Cambodia’s efforts to clean up its banking sector are facing renewed international scrutiny as concerns persist over alleged connections between financial institutions and cyber-scam networks. Despite closing several banks and payment institutions, the country continues to face pressure from the International Monetary Fund (IMF) and foreign governments to strengthen financial oversight and investigate potential links between criminal activities and the banking system. The controversy raises questions about the effectiveness of Cambodia’s reforms and the potential consequences for investor confidence and economic stability.
Banking sector under pressure
The National Bank of Cambodia (NBC) recently warned against rumors circulating on social media claiming that several banking and financial institutions were experiencing difficulties or could collapse. The central bank described the spread of unverified information as potential “economic sabotage,” arguing that such claims could undermine public confidence in the country’s financial system.
However, the regulator did not identify the individuals responsible for spreading the rumors or specify which institutions had allegedly been targeted. The warning came as Cambodia’s banking sector faced increasing international attention over allegations that some financial institutions had been used to process money connected to online scams.
The Cambodian government has established an Ad-Hoc Commission for Combating Online Scams and announced that law enforcement operations had eradicated large-scale online scam operations. Nevertheless, concerns remain. In its latest annual review of Cambodia, the IMF identified persistent scam activities as a potential threat to economic growth and called for urgent action to address possible connections between criminal groups and financial institutions.
IMF calls for stronger financial oversight
The IMF has urged Cambodian authorities to identify banks with potential links to criminal activity and take appropriate action. It also highlighted significant gaps in the country’s financial licensing framework, suggesting that regulatory weaknesses could undermine efforts to prevent illicit funds from entering the formal economy.
The concerns are significant because banks play a central role in protecting deposits, facilitating legitimate business transactions, and maintaining financial stability. If financial institutions are vulnerable to money laundering, the consequences could extend beyond individual banks, affecting investors, businesses, and international financial relationships.
The IMF’s recommendations emphasize the need for stronger supervision, effective licensing procedures, and closer cooperation among regulators. Authorities must also demonstrate that regulations are applied consistently, regardless of an institution’s ownership or political connections.
US sanctions intensify scrutiny
The United States has imposed sanctions on several Cambodian financial institutions and business figures over alleged connections to cyber-scam operations and money laundering. According to the supplied report, five of the six institutions closed by Cambodia’s central bank were among those targeted by US sanctions.
However, the reasons publicly provided by Cambodian and US authorities have sometimes differed. When the NBC revoked the licenses of three banks in August, it cited non-compliance with applicable laws and regulations without explicitly referring to alleged cyber-scam connections. The US Treasury Department had cited such alleged links when sanctioning the institutions.
These differences have raised questions about the circumstances behind the closures and the extent to which financial institutions may have been exposed to illicit activities. Greater transparency regarding regulatory decisions could help clarify the reasons for enforcement actions and strengthen public confidence.
Sanctions and allegations should not automatically be interpreted as proof of criminal guilt. Investigations, regulatory findings, and court decisions have different legal meanings, making accurate attribution essential when assessing individual institutions and their owners.
Anco specialized bank continues to operate
Anco Specialized Bank Ltd. is among the institutions attracting scrutiny. The bank was previously majority-owned by Cambodian senator and businessman Kok An, whose business interests have included casinos and resorts.
In April, the US Treasury Department sanctioned Kok An, alleging that properties associated with him housed scam centers whose occupants had stolen money from Americans. According to Anco Specialized Bank’s 2021 annual report, Kok An held 70 percent of its shares. However, the report cited in the supplied material could not establish the bank’s current ownership through more recent documentation.
Despite the sanctions against Kok An, Anco Specialized Bank continues to operate and reportedly holds an active license from the NBC. A representative of the bank ended a telephone conversation when questioned about its operations following the sanctions.
Kok An reportedly rejected the allegations in comments to Radio France Internationale’s Khmer-language service, saying he did not know about scamming. The available information does not establish that the bank itself has been convicted of wrongdoing.
The institution’s continued operation highlights questions about how Cambodian regulators assess banks associated with individuals facing international sanctions.
iBank Cambodia faces questions over ownership
Another institution under scrutiny is iBank (Cambodia) Plc., formerly known as B.I.C. (Cambodia) Bank Plc. The bank was acquired in 2020 by Cambodian businessman Yim Leak and subsequently adopted its new name.
