• Politics

NGOs Fail in Money-Laundering Safeguards: Sokhonn

• By Phoung Vantha
• May 3, 2023 4:50 PM

PHNOM PENH – Fewer than half of nearly 450 foreign NGOs have submitted required financial reports while Cambodia works to boost anti-money laundering measures, Foreign Minister Prak Sokhonn says.

Sokhonn set out his concern at the opening of a consultative meeting with foreign NGOs on May 3.

He said the government had given NGOs a three-year grace period to adjust to their obligations under the Law on Accounting and Auditing, which was promulgated in 2016.

These obligations include proper accounting reporting, preparation of financial statements in accordance with Cambodia’s accounting standards, and independent audits of these statements.

“Despite the three-year grace period, less than 50%, out of the total 339 foreign NGOs registered with the Ministry of Foreign Affairs and International Cooperation, have submitted their required annual financial report,” he said.

“This is indeed a concern for us with regards to the NGOs’ commitment in fulfilling their obligations under this law.

“I am sure you have read in various national media that the Financial Action Task Force (FATF) based in Paris has removed Cambodia from the grey list of high-risk countries for money laundering on February 24,” he said.

“The delisting of Cambodia from the grey list was a monumental achievement which would not have been possible without the strong commitments of the Royal Government and all relevant stakeholders, including foreign NGOs as reporting entities.

“We are now conducting a national risk assessment to address the few remaining shortcomings.

“At no time should we ever allow our country to slide back to the grey list of high-risk countries for money-laundering activities. Needless to say, this would have a huge impact on the socio-economic development of our country.”