Cambodia Country Summary

FATF Status

Cambodia is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation relating to the implementation of anti-money laundering and counter-terrorist financing standards in Cambodia was undertaken in 2023. According to that Evaluation, Cambodia was deemed Compliant for 2 and Largely Compliant for 31 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 1 of the Effectiveness & Technical Compliance ratings.

Cambodia faces significant challenges with endemic corruption and organized crime, which are deeply intertwined with its governance and economic landscape. The pervasive corruption, particularly within the judiciary and law enforcement, deters foreign investment and fosters a climate where illicit activities, such as human trafficking and drug smuggling, thrive, often facilitated by transnational criminal networks and local complicity.

Cambodia's economy is experiencing steady growth, with a GDP increase of 5.3% in 2024 and a projected 5.5% in 2025, driven primarily by a resurgence in tourism and foreign direct investment (FDI). The government actively promotes a liberal investment climate through incentives such as 100% foreign ownership and tax holidays, yet challenges remain, including systemic corruption, inadequate infrastructure, and a limited skilled labor supply, which deter significant U.S. investment compared to regional peers. Despite these hurdles, Cambodia has seen a surge in Chinese FDI, particularly in infrastructure and manufacturing, and is enhancing its regulatory framework through various free trade agreements and ongoing reforms aimed at improving transparency and investor confidence.