Cambodia Update: U.S. Imposes Sanctions on Prime Minister Hun Sen’s Security Chief

U.S. Imposes Sanctions on Prime Minister Hun Sen’s Security Chief

On June 12, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) imposed economic sanctions on Cambodian General Hing Bun Heang, the head of Prime Minister Hun Sen’s Bodyguard Unit, under the Global Magnitsky Human Rights Accountability Act. The sanctions will freeze Gen. Hing’s assets in the U.S. and prohibit all transactions with U.S. citizens.

Gen. Hing is one of fifty-nine individuals and entities penalized under the Magnitsky Act since it was passed in 2016. Originally targeting high-level Kremlin officials, the Act authorizes the executive branch to impose economic sanctions upon individuals accused of human rights violations unilaterally in any jurisdiction. Sigal Mandelker, Under Secretary of the Treasury for Terrorism and Financial Intelligence, cites Gen. Hing's involvement “in a series of human rights abuses… [and] attacks against a number of individuals, including a U.S. citizen,” as evidence against the General.

The Cambodian Government has responded to this set of sanctions, and prior condemnations by the U.S., with increasingly negative rhetoric against the U.S. as bilateral relations continue to sour. After condemning the sanctions against Gen. Hing, Hun Sen’s cabinet caustically referenced the United States’s bombing of Cambodia during the Vietnam War as a violation of human rights. Gen. Hing asserted he was unfazed by the sanctions as he claims to have no financial stake or interests in the United States.

While this set of sanctions against Gen. Hing may be more symbolic than impactful, the U.S. Government may introduce further sanctions against Cambodia’s officials and their affiliates in the near future (click here to access our previous update regarding the Cambodia Democracy Act of 2018). As the international community’s calls for increased transparency and fair competition in the upcoming Cambodian elections grow louder, the political and business risk for U.S. companies in Cambodia also increase. The Council will continue to closely monitor major developments in the U.S.-Cambodia relationship and keep members apprised.

Cambodia Begins Monitoring “Fake News” on Media Platforms

On May 23, the Cambodian Ministers of Information, Interior, and Post and Telecommunication issued a joint regulation that formed a task force to monitor online media platforms. This new inter-Ministry working group will investigate all news and social media sites in the first step of a larger legislative effort to crack down on “fake news.” Other countries in ASEAN, such as Malaysia and Thailand, have also instituted similar content restrictions on news their governments deem to be false or misinformed, although the new administration in Malaysia is looking to repeal their anti-fake news law. The regulation provides each ministry with a specialized role to coordinate and execute this surveillance program, which includes prosecuting unlicensed internet service providers, restricting websites that publish fake news, and requiring web-based media companies to implement filtering software.

The Government of Cambodia claims that the regulation will serve to benefit the public by preventing the harm that fake news causes, including instability and social chaos. While many fear that the Cambodian government will utilize the regulation for political means, Im Vutha of the Telecom Regulator of Cambodia argues that the proclamation will not affect “internet freedom or the July 29 national elections.” However, political analyst Lao Mong Hay finds concern with the “loosely termed” language, which could make room for the Cambodian government to target political and civil society opposition. Additionally, over 100 non-governmental organizations signed a statement on June 8 condemning these content regulations as unjust, and of grave concern with the upcoming general elections on the horizon. As the Cambodian government continues to tighten its grip on the media landscape, both foreign and domestic businesses may face more challenges navigating the Cambodian economy in light of new content regulations.

ASEAN MPs Say Cambodia Election ‘Not Legitimate’ VOA 12th Jun 2018
A group of ASEAN parliamentarians has said excluding Cambodia’s former opposition party from July’s general election had damaged the legitimacy of the vote. The MPs from the group Asean Parliamentarians for Human Rights (APHR) said in a statement this week that the now-dissolved Cambodia National Rescue Party should be allowed to contest the vote and that all political prisoners in the country should be freed.

Cambodia and EAEU fortify ties, consider FTA Khmer Times 7th Jun 2018
Cambodian officials pleaded last week with representatives of the Eurasian Economic Union (EAEU) to include more Cambodian products into the bloc’s joint tariff scheme during a high level diplomatic meeting in Moscow. The request was made on May 28 during the second summit of the joint working group between Cambodia and the Eurasian Economic Commission (EEC), in which the two parties agreed to strengthen collaboration in a number of key industries and looked into establishing a free trade agreement.

