IMF Labels Cambodia Casino Ownership Rules Deficient and Calls for Immediate Upgrades
The IMF has called Cambodia’s casino ownership framework deficient for omitting fit-and-proper tests on beneficial owners and legitimate source of funds checks. Most licenses renew around 2027, creating an opportunity for upgrades. Cambodia operates more than 100 casinos, recently revoking 18 licenses and suspending nine others.
SCCG Take — Regulators must use the 2027 renewal cycle to impose robust vetting, reducing vulnerability to criminal control while operators prepare for stricter suitability standards.
Cambodia’s legal framework for preventing criminals from owning or controlling casinos is “deficient” and “should be rectified swiftly,” according to the International Monetary Fund. The IMF made the assessment in its latest report on the country, published on Monday, and urged authorities to upgrade the ownership vetting process for casinos.
Most existing licences are expected to be renewed around 2027. The IMF identified this as a good opportunity to review licensees against upgraded requirements.
Prime Minister Hun Manet stated that Cambodia is looking to reduce gradually the number of casinos and tighten licensing requirements. The nation still has more than 100 legally licensed casinos in operation, a total the prime minister described earlier this month as “excessive.”
Deficiencies Highlighted in Current Requirements
The IMF report stated that the absence of fit-and-proper requirements for beneficial owners, as well as the absence of a requirement to establish a legitimate source of funds in the licensing of banks, payment institutions, and casinos, “is a significant vulnerability” that should be addressed as “a top priority.”
The Law on the Management of Commercial Gambling only requires major casino shareholders – those with a stake of 10 percent or more – and senior managers to have a “good reputation” and characteristics of “honesty and integrity.” In practice, the assessment by the Commercial Gambling Management Commission of Cambodia (CGMC) “does not go beyond reviewing certificates of criminal records submitted by applicants.”
The IMF suggested the legal framework should be amended to ensure that beneficial owners and shareholders, in addition to managers and directors, are subject to a “robust” fit-and-proper test.
Recent Enforcement and CGMC Framework Development
The CGMC is developing an integrity assessment framework for use in casino licence applications and renewals. This aims to strengthen oversight and establish suitability requirements for operators.
Authorities confirmed earlier this month that the licences of 18 casinos had been revoked as part of a nationwide campaign against online scam operations. Operations at another nine casinos were suspended pending further inquiries. These steps, as reported by GGRAsia, align with broader efforts to tighten the sector.
Reporting: GGRAsia
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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