Tioulong Saumura: "A big part of money laundering comes from the buying and selling of pieces of land"

Assembly Passes Bill to Stem Money Laundering

Chun Sakada, VOA Khmer
Original report from Phnom Penh
30/04/2007

The National Assembly passed a bill Monday that would put money launderers in jail for up to one-year, in a move supporters say will improve Cambodia's investment climate.

Under the new law, which passed with the support of 77 of 123 National Assembly members, convicted money launderers could also meet with fines up to 5 million riel (about $1,250).

Employees of dirty institutions would not be prosecuted but would be encouraged to report suspicious financial activity.

Cheam Yiep, chairman of the National Assembly's Committee on Finance and Banking, said the law would strengthen investment confidence.

Opposition lawmaker Keo Remy agreed the law was important but worried about enforcement in Cambodia's cash economy.

Cambodia National Bank President Chea Chanto promised that Cambodian authorities would enforce the law.

Sam Rainsy Party lawmaker Tioulong Saumura said Saturday Cambodia's casinos and land were big draws for criminal money launderers.

"A big part of money laundering comes from the buying and selling of pieces of land," she said. "The criminals get $100 million, and they don't know how to move this money. So they take this money to buy a piece of land. That's why [Cambodian] land is very expensive."

Cambodia's National Assembly passes law against money laundering, terrorist financing

Monday, April 30, 2007
The Associated Press

PHNOM PENH, Cambodia: Cambodia's National Assembly on Monday unanimously approved legislation to combat money laundering and terrorism financing, but critics described the bill as too weak.

All 77 lawmakers who attended the assembly session voted for the bill, which was endorsed by the Cabinet last July.

The government hopes the legislation will boost investors' confidence in doing business in Cambodia and counter criticism that the country is a place for illegal financial activities.

The legislation must be passed by the Senate and signed by the king before it can take effect, but those steps are considered formalities.

Central bank Governor Chea Chanto called the legislation "an important legal instrument and foundation for thwarting and cracking down on any attempts of money laundering and terrorist financing in Cambodia."

But critics said it was weak because the maximum penalty is only one year in jail and a fine of 5 million riel (US$1,250; €920).

Son Chhay, a lawmaker from the opposition Sam Rainsy Party, said the penalty won't prevent people from committing financial crimes.

"On the contrary, they will be prepared to work against the law because the penalty is not really harmful to them," Son Chhay said.

His party's lawmakers, during the debate over the law, also questioned its significance in Cambodia, where financial transactions are largely carried out in cash rather than through the banking system.

"We see every day the flow of cash from one hand to another without having to go to the bank. That will make the law difficult to be used in dealing with money laundering," Son Chhay said, noting that many Cambodians still keep their money "under the pillows" at home.

In 2004, Heraldo Munoz, who then headed a U.N. committee on the al-Qaida terrorist network, warned that Cambodia's lack of anti-terrorism laws and weak law enforcement could allow Southeast Asia's Jemaah Islamiyah terror group to use the country as a base.

The comment drew an angry reaction from Prime Minister Hun Sen.