Cambodia to continue working to get off FATF grey list

The country has introduced some changes but has not yet fully implemented the FATF’s recommendations.

Cambodia.- Authorities in Cambodia have said that they will continue working to get the country off the Financial Action Task Force (FATF) grey list of untrustworthy jurisdictions. At its last meeting, the Paris-based inter-governmental agency that monitors controls on anti-money laundering and terrorist financing, decided to keep Cambodia on the list.

Cambodia has been on the list since 2020. However, Pech Pisey, executive director of Transparency International Cambodia (TI Cambodia), said the country has shown some progress.

According to the Phnom Penh Post, Pisey stated: “The positive progress is the result of introducing legal principles, creating a general department that is leading the fight against money laundering and the establishment of new international and regional cooperation combating money laundering.

“Recently there was the establishment of an inter-ministerial committee to combat money laundering led by the Ministry of Justice, and the Anti-Corruption Unit [ACU] has recently provided training on investigations to the tax general department.”

Pisey acknowledged that Cambodia has not yet fully implemented some FATF recommendations. He urged the government to act quickly before the FATF’s 2023 assessment, and that otherwise investors may lose confidence. Pisey said high-risk areas for money laundering included gambling, casinos, real estate and shadow investments which are not properly registered.

In recent months, Cambodia has increased controls on illegal casinos. The government also urged authorities to shut illegal gambling in cafes and shops and it also published a series of new guidelines for gambling businesses. The purpose is to ensure that casino operations are conducted in accordance with the laws and standard documents related to the management of commercial gambling.

Last week, the provincial authorities of Preah Sihanouk ordered all casino operators to obtain approval from the Preah Sihanouk Administration before applying to the Ministry of Economy and Finance. The measure aims to achieve more control of the gaming industry after cases of human trafficking.

See also: AML Council still working to get The Philippines off FATF grey list