Watchdog cites political environment for decision not to act as monitor Phnom Penh Post 21st Jun 2018
Transparency International Cambodia (TI) announced on Wednesday that it will not be monitoring the upcoming national elections. This development follows prominent election watchdogs the Committee for Free and Fair Elections in Cambodia (Comfrel) and the Neutral and Impartial Committee on Free and Fair Elections in Cambodia (Nicfec) deciding not to register observers with the National Election Committee (NEC) for the July 29 poll.

Gov’t continues China tilt as ties with the US slide on ‘interference’ in Kingdom’s internal affairs Phnom Penh Post 19th Jun 2018
CHINA has granted some $131 million in aid to the Cambodian military. It comes as yet another sign that the Kingdom is strengthening strategic ties with its Asian neighbour to counter increasingly cold relations with the United States.

As Cambodian democracy weakens, U.S. imposes sanctions on a high-ranking Cambodian official Washington Post 13th Jun 2018
Cambodia’s democracy has been in increasing trouble in recent months, with Prime Minister Hun Sen dissolving the main opposition party and cracking down on independent media. Now there’s a sign that the U.S. government is paying attention.

The Shrinking Options for Cambodia’s Opposition as Hun Sen Eyes Another Re-Election  World Politics Review 14th Jun 2018
In the run-up to Cambodia’s national elections next month, long-ruling Prime Minister Hun Sen, in power since 1985, has taken no chances of a political shocker similar to the opposition win in nearby Malaysia in early May. To ensure that he and his party triumph again, Hun Sen has in the past year overseen the dissolution of the major opposition party, the Cambodia National Rescue Party, or CNRP; harassed many opposition politicians into exile or tossed them in jail; and torn apart a vibrant and independent Cambodian media.

U.S. House Committee Names Cambodia Among Democracies ‘Under Siege’ VOA, 25th Jun 2018
Cambodia has been named among a small group of countries where democracy is “on the ropes” at a U.S. Foreign Affairs Committee hearing. The hearing, held on June 14, invited experts to testify as to the health of democratic regimes seen as “backsliding” towards authoritarianism. “From Turkey to Cambodia, democratic institutions around the world are under siege,” said Congressman Ed Royce, who chaired the hearing. “There is no doubt that democracy is on the ropes. Freedom House reports that democracy has declined worldwide over the last decade. The question for us is do we care? And if so, what should we do about it?” Royce said.

New terminal to allow Sihanoukville port to process bigger loads Phnom Penh Post 14th Jun 2018
The Kingdom’s only deep-sea port, operated by state-owned Sihanoukville Autonomous Port (PAS), will launch a new multipurpose terminal on June 25, to accommodate larger vessels with heavy loads, it said on Wednesday. PAS Chairman and CEO Lou Kim Chhun said the inauguration of the multipurpose terminal will be presided over by Prime Minister Hun Sen.

China pledges over $100 million military aid to Cambodia Reuters 19th Jun 2018
PHNOM PENH (Reuters) - China has granted more than $100 million in military aid to Cambodia, Cambodia said on Tuesday, highlighting the strong ties between Beijing and a government that critics accuse of destroying democracy ahead of an election next month. Prime Minister Hun Sen’s ruling party is expected to easily win the general election on July 29 as the Supreme Court dissolved the main opposition Cambodia National Rescue Party (CNRP) last November at the government’s request.

Crypto Trading Without License Is 'Illegal,' Cambodian Regulators Say CoinDesk 19th Jun 2018
Authorities in Cambodia have announced that domestic investors are now required to obtain a license in order to purchase, sell or trade cryptocurrencies – activities that would be otherwise regarded as illegal. In a joint statement signed on May 11 and published on Tuesday, the National Bank of Cambodia (NBC), the Securities and Exchange Commission of Cambodia and the General-Commissariat of National Police said that the decision was made after observing a growth in cryptocurrency trading in the country.

Cambodia Post launches e-payment, money transfer app Khmer Times 11th Jun 2018
Cambodia Post launches e-payment, money transfer app In a bid to modernise its offer of services, Cambodia Post, the state agency responsible for providing postal service in the Kingdom, on Friday unveiled a new application that enables electronic payments for a range of services as well as money transfers.

