cambodia’s history of corruption and investment from potentially illegal sources. The Australian Transaction Reports and Analysis Centre (AUSTRAC) estimates that $1 billion ($650 million) was illegally invested in Australian real estate in 2020, highlighting the pattern of large illicit funds flowing into the country.

Challenges Ahead

Cambodia was removed from the Financial Action Task Force’s “Grey List” in February 2023, following efforts to combat money laundering and terrorism financing. However, experts warn that the country still faces challenges in preventing money laundering and illicit financial flows.

Calls for Greater Transparency and Accountability

The report’s findings have raised concerns about the potential impact on Cambodia’s reputation and the legitimacy of its financial transactions. Hong Vanak, an economics researcher at the Royal Academy of Cambodia, questioned the nature of Australia’s direct foreign investment laws and called for clearer categories on what kind of money may not be invested in the country.

Recommendations

• Australian authorities should set clear guidelines on what constitutes illegal or suspicious funds.
• The need for greater transparency and accountability in Cambodia-Australia real estate deals is crucial.

Conclusion

The report’s findings have sparked a heated debate about the need for greater transparency and accountability in Cambodia-Australia real estate deals. As authorities on both sides continue to investigate, it remains unclear what proportion of these funds may be linked to illicit activities. One thing is certain, however: the spotlight is now firmly fixed on the role of money laundering in Cambodian real estate investments in Australia.

Key Statistics

• AUD$110 million (approximately $72 million) worth of Australian real estate was purchased by “Cambodian foreign persons” between 2019 and 2023.
• More than AUD$516 million ($339 million) in total funds was transferred from Cambodia to Australia in 2020 alone.