I did a bit of research shortly after arriving in Cambodia as to why it seemed so cut off from the world when it came to international business, especially in terms of financial services. For example, why PayPal doesn't operate normally here, why it's difficult to find payment gateways (to receive payments as businesses from online shops and services) and why as soon as you mentioned that you lived in Cambodia, nobody seemed to want to do business with you.

From my limited research, this was the main cause - that Cambodia was on the grey list of the FATF.

Hopefully now that it's been removed, Cambodia can start to open up more on the international stage and it will be easier to start up online businesses etc.

How Will Cambodia Benefit From FATF Grey List Removal
28/02/2023
[excerpt]
With the news last week that Cambodia had been removed from the Financial Action Task Force (FATF) grey list, there has been a lot of positive sentiment within government and business circles in the Kingdom. But how does Cambodia benefit from being removed from the so-called FATF grey list?

How Will Cambodia Benefit?
Cambodia was re-listed on the Grey List in 2019, and the government worked hard to have it removed, submitting its annual report to the international body in late 2022 which outlined efforts being made to fight financial crimes.

Among the changes that Cambodia has made since 2019, included addressing correspondent banking, wire transfers, internal controls, foreign branches, designated non-financial businesses and professions (DNFBPs), customer due diligence and sanctions for non-compliance with AML/CFT measures.

Kiripost reported that “FATF identified DNFBPs as real estate agents, dealers in precious metals or precious stones, and dealers of any saleable item of a price equal to or greater than USD $15,000.”

The FATF grey list removal means that Cambodia is less likely to face economic penalties or face sanctions from FATF member states and other international bodies.

This should mean that the Kingdom will promote greater confidence in capital investments into the country and foreign investments (minimising international cash flow issues) which are needed for continued development and growth.
https://www.b2b-cambodia.com/news/how-w ... t-removal/

Aussie Police Commander Pays Courtesy Call on Cambodian National Police Chief

Cambodia News, (Phnom Penh): On the afternoon of March 8, 2023, the Commander of the Australian Federal Police for Asia, Mr. Peter Sykora, paid a friendly visit to General Neth Savoeun, Cambodian National Police Commissioner.


Mr Sykora congratulated the efforts of the Cambodian National Police, which has resulted in Cambodia being removed from the FATF's grey list of countries at risk of money laundering.
He said that the Australian Federal Police Forces pledged continued support for the Cambodian National Police, and that they appreciated the results of the cooperation between the two countries' law enforcement agencies.

In addition, the Australian Federal Police will continue to offer vocational training courses for Cambodian police trainees to carry out their duties.

Regarding FATF... Hmmm. This is fishy. In fact, a lot of what Cambodia classifies as "money laundering" often involves carrying physical cash into the country. I think the FAFT is removing Cambodia for catching a lot of obvious underworld types bringing cash into the country on planes, etc..

But, there is another zone of money laundering that I strongly suspect, er, that I know is still going strong - and that Cambodia is doing nothing or very little about... Which is of course the TTing of money into the country from various places around the world.. . . .

Like from Macau, Hong Kong, China, Switzerland, Jersey, Seychelles, Mauritius, Grand Cayman, Bahamas, Singapore, and other offshore / transfer-by-numbered company havens. . . .

A lot of the wealthy Chinese, Koreans and others here are legit investors, but there is a goodly whack of front operators transferring big money from illegal trades from all over the world around the world everyday. Some or many are here, since it's so easy to incorporate, etc ...so, Cambodia is definitely one of the easier destinations for such money-laundering by electronic means. Cash flows directly into banks here with minimal fuss ... It's the "poor man's" or rather, the "shady Chinese gangster's" Switzerland, shall we say.

I am rather surprised the FAFT is not making more of an issue with respect to digital money laundering, which continues apace. There was a lull after the triads got the boot from Sihanoukville, but things are picking up again...

The FAFT sounds like a farce to me. Just saying. My take only...