PHNOM PENH: Cambodia's new money-laundering law will now carry a jail term of up to five years, while those financing terrorists will be jailed for up to 20 years.
The new law, which aims to eliminate money laundering and terrorism financing in Cambodia, requires reporting entities, including banks, financial establishments, investment companies, money transfer services, real estate agents, casinos, non-governmental organisations and relevant services and businesses, to regulate their activities and store detailed information about their clients.
It also requires the reporting of cash transactions over a certain threshold and transactions flagged by the Cambodian Financial Intelligence Unit, reports the Phnom Penh Post.
If suspicious cash transactions involve terrorist financing, they have to be reported within 24 hours. According to an article of the law, the government had to prepare measures to curtail cash use in commercial transactions and encourage making non-cash payments.
Penalties for disobeying the new law could include warnings, fines, business licence revocations and the removal of officials or business managers from their positions.
On May 7, the European Union requested its parliament to add Cambodia and 11 other countries to a list of states that "pose significant threats" to the EU's financial systems for failures to tackle money laundering and terrorism financing.
In February last year, Cambodia was also relisted in the "grey list" of the Financial Action Task Force, a decision Cambodia said was "unfair".
Transparency International Cambodia executive director Pech Pisey said the adoption of the law on money laundering and terrorist financing was a welcome step in the right direction for Cambodia.
He encouraged the government and relevant authorities to enforce the law effectively and comply with anti-money laundering obligations.