Cambodian Financial Services Authority Bolsters Anti-Money Laundering Oversight
Financial regulators in Cambodia are bolstering their enforcement of anti-money laundering (AML) measures against non-bank financial institutions (FIs). The country’s Non-Banking Financial Services Authority (NBFSA) has issued Prakas No. 009, which enacts disciplinary sanctions against reporting entities that fall short of the country’s AML regulations. The declaration requires non-bank financial institutions to conduct Know Your Customer (KYC) due diligence, maintain records of customers’ identity and transactions for at least five years, and report to the Cambodia Financial Intelligence Unit (CAFIU).
The government is now working to assist institutions in transitioning to these new guidelines, beginning with a workshop organized by the Accounting and Auditing Regulator (ACAR) to inform non-bank FIs of their new obligations. This AML push comes as Cambodia is cracking down on online scam organizations operating throughout the country, having shuttered nearly 200 such centers in recent weeks. Heightened AML enforcement will raise compliance burdens for financial services companies operating in Cambodia, but they may also improve the country’s regulatory predictability and reduce reputational risks associated with illicit finance and scam activity.
