Cambodia’s National Bank is stepping up anti-money laundering (AML) and counter-terrorism financing (CTF) efforts to prevent a return to the Financial Action Task Force (FATF) grey list. These efforts take place amid ongoing crackdowns on scam centers. Governor Chea Serey highlighted the importance of cross-border cooperation with law enforcement agencies and foreign partners to combat telecom scams, laundering, and terror financing. She warned that failing to maintain compliance could undermine public confidence. In addition, it could hurt investor trust, tourism, and financial flows.
Aggressive Raids Target Scam Operations
Authorities have therefore intensified operations against illegal casinos and fraud hubs, while imposing strict penalties to halt illicit activity. In addition, Cambodia’s Financial Intelligence Unit (CAFIU) works closely with international partners, actively enforcing court orders that freeze assets and revoke licenses. Meanwhile, the National Bank is conducting a second national risk assessment this year, carefully monitoring reporting entities for compliance with AML/CTF regulations. Notably, high-risk sectors include real estate, casinos, and legal services.
The high-profile arrest of Chen Zhi, former chair of Prince Group, and his extradition to China demonstrates Cambodia’s resolve. Following U.S. charges, assets linked to Chen’s Prince Bank and real estate units are being liquidated under regulatory supervision. This move signals zero tolerance for scam-related operations.
FATF Grey List History Drives Strategy
Cambodia has faced repeated grey list scrutiny. It first appeared in 2011, was delisted in 2015, returned in 2019, and was delisted again in 2023 after technical gaps were addressed. CAFIU reports that in the first half of 2025, major unreported cash transactions rose by 13.1%. Meanwhile, omissions in suspicious activity reports increased by 21.8% year-over-year. Under the 2020 AML/CTF Act, banks, insurers, casinos, and real estate agents must conduct customer verification, identify owners, and report suspicious activity. Cash transactions exceeding KHR 40 million (≈US$10,000) must be reported. Also, anonymous accounts are prohibited, and records are retained for five years.
National Bank Leads Coordinated AML Push
Governor Serey coordinates inter-agency efforts and international agreements to curb scam operations. Through targeted enforcement and data-driven risk assessments, high-risk areas are thus monitored effectively. For example, the Chen Zhi case illustrates Cambodia’s determination to liquidate illicit assets and, at the same time, deter copycat schemes.
Enhanced Enforcement and Compliance Tools
CAFIU’s rising investigations reflect proactive oversight, ensuring reporting entities meet compliance obligations. Law mandates thorough due diligence, preventing shady transactions at their source. Five-year record retention supports audits and closes loopholes. Furthermore, international partnerships expand Cambodia’s reach, allowing authorities to freeze cross-border flows linked to local scams.
Protecting Economic Growth and Reputation
Cambodia’s multi-pronged approach—enforcement raids, legal reforms, and international collaboration—aims to preserve economic stability. It also seeks to protect tourism and investment from fraudulent operations. With high-profile busts and ongoing compliance initiatives, the country is positioning itself to remain off FATF grey lists and foster sustainable, transparent growth.
