Financial Crime World

Financial Crime Prevention Strategies in Cambodia: UK Expertise to Combat Money Laundering and Terrorism Funding

Introduction

The British Embassy in Phnom Penh has announced a five-day workshop on International Best Practices in Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT), partnering with key government ministries and departments. The training, provided by UK-based GovRisk, will take place from March 11th to 15th at the Hotel Cambodiana.

Workshop Objectives

The workshop aims to bring together stakeholders in the fight against financial crime, including:

  • Financial Intelligence Unit (FIU)
  • Central Bank
  • Judiciary
  • Prosecutors
  • Law enforcement agencies
  • Tax inspectors
  • Regulatory bodies
  • Private sector

GovRisk faculty member Gert Demmink, a renowned expert in money laundering and financial crime, will conduct the training.

Importance of Implementing AML/CFT Standards

Demmink emphasized the importance of implementing AML/CFT standards, stating that increased scrutiny on the region’s standards has been seen over the past year. “We hope to assist some of the key departments in implementing these standards, enabling them to enforce and prosecute financial crimes and ensure a strong, stable environment for legitimate business,” he said.

British Ambassador’s Remarks

British Ambassador Mark Gooding commended the partnership, emphasizing the need for international cooperation to address financial crime threats. “It is vital that we work together to address these challenges, which undermine our economies’ reputation and good work. This project allows us to support Cambodian institutions in improving specific skills, contributing to Cambodia’s sustainable economic development.”

Cambodia’s Vulnerability to Money Laundering

Cambodia’s vulnerability to money laundering was highlighted, with estimates suggesting global money laundering totals 2-5% of total GDP or £23-57 billion. The country’s cash-based economy, informal banking system, and porous borders make it an attractive target for drug and human traffickers.

FATF’s Assessment

The Financial Action Task Force (FATF) has identified Cambodia as one of 26 countries with “strategic deficiencies” in its AML/CFT policies and procedures. To address this, the country must:

  • Adequately criminalize money laundering and terrorist financing
  • Establish effective procedures for identifying and freezing terrorist assets
  • Ensure a fully operational Financial Intelligence Unit

Workshop Goals

The workshop aims to support Cambodia’s efforts in implementing these requirements, building on the country’s 2007 Law on Anti-Money Laundering and Combating the Financing of Terrorism. The training will provide participants with practical guidance on incorporating international best practices into their professional duties, helping to strengthen Cambodia’s financial sector and combat financial crime.

About GovRisk

GovRisk is a group of professionals providing high-quality consultancy and training programs to public and private sector institutions worldwide. Since 2010, the organization has worked with over 30 countries, offering specialized training and guidance on:

  • Financial crime prevention
  • Corruption
  • Risk management
  • Governance