Does Cambodia implement an autonomous sanctions regime?
What is the nature of the sanctions regime in Cambodia?
Cambodia’s primary sanctions regime is the implementation of UN resolutions and other international sanctions. This is done through the Law on Anti-Money Laundering and Combatting Terrorist Financing 2007 (“the AML Law”), the Law on the Amendment of the AML Law 2013, and other sub-decrees, prakas and guidelines.
Cambodia has also issued laws requiring “reporting persons” to participate in anti-money laundering programmes, including:
the Law on Combatting Money Laundering and Terrorist Financing 2007;
Prakas 89 on Anti-Money Laundering and Combatting the Financing of Terrorism 2008;
Prakas on Anti-Money Laundering and Combatting the Finance of Terrorism Relating to All Reporting Entities not Regulated by the National Bank of Cambodia 2010;
Sub-decree on the Establishment of the National Coordination Committee on Anti-Money Laundering and Combatting the Financing of Terrorism 2012; and
the Sub-decree on Freezing of Property of Designated Terrorists and Organisations 2014 (the “2014 Sub-decree”).
“Reporting persons” include all institutions regulated by the National Bank of Cambodia as well as certain other institutions and professions including securities brokerage firms, insurance companies, investment and pension funds, lawyers, notaries, accountants and asset managers.
Lastly, terrorists or organisations listed by UNSC Resolution 1267 are subject to immediate court orders for the freezing of their funds and property, pursuant to Article 4 of the 2014 Sub-decree.
Does Cambodia maintain a list of sanctioned individuals and entities?
Yes. Article 4 of the 2014 Sub-decree states that, upon notification by the UN, the Ministry of Justice must immediately publish details of designated individuals or entities upon its website. The Cambodian Financial Intelligence Unit (the “CAFIU”) must also publish on its website the listing or delisting of UN designated persons in order to distribute this to “reporting persons”.
Are there any other lists related to sanctions?
No. However, Cambodia maintains a highly confidential list of persons who have been reported for suspicious activities.
Does Cambodia have a licensing or authorisation system in place?
All banks and related financial institutions are licensed, regulated and supervised by the National Bank of Cambodia. All insurance companies are licensed, regulated and supervised by the Ministry of Economy and Finance. Securities transactions are licensed, regulated and supervised by the Securities Exchange Commission of Cambodia. There is no specific licence dealing with AML activities; however CAFIU has implemented an electronic reporting system that enables entities to report cash transactions and suspicious transactions more efficiently.
What are the consequences for a breach of sanctions in Cambodia?
The consequences for a breach of sanctions include a warning, reprimand, prohibition or constraint of operation, confiscation of business licence, request for termination of the concerned manager or official, order to detain the outcome of the money laundering or terrorist financing activity, and being subject to a law suit.
The consequences for money laundering include imprisonment from two to five years and confiscation of related property. Legal entities may be criminally responsible for offences committed on their behalf.
The consequences for failing to provide information or breaching confidentiality in relation to money laundering include a fine of between US$250 and US$1,250 and imprisonment of up to one year.
Who are the relevant regulators in Cambodia and what are their contact details?
The CAFIU within the National Bank of Cambodia is responsible for sanctions and anti-money laundering enforcement.
Cambodian Financial Intelligence Unit
PO Box: 67
22-24 Preah Norodom Boulevard
Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.