By Adrian M. Reodique
Sept. 20, 2016
The Anti-Money Laundering Monitoring and Analysis Centre of China, and Cambodia's Financial Intelligence Unit have signed a memorandum of understanding (MOU) aims to curb money laundering and terrorism financing in their countries.
According to a report by Regulation Asia, the partnership will focus on capacity building, training and technical assistance.
In the Basel Anti-Money Laundering (AML) Index 2016 of the Basel Institute of Governance, Cambodia ranked six out of 149 markets in the most vulnerable countries to money laundering, with a risk score of 7.89. China ranked 99, with a risk score of 5.12.
The Basel AML Index ranks countries according to their risk of money laundering and terrorism funding. The risk score is based from 14 indicators which deals with AML/CFT (combating the financing of terrorism) regulations, financial standards, corruption, political disclosure and rule of law.
Meanwhile, the 2016 International Narcotics Control Strategy Report (INCSR) of the US State Department, attributed the money laundering vulnerability of Cambodia to its weak AML regime, cash-based and dollarised economy, inadequate supervision on banking and financial industries, "porous" borders, and unregulated or under-regulated non-financial sectors such as the real property and gaming.
The report added "weak judicial system" and "endemic corruption" contribute to the country's money laundering vulnerability.