Cambodia Cracked Down on Banks Allegedly Linked to Cyber-Scams. The IMF Says the Problem Persists

OCCRP reports that Cambodia’s central bank, the National Bank of Cambodia, has shut down around half a dozen banks since last year as international attention has focused on the country’s role as a hub for cyber-scams, with scam proceeds alleged to have flowed into its financial institutions.

Despite the closures, the International Monetary Fund’s latest annual review of Cambodia flagged persistent scam activity as a threat to growth and urged the authorities to identify and deal with potential links between banks and criminal groups and to close gaps in licensing. The US Treasury has also sanctioned Cambodian financial institutions over alleged laundering of scam proceeds.

The article notes that the central bank did not cite scam links when it delicensed the banks, and did not respond to OCCRP’s questions. For compliance teams, it underlines the continuing correspondent banking and payments risk associated with the region.

Article Credit: https://www.occrp.org/en/feature/cambodia-cracked-down-on-banks-allegedly-linked-to-cyber-scams-the-imf-says-the-problem-persists