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The new Law on Anti-Money Laundering and Combating the Financing of Terrorism (“2020 AML/CFT Law”) was promulgated by the Royal Kram No. NS/RKM/0620/021 dated 27 June 2020.
The 2020 AML/CFT Law replaced the Law on Anti-Money Laundering and Combating the Financing of Terrorism promulgated by the Royal Kram No. NS/RKM/o607/014 dated 24 June 2007 and the Law on Amendment of Article 3, Article 29, and Article 30 of Law on Anti- Money laundering and Combating the Financing of Terrorism promulgated by Royal Kram No. NS/ RKM/o613/ 006 dated 3 June 2013 and bring significant changes to customer due diligence measures, AML authority, and penalty provisions.
The 2020 AML/CFT Law listed out detailed procedures for customer due diligence measures. Reporting entities covered under the present Law shall apply a risk-based approach to the management and mitigation of their risks of money laundering and financing of terrorism.
The Cambodia Financial Intelligence Unit, law enforcement agencies, supervisory authorities as well as other competent government agencies entrusted with the prevention or control of money laundering and financing of terrorism shall establish their own operational mechanisms for:
Offence and punishment
| Offence | Punishment |
| Money Laundering Offence | an imprisonment from 2 (two) years to 5 (five) years and a fine from 100,000,000 (one hundred million) riels up to 500,000,000 (five hundred million) riels, or up to the value of fund or property which was the subject of money laundering. |
| The legal entity shall be subject to a fine from 200,000,000 (two hundred million) riels up to 1,000,000,000 (one billion) riels | |
| Denial of Providing Information | Imprisonment from 6 (six) days to 1 (one) month and subject to a fine from 10,000,000 (ten million) riels up to 100,000,000 (one hundred million) riels or any one thereof. |
| The legal entity shall be subject to a fine from 50,000,000 (fifty million) riels up to 200,000,000 (two hundred million) riels | |
| Negligence of Providing Transaction Reports | imprisonment from 1 (one) month to 1 (one) year, and will be subject to a fine from 50,000,000 (fifty million) riels up to 200,000,000 (two hundred million) riels or any one thereof. |
| The legal entity shall be subject to a fine from 200,000,000 (two hundred million) riels up to 500,000,000 (five hundred million) riels | |
| Violation of Disclosure of Information and Tipping Off | imprisonment from 1 (one) month to 1 (one) year, and will be subject to a fine from 50,000,000 (fifty million) riels up to 200,000,000 (two hundred million) riels or any one thereof. |
| The legal entity shall be subject to a fine from 200,000,000 (two hundred million) riels up to 500,000,000 (five hundred million) riels | |
| Violation of the Obligations to Keep Professional Secrecy | imprisonment from 1 (one) month to 1 (one) year, and will be subject to a fine from 50,000,000 (fifty million) riels up to 200,000,000 (two hundred million) riels or any one thereof. |
| The legal entity shall be subject to a fine from 200,000,000 (two hundred million) riels up to 500,000,000 (five hundred million) riels |
Advance Grand Formula Co., Ltd is licensed audit firm from Accounting and Auditing Regulator (ACAR Decision N0. 014), member audit firm of Kampuchea Institute of Certified Public Accountants and Auditors (license number C-00085) and tax agent from General Department of Taxation (license number TA202204002).
This Publication is intended for general guidance only and should not form the basic of specific decisions.
Should you need any further information or support, please contact us at: accounting@advancegroupkh.com (accounting), audit@advancegroupkh.com (audit), tax@advancegroupkh.com (tax) and number and telegram 085 36 8888 and 070 399 888.
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