Cambodia Seeks Exit from FATF Gray List in Early 2023

Cambodia has finally invited the Financial Action Task Force (FATF) to evaluate its progress in fighting money laundering activities in order to get removed from the FATF money laundering gray list.

According to Minister of the Interior Sar Kheng, Cambodia has presented its 10th round status update to FATF, which emphasizes “substantial progress” recorded since the 9th round assessment.

This follows FATF’s confirmation that Cambodia is still listed as a jurisdiction requiring increased monitoring, indicating that the country is actively collaborating with the organization to address what are referred to as “strategic deficiencies” in its Anti Money Laundering (AML) processes.

According to Sar Kheng, Cambodia decided to let FATF evaluate the country’s situation because it has properly implemented the organization’s suggested action plans. “We decided to allow the FATF to make an on-site visit to Cambodia,” he stated. “It will be a golden opportunity for Cambodia to be removed from the gray list. That’s the last goal of the mission of the national coordination committee.”

President of the People’s Center for Development and Peace, Yang Kim Eng, warned that “Though we may get off of the gray list soon, we must remember that if we allow the same problems to return, then the gray list will come back to Cambodia one day.”

The country’s major casino business is at the center of concerns about money laundering in Cambodia and concerns have been raised about an increase in crime, especially human trafficking, in locations like Sihanoukville and Bavet.

The government-led campaign to shut down unauthorized casinos and gambling dens, which PM Hun Sen announced, has turned its attention to these businesses.

The General Secretariat of the Commercial Gambling Management Commission of Cambodia (CGMC) has recently released new regulations for commercial casinos in an effort to stop unauthorized casinos from operating across the country.

Suggested Read: FATF to Conduct Checks & ‘Gray List’ Countries to Enforce Crypto AML Regulations