Risk Of Money Laundering Grows With Economy

With Cambodia currently seen as a country where the laundering of illicit cash may be going undetected, an international expert yesterday warned that economic growth and more international trade could leave the country open to financial crime. … Gert Demmink, a former head of supervision at the Netherlands’ central bank and a consultant on financial crime for GovRisk, said … money launders “seek out new economies where they can safely hide their money, conceal their money… make sure they will not lose due to high levels of corruption and make sure they can utilize the formal financial [system],” Mr. Demmink said… With economic growth in Cambodia having reached more than 7 percent over the past years and the value of the country’s import and exports rising fast, the risk of money laundering will increase, he said. … The U.S State Department’s Annual International Narcotics Control Strategy Report, published on March 1, in its section on financial crime in Cambodia, says the country had “significant money laundering vulnerability,” cash-based dollarized economy, informal financial systems porous borders and limited regulation. …

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