Hopes grow as agriculture sector gains from initiative Phnom Penh Post 18th Jun 2018
AS one of the Kingdom’s main engines of economic growth, the agricultural sector has been drawing increased attention recently from both the government and development partners. Millions of dollars have been poured into agriculture projects by both the state and international NGOs, investments which are bearing fruit for many of Cambodia’s farmers.

Ministry unveils new fund to support non-rice crop production Khmer Times 13th Jun 2018
Ministry unveils new fund to support non-rice crop production The Ministry of Economy and Finance yesterday launched a new $2-million fund to increase small farmers’ access to credit. The money will be made available to support the production of agricultural goods other than rice, and will be disbursed by the Rural Development Bank (RBD).

China Helping Boost Cambodia Rice’ Global Image & Quality (video) AEC News 12th Jun 2018
Despite a long history and the receipt of numerous awards the global market image of Cambodia rice lags far behind that from Thailand and Vietnam. One young Cambodian is attempting to change that, however, with a partnership with China’s largest food processing companies helping boost exports and drive up quality. Son-in-law to Prime Minister Hun Sen and president of the Cambodia Rice Federation (CRF) since its formation in 2014, Sok Puthyvuth returned to Cambodia after completing his overseas studies determined to build a name for Cambodia rice.

Minister of Interior to Preside over the Destruction of Contaminated Food Products Fresh News 12th Jun 2018
Minister of Interior Sar Kheng will preside over the burning of 100 tons of low quality and chemical food products Kampong Speu province on June 14, 2018, according to MoI's letter on Monday. The authority cracked down and confiscated low quality, expired, chemical food products that are illegally produced, stocked, and distributed. The ceremony will be attended by leaders of relevant ministries, diplomatic representatives, judicial bodies, local authorities, and the private sector.

Cut More Trees! Cambodians Challenge Conservation Jakarta Globe 9th Jun 2018
Ta Bos, Cambodia. The Cambodian rosewood had stood for hundreds of years, but its value finally proved too hard to resist and the giant tree came crashing down - inside a protected forest. It's unclear exactly who was behind the felling - nobody has been charged - but it set off a series of events, which culminated in hundreds of villagers rejecting their community forest in favor of cutting more trees. The incident underscores the challenge of protecting the country's forests, which researchers say have been rapidly disappearing due to logging and agricultural land concessions granted to companies.

Cambodia and Thailand step up health cooperation Khmer Times 18th Jun 2018
The Cambodian and Thai Health Ministries have signed an agreement to strengthen cooperation in the health sector, including their fight against communicable diseases in border provinces. A joint statement published Friday said that the agreement covered monitoring, protection and control of diseases in border areas, the elimination of malaria, strengthening human resources and increased management of infectious diseases in order to improve existing disease transmission systems.

Chinese medical team treats 8,000 patients in Cambodia Xinhua 18th Jun 2018
A Chinese medical team went to Cambodia and treated more than 8,000 patients in 20 days, serving rural communities in three provinces. The team of 13 doctors, nurses and other health specialists, as well as nine volunteers arrived in May and went back to China Thursday.

NSSF warns of healthcard misinformation campaign Khmer Times 12th Jun 2018
The NSSF issued a statement that said workers are being misled over their healthcards. The NSSF issued a statement that said workers are being misled over their healthcards. The National Social Security Fund warned yesterday it would take legal action against anyone telling workers the NSSF healthcard would provide second-rate healthcare and the service would end after the election.

Up in smoke: Fake cigs seized at PP market Phnom Penh Post 12th Jun 2018
The Interior Ministry’s anti-economic crime unit seized 1,056 packets of fake cigarettes in Phnom Penh’s Daun Penh district on Tuesday, but made no arrests. Mat Yousu, chief of the Anti-Intellectual Property Crime Office, said police raided a home and several stalls at Central Market (Phsar Thmey) in cooperation with Phnom Penh Municipal Court, the anti-economic crime unit and local authorities. The raid was prompted by a complaint filed by British American Tobacco, which produces the 555 brand of cigarettes.

