Cambodia Central Bank Strengthens AML Fight

Cambodia’s National Bank is intensifying its fight against cross-border crime and money laundering to avoid a repeat appearance on the Financial Action Task Force (FATF) grey list, following a series of telecom scam crackdowns. Governor Chea Serey, during the bank’s annual review, highlighted closer coordination with domestic agencies and international partners to tackle scams, laundering and terrorism financing. She warned that another grey-listing could damage public confidence, investor trust, tourism and financial flows, noting that recent scam cases have already hurt the nation’s reputation. Serey emphasized urgent action to prevent further fallout as the Paris-based FATF evaluates jurisdictions’ anti-money laundering and counter-terrorism finance measures.

Raids Target Scam Operations
Authorities have launched aggressive operations against illegal casinos and fraud hubs, imposing severe penalties to curb the spread of scams. Cambodia’s Financial Intelligence Unit (CAFIU) works with overseas counterparts, revoking licenses and freezing assets following court orders. The National Bank is overseeing a second national risk assessment this year to ensure reporting entities comply with regulations. Heightened monitoring now covers real estate, casinos and legal sectors, with strengthened AML/CTF cooperation domestically and abroad. The high-profile arrest of Chen Zhi, chair of Prince Group, and his extradition to China underscores enforcement seriousness, following U.S. charges, asset seizures and sanctions on affiliated companies. Prince Bank and associated real estate entities are now under liquidation supervision.

Grey List History Shapes Strategy
Cambodia first appeared on the FATF grey list in 2011, was removed in February 2015, returned in February 2019, and was delisted again in February 2023 after improvements to AML/CTF measures. CAFIU’s first-half 2025 reports show a 13.1% rise in previously unreported major cash cases and a 21.8% increase in omitted suspicious reports compared with the prior year. The 2020 AML/CTF law requires banks, insurers, casinos and real estate firms to verify clients, identify owners and suspicious actors, report cash transactions over KHR40 million (around US$10,000), ban anonymous accounts and retain records for five years.

Coordinated National Effort
Governor Serey leads inter-agency coordination and international partnerships to disrupt scam networks. With fraud hubs threatening Cambodia’s image, tourism and investment inflows, full compliance remains a priority. Cases like Chen Zhi’s illustrate the National Bank’s commitment to liquidate illicit assets and deter imitators. Risk assessments inform targeted remedial actions, ensuring efforts are precise and effective.

Modernizing Enforcement Tools
CAFIU has increased investigations, ensuring entities meet filing obligations on potential risks. Due diligence rules block suspicious transactions at the source, while mandatory record-keeping supports audits and closes loopholes. International collaboration extends Cambodia’s reach, enabling freezing of overseas funds connected to local operations.

Protecting Economic Growth
Cambodia’s multi-layered approach of enforcement raids, legal frameworks and global cooperation aims to secure the progress made in 2023. Governor Serey’s warnings stress sustained vigilance to shield tourism and investment from scams. Through high-profile prosecutions and strengthened compliance, the country seeks to stay off the FATF grey list and maintain clean, sustainable economic growth.