Earlier this month the US Department of State issued a rather pessimistic piece regarding investment in Cambodia. Their advisory for high risk investments mentions China in a number of places and makes for interesting reading, though most already in Cambodia will be aware of incidents and individuals mentioned. Still, useful information for those new to the country.
Real estate investment needs to be undertaken with due diligence as it has been identified as a mechanism for money laundering and Cambodia remains in the Financial Action Task Force's grey list. Less an issue for most, however for those companies with US subsidiaries or equity links there is always a need to pay attention to the details of such advisories given the long reach and broad scope of the Foreign Corrupt Practices Act.
https://www.state.gov/business-advisory ... -cambodia/
https://www.state.gov/cambodia-business ... eractions/
US Business Advisory
The money laundering issue is more a problem for the US government, than for the business itself. It only becomes a business issue, when the US government starts accusing businesses/people of money laundering. Take care, the contract/administration is OK (and not violating Western, especially EU, laws), and the business concerns are minor.
A far bigger business issue is the quality of the Cambodian laws, as well the non-transparancy of the legal system and often obviously sided application of the law. Going to court, to get what you miss, is just a lottery. Which makes business investments for anything that might draw attention and/or controversy a gamble. There will be little protection against government supported Chinese "attacks" on your business.
A far bigger business issue is the quality of the Cambodian laws, as well the non-transparancy of the legal system and often obviously sided application of the law. Going to court, to get what you miss, is just a lottery. Which makes business investments for anything that might draw attention and/or controversy a gamble. There will be little protection against government supported Chinese "attacks" on your business.
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