Logo of Phnom Penh Post newspaper Phnom Penh Post - Gains, but laundering still a risk

Gains, but laundering still a risk

Gains, but laundering still a risk

Cambodia has been listed among the “most improved” nations in a newly released global index charting risk from money laundering, though it is still rated the sixth most vulnerable among 152 countries.

The 2015 Basel Anti-Money Laundering (AML) Index, published by Switzerland-based NGO the Basel Institute on Governance, saw Cambodia drop three places on the list, having come third behind Iran and Afghanistan in each of the three previous years the index was published.

It is now rated to be less vulnerable than Tajikistan, Guinea-Bissau and Mali.

According to the report, Cambodia’s improvement reflects recent evaluations and follow-up reports by inter-governmental anti-money laundering group the Financial Action Task Force (FATF).

In a report released in March, the FATF noted Cambodia’s “significant progress in improving its [anti-money laundering] regime”, and said it would stop monitoring the country.

However, neither report gave specific details on what improvements have been made, while the new AML Index continues to list Cambodia as “high risk”, with a rating of 7.93 out of 10 based on 14 indicators related to anti-money laundering regulations. Despite Cambodia’s apparent gains, it remains one of only three nations listed as high-risk in the East Asia and Pacific region, alongside Myanmar and Laos.

According to Preap Kol, executive director of Transparency International Cambodia, while the Kingdom’s slight improvement might reflect a small increase in transparency and access to financial information, the country continues to face significant challenges in its fight against money laundering.

“The capacity of the relevant authorities, the means to enforce the law and to promote transparency is still quite limited,” he said.

In the US State Department’s 2015 International Narcotics Control Strategy Report, Cambodia’s vulnerability to money laundering was reported to be “significant”, due to factors such as its dollarised economy, limited regulatory power and loose oversight of casinos.

MOST VIEWED

  • ‘Kingdom lacks up to 400MW in available electricity’

    Prime Minister Hun Sen has called on the general public, hoteliers and businesspeople with generators to use them as back-up as the Electricity Authority of Cambodia cannot generate enough electricity to meet needs due to low water levels in power station reservoirs. On Saturday evening

  • Sor Chandeth defends his criticism of Hun Sen

    Former senator Sor Chandeth has defended his choice of words when criticising Hun Sen, saying he was merely speaking metaphorically to attack the Prime Minister’s political life, not his actual person, as the latter seeks damages. [img] Chandeth spoke to The Post on Thursday,

  • South Korea’s Moon arrives in Kingdom for state visit

    South Korean president Moon Jae-in and his wife arrived in Phnom Penh on Thursday at the start of a three-day state visit to Cambodia to strengthen ties and further the friendship between the two countries. After arriving at the Phnom Penh International Airport in the

  • Youths band together to clean ‘filthy’ Boeung Trabek canal

    Inspired by their affection for the environment, a desire to have a clean and beautiful city, and wanting to send a message to people to stop littering, a group of some two dozen volunteer youths have taken to picking up trash day and night from