Vietnam, Cambodia trimmed health spending VOV 6th Jun 2018
While most of the emerging markets in Asia has increased its overall spending on health as a share of GDP since 2000, Cambodia and Vietnam have trimmed their allocations to health, according to ANZ Research on Greater Mekong Economic Outlook.

Election Body Uses Telecoms Providers to Encourage People to Vote VOA 21st Jun 2018
The head of Cambodia’s official election body has said the organization is using a telecommunications company to encourage Cambodians to vote in the upcoming general elections. Sik Bunhok, chairman of the National Election Committee (NEC), sent a text message to mobile phone users urging people to be “ready and prepared with relevant documents for voting”.

New venture to invest in local tech startups Khmer Times 20th Jun 2018
OOCTANE Cambodia, a venture capital firm under the umbrella of the Worldbridge Group, announced yesterday the launch of a fund to invest in local and international entrepreneurs in Cambodia. The Cambodia Startup Fund seeks to fuel the aspirations of exceptional entrepreneurs with a vision of transforming Cambodia into a digital powerhouse, said Sear Rithy, chairman of the Worldbridge Group.

Fasmec brings in website for SMEs Phnom Penh Post 15th Jun 2018
Cambodian entrepreneurs who are members of the Federation of Association for Small and Medium Enterprises of Cambodia (Fasmec), can soon display and sell their products on a new shopping website, thanks to a partnership with London-based Sram & Mram Resources Ltd.

Cambodian Teams Through to ‘Semi-Final’ of Tech Challenge VOA 13th Jun 2018
It took many weeks of practice before Rose Angely and her team was ready. After many long days of preparation, the team of 12 to 13-year-olds known as The Five Infinities were ready to pitch their business to more than 400 people at the Institute of Technology last month. The Five Infinities created a smartphone application that provides a platform for customers of Angely’s father’s handyman business.

Three ministries set up web-monitoring group to look out for ‘fake news’ Phnom Penh Post 5th Jun 2018
The Cambodian government will monitor all news and social networking sites with immediate effect, “to prevent the spread of information that can cause social chaos and threaten national security”. In a prakas (a regulation adopted by a minister) signed on May 23 by the ministers of information, interior, and post and telecommunication, it was noted that officials from the three ministries will form an interministry working group to investigate any online media platforms that spread “fake news” before taking appropriate action under the Kingdom’s laws.

Government beefs up internet surveillance Phnom Penh Post 4th Jun 2018
The Cambodian government will monitor all news and social networking sites with immediate effect, "to prevent the spreading of information that can cause social chaos and threaten national security". In a prakas (regulation adopted by a minister) signed on May 23 by the ministers of Information, Interior and Posts and Telecommunications, it was noted that officials from the three ministries will form an interministry working group to investigate any online media platforms that spread fake news before taking appropriate action based on the law.

Cambodia Builds Biggest Ever Data Centre Via International Deal Cambodia Daily 26th Jun 2018
Cambodia is in bad need of digital expansion while all around it is already going in the right direction. This international effort is set to provide both the local IT economy and the national government a massive step in their catch-up effort. Cambodia will see the building of its biggest ever data centre to provide cloud services across the nation following a joint venture. The $70m data centre is backed by Te Aikhong Enterprise and Kepstar Data Center of Cambodia and Malaysia-based firm Fourtitude Asia.

World Bank approves 110 mln USD credit to Cambodia for key highway improvement Xinhua 22nd Jun 2018
PHNOM PENH, June 22 (Xinhua) -- The World Bank has approved 110 million U.S. dollars in financing to improve the condition, safety and climate resilience of a key national highway in Cambodia, according to its statement on Friday. The most direct corridor linking capital Phnom Penh to Cambodia's only deep-sea port in southwestern Preah Sihanouk province, National Road 4 endures heavy traffic through several economic zones and rich agricultural areas including some large-scale farms, the statement said.

Nearly $2B in investments cleared by CDC Phnom Penh Post 22nd Jun 2018
The Council for the Development of Cambodia (CDC), the government body in charge of approving large-scale investments, announced on Thursday that it had approved four projects with a combined total capital investment of nearly $2 billion. It said the four projects would create 11,193 jobs. Announcing the matter on its Facebook page, the CDC said it had approved the investment of Cambodian PPSHV Expressway Co – a $1.87 billion plan to construct an expressway from the capital to Sihanoukville.