Cambodian Prime Minister Hun Sen chairs the Cabinet meeting (Photo: khmertimeskh.com)

The law is designed to assist authorities to fight money laundering and the financing of terrorism by identifying measures to “prevent, crackdown, and combat” such activities in Cambodia. After being passed by the cabinet, the law will be sent to the National Assembly for approval.

According to the government’s spokesperson Phay Siphan, the move came following the Asia Pacific Group on Money Laundering found that Cambodia does not have the appropriate legal basis and adequate enforcement mechanism related to penalties for money laundering and terrorism financing in line with international standards.

In 2019, Cambodia uncovered 75 money laundering cases. Authorities seized nearly 7.8 million USD, two houses, a land lot and more than 2,700 vehicles relating to money laundering activities.

Earlier, the Financial Action Task Force (FATF) placed the country on its grey list, which comprises countries “highly vulnerable to money laundering”./.

CPV/VNA