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We’re not done yet… Multiagency Cambodia Business Advisory

Business Advisory and GSP Assessment for Cambodia

PRESS STATEMENT

NED PRICE, DEPARTMENT SPOKESPERSON

NOVEMBER 10, 2021Share

The United States has a long history of commitment to combatting corruption and supporting the rule of law in Cambodia and globally. Recent developments in Cambodia, including systemic corruption, transnational organized crime, and human rights abuses, threaten both U.S. national security interests and the fundamental freedoms of people in Cambodia.  U.S. officials have regularly raised these concerns with Cambodia’s leaders, but regrettably there have been no meaningful changes.

Today, the U.S. Department of State, the U.S. Department of the Treasury, and the U.S. Department of Commerce have jointly issued a business advisory to caution U.S. businesses currently operating in, or considering operating in, Cambodia to be mindful of interactions with entities involved in corrupt business practices, criminal activities, and human rights abuses.

This advisory addresses two primary areas of exposure for U.S. companies in Cambodia:

  • Illicit financial activities and related risks in the financial, real estate, casino, and infrastructure sectors; and
  • Entanglements with Cambodian entities involved in trafficking in persons, wildlife and narcotics trafficking, and related risks in some areas of the manufacturing and timber sectors.

Businesses should apply appropriate due diligence to mitigate the reputational, economic, and possible legal risks associated with potential exposure to entities in Cambodia that engage in corruption, criminal activities, illicit financial activities, or human rights abuses.

Additionally, the United States Trade Representative will conduct an assessment of Cambodia’s Generalized System of Preferences (GSP) eligibility as part of a broader GSP evaluation.  This assessment will be conducted following reauthorization of the program benefits and will include any new or amended eligibility criteria established by Congress.

The United States will continue to promote accountability for criminal activities, corrupt business practices, and human rights abuses through a whole-of-government effort and in close coordination with the private sector and our allies and partners.

Read the full business advisory here: https://www.state.gov/cambodia-business-advisory-on-high-risk-investments-and-interactions/.

And here is the Summary section of the Advisory – I will publish the other parts in separate posts:

Summary: The U.S. Department of State, U.S. Department of the Treasury, and U.S. Department of Commerce are issuing this advisory to caution U.S. businesses currently operating in or considering operating in Cambodia to be mindful of interactions with entities and sectors potentially involved in human rights abuses, criminal activities, and corrupt business practices.

This advisory addresses two primary areas of risk exposure for U.S. companies:

• Illicit finance activities in Cambodia and related risks for the financial, real estate, casino, and infrastructure sectors.
• Involvement with Cambodian entities involved in trafficking in persons, wildlife, and narcotics trafficking in Cambodia and related risks for the manufacturing and timber sectors.

Businesses with potential exposure to entities in Cambodia that engage in human rights abuses, criminal activities, or corruption should be aware of the reputational, economic, and possible legal risks. To mitigate these risks, businesses should apply appropriate due diligence policies and procedures.

Links:

OFAC Notice

State Department Press Release

Multiagency Business Advisory

Categories: Advisories Anti-Corruption Child Sexual Exploitation Guidance Human Trafficking Multiagency Advisories Narcotics Trafficking Wildlife Trafficking

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