Anti Money Laundering (AML) By Country: Cambodia

Anti Money Laundering (AML) in Cambodia

 Cambodia
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Cambodia is neither a large regional financial center nor an offshore financial center; however, the major sources of money laundering are widespread through human trafficking and exploitation, drug trafficking, and corruption. Cambodia’s Anti-Money Laundering (AML) regime, cash-based economy with an active informal banking system, porous borders with attendant smuggling, limited capacity of the National Bank of Cambodia (NBC)to supervise a rapidly expanding banking sector, and widespread corruption continue to contribute to a significant money laundering risk.

However, with the 2007 enactment of the Law on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CTF) and the subsequent May 2008 implementing regulation, Cambodia has created a foundation to combat acts of money laundering and terrorist financing within the banking sector. Additional implementing regulations are needed to bring all designated nonfinancial businesses and professions (DNFBPs) into compliance with reporting requirements established in the AML/CTF law.

The AML/CTF law was circulated in June 2007 and provides the framework for the Cambodian Financial Intelligence Unit (CAFIU) to exert control over banks and DNFBPs, such as casinos and realtors and entities to be designated by the CAFIU. The NBC is making strides to regulate large or suspicious financial transactions.

AML Training in Cambodia

Under the Law on Anti-Money Laundering and Combating the Financing of Terrorism, all banks and financial institutions are required to develop programs for the prevention and detection of money laundering. These programs should include:

  • Development of internal policies and procedures.
  • Designation of compliance officers.
  • Ongoing and consistent training for employees.

The Economy of Cambodia

Cambodia’s economy has progressed greatly in the last decade. The country relies primarily on services and trading activities, which have since stimulated the economy. The agriculture sector is currently being rehabilitated, which in combination with good rainfalls led to a growth of over 20% in 2009.

Banking in Cambodia

The National Bank of Cambodia (NBC) is the central bank of Cambodia. Established in 1954, the NBC performs the following duties:

  • Determining monetary policy objectives, as well as formulating, implementing, and monitoring monetary and exchange policies aimed at the determined objectives.
  • Setting interest rates.
  • Licensing and regulating banks and financial institutions, as well as other relevant establishments, such as auditors and liquidators.
  • Acting as the sole issuer of national currency of the Kingdom.
  • Undertaking and performing, in the name of the Kingdom, transactions resulting from the participation of the Kingdom in public international institutions in the banking, credit, and monetary spheres.
  • Establishing the balance of payments.
  • Participating in the management of external debt and claims.

Cambodia’s Currency

The currency in Cambodia is the Riel. The Riel comes in both banknotes and coins. Banknotes are available in 50, 100, 200, 500, 1,000, 2,000, 5,000, 10,000, 20, 000, 50,000 and 100,000 denominations. Coins are available in 50, 100, 200 and 500 denominations.

Other Key Statistics of Cambodia

Time Zone: UTC+7 (10 hours ahead of Washington, DC during Standard Time).

Daylight Savings Time: Cambodia does not currently observe daylight savings time.

Location: Southeastern Asia, bordering the Gulf of Thailand, between Thailand, Vietnam, and Laos.

Population: 15.14 million (2013 est.)

Labor Force: Approximately 33.4% works in agriculture, 21.4% in industry, and 45.2% in services industries. The unemployment rate is 3.5%.

Languages Spoken: Khmer (official), French, English.

Trade Organizations: Cambodia is a member of the World Trade Organization (WTO).

 

A Free Overview Of Anti Money Laundering (AML) For Cambodia.