Digital Identity Verification in Cambodia: A Growing Need for Businesses

Overview

Cambodia’s economy is rapidly growing, with a forecasted expansion of 4% in 2021 and 5.5% in 2022. As the nation adapts to changing market conditions and regulatory requirements, businesses must prioritize robust digital identity verification systems.

The Regulatory Landscape

Cambodia is currently on the Financial Action Task Force (FATF) Grey List of Countries with strategic Anti-Money Laundering (AML) deficiencies. The country is actively working with the FATF to address these deficiencies and comply with the Law on Anti-Money Laundering and Combating the Financing of Terrorism, updated in 2020.

Verification Sources

In Cambodia, citizens can be verified using government or credit data sources, including:

• National Identity Card: Provides essential information for verifying an individual’s identity, such as name, date of birth, and address.
• Passport: Another reliable source for verifying citizenship and personal details.
• Driver Licence: Can also serve as a valid identification document.

AML Screening

Businesses should screen their customers against:

• Politically Exposed Persons (PEPs): High-risk individuals who may pose a threat to financial security.
• Sanctions Lists: Identify entities or individuals under international sanctions.
• Adverse Media Lists: Monitor for suspicious activities or negative media coverage.

Protecting Your Business

To safeguard your business from digital identity verification risks:

• Implement Robust Verification Processes: Ensure compliance with local regulations and best practices.
• Use Global Watchlists: Identify high-risk individuals or entities to mitigate potential risks.
• Conduct Regular Audits and Risk Assessments: Stay compliant and ensure a secure environment.

By prioritizing digital identity verification and AML screening, businesses in Cambodia can maintain a secure and compliant environment.