Ministry urges NGOs to avoid money laundering

Ministry urges NGOs to avoid money laundering

The Ministry of Foreign Affairs called on Non-Governmental Organisations (NGOs) to “absolutely” avoid activities that engage or support money laundering or finance terrorism and the proliferation of weapons of mass destruction in an effort to avoid the Kingdom from being placed on a money-laundering blacklist.

Global money-laundering watchdog Financial Action Task Force (FAFT) placed the Kingdom on its “grey list” last year.

Cambodia has been included in a list of countries that are “highly vulnerable to money laundering” following reports that say the judicial system has high levels of corruption and that it lacks the will to investigate financial crimes.

“We are concerned that if Cambodia is placed on the blacklist, it will negatively affect the Kingdom, particularly the financial system and the flow of investment and tourism. Overall, it will affect our society,” a ministry secretary of state Luy David told reporters after a meeting yesterday.

This meeting was held to strengthen the cooperation between the government and NGOs and to raise awareness on the Law on Combating the Financing of Proliferation of Weapons of Mass Destruction, the Law on Anti-Money Laundering and Combating the Financing of Terrorism, and the obligations of NGOs.

David said so far the Kingdom has not found any NGO which engages in money laundering or supports terrorism. They abide by the Kingdom’s Lango law, and always cooperate well with his ministry.

“This is the Kingdom’s obligation as a member of the Asia/Pacific Group on Money Laundering to raise awareness of these laws to NGOs,” he said.

David said: “Cambodia always carries out all the UN’s circulated decisions when any person or entity is placed on its blacklist.”

Transparency International Cambodia executive director Pech Pisey told Khmer Times yesterday that all sectors have a role to play to prevent and fight against money laundering including banks and international nonprofit organisations.

“However, the high risk sector is not international non-governmental organisations, but casinos, property developments, and organised crime,” he said.

Executive director of the Affiliated Network for Social Accountability, San Chey, told Khmer Times yesterday that NGOs could not be engaged in money laundering because their finances are audited and their funding donors monitored.

“So, we are not worried about money laundering through NGOs. However, what we are concerned about is money laundering through investment firms that could abuse the state’s power,” he said.

Chey said the investment companies he is concerned about over money laundering are the ones that invest in the Kingdom and are connected with large scale natural resource destruction.

“Such moves have made us suspicious of the source of their money. Did they come to the Kingdom to launder money or destroy natural resources in Cambodia? Their acts should be carefully monitored,” he said. Khmer Times