An aerial view of Phnom Penh (Photo: phnompenhpost.com) Phnom Penh (VNA) - Financial and private sector experts said that the recent removal of Cambodia from the “money laundering grey list” of the Financial Action Task Force (FATF) is an absolute necessity for Cambodia’s financial sector, adding it may bring added benefits with it as it can give more confidence to investors and thereby attract more foreign investment to the country.
In Channy, president and group managing director of ACLEDA Bank, said that the move reflects the government’s efforts towards that end to improve its ability to combat money laundering crimes in Cambodia.
Leaving the grey list not only enhances Cambodia’s image on the international stage, but also attracts foreign investment and facilitates the trade of local and international investors in all sectors, he added.
Kaing Tongngy, Cambodia Microfinance Association (CMA) spokesman, said that it was a good and important thing for Cambodia’s financial sector as it will provide more convenience for foreign investors who need to transfer money to the country.
He asserted that the Cambodia’s policy is open encouragement of foreign investment. Unfortunately, in 2019, the country was placed on the grey list, which made foreign investors face some difficulties. However, from now on, foreign investment in Cambodia should improve.
Meanwhile, Cambodia Chamber of Commerce (CCC) vice president Lim Heng said the private sector is very pleased with the removal as businesses were concerned about this issue as well.
He emphasised that at the present, Cambodia is a major exporter, especially for agricultural products for processing, while imports are also high, so there are many settlement transactions between local and foreign investors in USD. It is also good news for investors and it will give them confidence and convenience to invest in the country.
Ky Sereyvath, an economics researcher at the Royal Academy of Cambodia and director of its China Studies Centre, said that when Cambodia was grey listed, it created reluctance for foreign investors to invest here because they feared trade restrictions and a difficult process of for financial transactions.
He said he believes that Cambodia’s removal from the grey list will make it more attractive to foreign investors who wish to invest in the country.
According to economists and financial experts, when Cambodia was on the money laundering grey list, the international banks and foreign investors were reluctant to carry out financial transactions here or make investments in Cambodia due to concerns about problems and unforeseen risks.
During the meeting with a delegation of the US-ASEAN Business Council on February 28, Interior Minister Sar Kheng, who is chairman of the National Coordination Committee on Anti-Money Laundering, said that FATF’s removal decision is an achievement that will contribute in building investors' confidence in the investment climate as well as business in Cambodia./.