Yim Leak has faced allegations and regulatory scrutiny in Thailand. According to the supplied report, Thailand’s Anti-Money Laundering Office froze approximately $590 million in assets linked to him and an associate as part of an ongoing investigation. Thailand’s Securities and Exchange Commission also filed criminal complaints against him in June and August, alleging failures to disclose certain share transactions within the required deadlines.
Cambodia’s business registry reportedly continues to identify Yim Leak as iBank’s chairman. The institution remains operational under its new name, and its commercial license has been transferred accordingly.
Yim Leak and iBank did not respond to requests for comment cited in the report. However, Yim Leak’s US legal representatives, Seiden Law, have disputed the allegations against him, describing him and his family as victims of guilt by association and political persecution. The firm stated that he had not been convicted of a crime in any country and was not personally sanctioned by the United States.
The UK Treasury has separately identified B.I.C. Bank as a subsidiary of a Cambodian company sanctioned over alleged involvement in cyber-scams and human trafficking. These developments highlight the complexities of evaluating bank ownership, international sanctions, and potential financial risks.
Six financial institutions have been shut down
Cambodia’s central bank has taken action against six institutions amid growing scrutiny of the country’s financial sector.
In August, the NBC revoked the licenses of CCU Commercial Bank Plc., HH Bank (Cambodia) Plc., and Heng Feng (Cambodia) Bank Plc., ordering their liquidation. The US Treasury had previously sanctioned these institutions, citing alleged connections to cyber-scam activities.
Earlier in 2026, the NBC revoked Panda Bank’s license, citing deteriorating financial conditions that had left the institution unable to provide normal banking services. Panda Bank had not been sanctioned by the United States, according to the report.
During the previous year, authorities also shut down Prince Bank Plc. and Huione Pay. Prince Bank was targeted in connection with US sanctions against the Prince Group, a Cambodian conglomerate accused by American authorities of operating large-scale cyber-fraud operations involving compounds reliant on human trafficking and forced labor. The Prince Group has strongly denied wrongdoing and described itself as a legitimate business organization.
Huione Pay, also known as H-Pay, was associated with the Huione Group, which US authorities accused of laundering proceeds from virtual-currency investment scams. The NBC said Huione Pay was liquidated after regulators observed cryptocurrency-related transactions that violated Cambodian regulations.
Although these closures demonstrate regulatory action, questions remain about whether enforcement measures are sufficient to address broader weaknesses in financial supervision.
Banking industry defends the wider sector
Rath Sophoan, chairman of the Association of Banks in Cambodia, has cautioned against generalizing allegations involving individual institutions to the entire banking sector.
According to the supplied report, four lenders targeted by US sanctions represented less than one percent of the approximately $100 billion in assets held by Cambodia’s 59 commercial banks as of December. He argued that the wider sector remains diverse and subject to NBC supervision.
His comments reflect concerns that widespread suspicion could damage legitimate institutions and discourage investment. Nevertheless, maintaining public confidence requires regulators to demonstrate that suspected misconduct is investigated fairly and that financial institutions comply with effective anti-money-laundering standards.
Transparency remains the key challenge
Experts cited in the report argue that Cambodia’s reform efforts have so far delivered limited results. George McLeod of the security and intelligence advisory firm Critical Risk Team said the continued operation of banks backed by individuals facing international sanctions or arrest warrants highlighted weaknesses in the country’s cleanup efforts.
Jacob Sims, a visiting fellow at Harvard University’s Asia Center, similarly argued that the most effective way for the NBC to protect the banking sector’s reputation would be to demonstrate that regulations and enforcement standards are being applied seriously.
Cambodia faces a difficult balance: protecting legitimate banks from unfounded rumors while investigating credible allegations of financial misconduct. Public statements alone are unlikely to restore confidence without stronger supervision, transparent ownership information, and consistent enforcement.
Ultimately, the success of Cambodia’s banking reforms will depend on whether authorities can identify institutions vulnerable to criminal activity, close regulatory gaps, and demonstrate accountability. The IMF’s warnings underscore that the issue extends beyond individual banks, potentially affecting Cambodia’s investment climate, international financial relationships, and long-term economic stability.
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