U.S. Advisory Warns Of Risks For Businesses With Ties To Cambodia – Finance and Banking

In a Business Advisory on “Excessive-Danger
Investments and Interactions,” the U.S. Departments of State,
Treasury and Commerce (collectively, the “Departments”)
highlighted authorized, reputational and financial dangers for U.S.
companies and monetary establishments with operations, consumer
relationships or provide chains that reach into Cambodia.
Individually, OFAC added two Cambodian people to its checklist of
Specifically Designated Nationals in accordance with the Global Magnitsky Designations Regulations.

As a consequence of “elevated and widespread corruption” in
Cambodia, in addition to its deteriorating human rights state of affairs, the
Departments suggested U.S. corporations to train acceptable warning in
reference to sure dealings within the nation. The Advisory
warned that transactions within the monetary, actual property, on line casino and
infrastructure sectors are marred by corruption and cash
laundering. As well as, the Advisory cautioned that quite a few
Cambodian entities are engaged within the trafficking of individuals, medicine
and wildlife, in addition to within the unlawful timber commerce and the usage of
compelled labor.

The Departments inspired acceptable due diligence to establish
these dangers, and suggested U.S. monetary establishments to evaluate
their potential publicity to purchasers engaged in illicit dealings and
“implement a mitigation course of that aligns with that danger,
per their [Bank Secrecy Act] necessities.”

Main Sources

1. S. Departments Advisory: Cambodia Business
   Advisory on High-Risk Investments and
   Interactions




2. OFAC Global Magnitsky Designations: Specially
   Designated Nationals List Update

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