Cambodia battles to avoid third FATF grey list placement amid scam crackdown | AGB
Summary
The National Bank of Cambodia (NBC) has stepped up cooperation with domestic and international agencies to tackle telecom fraud, money laundering and terrorism financing as Phnom Penh seeks to avoid a third placement on the Financial Action Task Force (FATF) grey list.
Authorities have launched aggressive enforcement actions: raiding illegal casinos and online fraud centres, revoking licences, freezing assets and extraditing high-profile suspects. The recent arrest and extradition of Prince Group chairman Chen Zhi to China is a flagship move, following US allegations of large cross-border fraud and asset seizures.
Cambodia’s Financial Intelligence Unit (CAFIU) has increased investigations and reporting compliance; the country continues to implement its 2020 AML/CTF law and will carry out a second national money-laundering and terrorism-financing risk assessment this year.
Key Points
- National Bank Governor Chea Serey said stronger cross-border cooperation is underway to combat systemic telecom fraud, money laundering and terror financing.
- The government has intensified crackdowns on illegal casinos and online fraud hubs, revoked licences and frozen assets linked to scam operations.
- High-profile arrest: Chen Zhi (Prince Group) was arrested in Cambodia and extradited to China over alleged large-scale fraud; related local businesses face liquidation.
- CAFIU reported increases in investigations: cash-declaration breaches rose 13.1% and failures to file suspicious transaction reports rose 21.8% year-on-year.
- The 2020 AML/CTF law requires reporting entities to perform customer due diligence, file suspicious transaction reports and keep records for five years; cash transactions over KHR40 million (~US$10,000) must be declared.
- FATF history: Cambodia was first grey-listed in 2011, removed in 2015, re-listed in 2019 and taken off the list in February 2023; authorities want to avoid re-listing now.
Content summary
Cambodia is facing reputational and economic risks from negative reporting about telecom fraud and scam hubs, which authorities say have already dented tourism and investor confidence. The National Bank and CAFIU are coordinating enhanced supervision of high-risk sectors — including real estate, casinos and legal professions — and improving monitoring and analysis tools.
Practical steps taken include license revocations, asset freezes, legal penalties and cooperating with international law enforcement. The government will continue AML/CTF supervision and complete a second national risk assessment to address persistent vulnerabilities.
Context and relevance
This story matters because a re‑listing on the FATF grey list would raise compliance costs, reduce foreign investment appetite and complicate cross-border banking for Cambodian businesses. The crackdown ties into wider regional trends: Southeast Asian states are under pressure to curb online fraud syndicates and tighten AML/CTF regimes to protect financial systems and tourism sectors.
For stakeholders in gaming, finance, real estate and international banking, the developments signal stronger enforcement and increased regulatory scrutiny — with immediate implications for licences, correspondent banking relations and investor risk assessments.
Why should I read this?
Short version: Cambodia’s trying to stop a reputation disaster that could hit investors, tourism and banks — and it’s cracking down hard (think arrests, licence pulls and asset freezes). If you work in finance, gaming or regional investment, this could change who you do business with — so yeah, worth five minutes of your time.