An aerial view of Phnom Penh (Photo: phnompenhpost.com) Phnom Penh (VNA) - Financial andprivate sector experts said that the recent removal of Cambodia from the “moneylaundering grey list” of the Financial Action Task Force (FATF) is anabsolute necessity for Cambodia’s financial sector, adding it may bringadded benefits with it as it can give more confidence to investors andthereby attract more foreign investment to the country.
In Channy, president andgroup managing director of ACLEDA Bank, said that the move reflects the government’s efforts towards that end to improve itsability to combat money laundering crimes in Cambodia.
Leavingthe grey list not only enhances Cambodia’s image on the international stage,but also attracts foreign investment and facilitates the trade of local andinternational investors in all sectors, he added.
KaingTongngy, Cambodia Microfinance Association (CMA) spokesman, said that it was agood and important thing for Cambodia’s financial sector as it will providemore convenience for foreign investors who need to transfer money to thecountry.
Heasserted that the Cambodia’s policy is open encouragement of foreign investment.Unfortunately, in 2019, the country was placed on the grey list, which madeforeign investors face some difficulties. However, from now on, foreigninvestment in Cambodia should improve.
Meanwhile,Cambodia Chamber of Commerce (CCC) vice president Lim Heng said the privatesector is very pleased with the removal as businesses were concerned aboutthis issue as well.
He emphasisedthat at the present, Cambodia is a major exporter, especially for agriculturalproducts for processing, while imports are also high, so there are manysettlement transactions between local and foreign investors in USD. Itis also good news for investors and it will give them confidence and convenience to invest in the country.
KySereyvath, an economics researcher at the Royal Academy of Cambodia anddirector of its China Studies Centre, said that when Cambodia was grey listed,it created reluctance for foreign investors to invest here because they fearedtrade 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 toforeign investors who wish to invest in the country.
Accordingto economists and financial experts, when Cambodia was on the moneylaundering grey list, the international banks and foreign investors werereluctant to carry out financial transactions here or make investments inCambodia due to concerns about problems and unforeseen risks.
During the meeting with a delegation of the US-ASEANBusiness Council on February 28, Interior Minister Sar Kheng, who is chairmanof the National Coordination Committee on Anti-Money Laundering, said thatFATF’s removal decision is an achievement that will contribute in building investors' confidence in the investment climate as well as business in Cambodia./.
