Cambodia

Global sanctions guide

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  1. Does Cambodia have a sanctions regime in place? 

Yes, Cambodia has adopted laws and regulations in relation to a sanctions regime, notably the Law on Anti Money Laundering and Combatting Terrorist Financing dated 24 June 2007 (the “AML Law”), the Law on the Amendment of the AML Law dated 3 June 2013 (the “Amended AML Law”), and other relevant Sub-Decrees, Prakas and Guidelines related to Anti Money laundering and combatting terrorist financing in order to implement UNSC Resolutions and recommendations of other international organizations.

  1. Does Cambodia implement UN sanctions? 

Terrorists or organizations listed under UNSC Resolution 1267 are subject to immediate court orders for the freezing of their funds and property, pursuant to Article 4 of the Sub-decree on Freezing of Property of Designated Terrorists and Organisations (2014) (“the 2014 Sub-decree”).

  1. Does Cambodia implement an autonomous sanctions regime? 

No.

  1. What is the nature of the sanctions regime in Cambodia? 

Cambodia has 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 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. “Money laundering” includes the conversion or transfer of property for the purpose of concealing or disguising its illicit origin. “Financing of terrorism” means a wilful provision or collection of funds with the intention or knowledge that such funds may be used for the purpose of supporting terrorism, terrorist acts or terrorist organizations.

  1. Does Cambodia maintain a list of sanctioned individuals and entities? 

Yes. Article 4 of the 2014 Sub-decree states that, upon the UN notifying designation of an individual or entity, the Ministry of Justice must publish this on its website. The Cambodia Financial Intelligence Unit (the “CAFIU”) must also disseminate the listing or delisting of UN designations to reporting entities, by publishing the list on its website.

  1. Are there any other lists related to sanctions? 

There are no other lists related to sanctions per se, but Cambodia maintains a highly confidential list of people who have had a suspicious action reported against them.

  1. Does Cambodia have a licensing or authorisation system in place? 

The CAFIU has implemented an electronic reporting system that enables entities to report cash transactions and suspicious transactions more efficiently.

  1. What are the consequences for a breach of sanctions in Cambodia? 

Disciplinary punishment against reporting persons who fail to comply with Cambodian anti-money laundering laws may include warning, reprimand, prohibition or constraint of operation, confiscation of business license, request for termination of concerned manager or official, order to detain the outcome of the money laundering or terrorist financing activity, and being subject to a law suit. Punishment against persons who are required to provide information or to maintain confidentiality with respect to anti-money laundering information may include a fine of between US$250 and US$1,250 and imprisonment of up to one year. The courts may order confiscation of property related to money laundering or terrorist financing offences. Under the Criminal Code, individual money launderers may face imprisonment of two to five years, together with fines. Legal entities may be criminally responsible for offences committed on their behalf.

  1. 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, Phnom Penh  Cambodia

T: (+855) 23 427 933
F: (+855) 23 427 933
E: cafiu_report@nbc.org.kh (for submitting reports) /  cafiu_info@nbc.org.kh (for other communications)
www.nbc.org.kh/cafiu

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Contributor law firm

Tim Holzer and Guillaume Massin, DFDL Mekong, 33, Street 294 (Corner Street 29), Sangkat Tonle Bassac, Khan Chamkarmon (PO Box 7), Phnom Penh, Cambodia

T: (+855) 23 210 400
F: (+855) 23 214 053
cambodia@dfdl.com
http://www.dfdl.com/