Financing the proliferation of weapons of mass destruction (WMDs) refers to the intentional provision or collection of property, funds, or other services with the knowledge or intent that they will be used to support the development or deployment of WMDs, including nuclear weapons, radioactive material, chemical weapons, or biological weapons.

This also apples to any future weapons with the potential to cause immense devastation, matching or exceeding the destructive power of known threats.

The Law on Combating the Financing of Proliferation of Weapon of Mass Destruction was promulgated by Preah Reach Kram No. NS/RKM/0620/019 on June 27, 2020, and is divided into eight chapters with 24 articles.

These determine the procedure for designation and consequent property freezes, applications to UN Security Council for delisting and the permission to use frozen property, as well as prohibitions and reporting obligations, and the seizure of frozen property.

They establish a framework for preventing, controlling, and ultimately eradicating the financing of WMD proliferation through such measures.

A property freeze refers to the prevention, sale, supply, lease, transfer, conversion, disposition, transfer or use of a property. 

Property freezes shall be carried out in accordance with the designation of an individual or entity made by the UN Security Council and its Committees, with the Cambodian Ministry of Foreign Affairs and International Cooperation, without delay, forwarding the resolution to the Ministry of Justice.

The Ministry of Justice shall then, without delay, make an ex-parte application to the court for a freezing order over all the following types of property. 

(a) Property that is wholly or partially, directly or indirectly, owned or controlled by a designated individual or entity, and not just those that may be linked to a particular act, plot or threat;

(b) The property of individuals or entities acting on the behalf of or at the direction of a designated individual or entity;

(c) Property diverted or generated from property as mentioned in paragraphs (a) and (b);

(d) Vessels designated by the UN Security Council or its Committees in accordance with any of the UN Security Council Resolutions as listed in the Annex of the Law.

A freezing order by the Court shall have an indefinite duration unless the order is revoked. 

If there are reasons to believe that an individual or entity meets the criteria for designation as specified in Paragraph 32 of the UN Security Council Resolution 2270 and the subsequent resolutions, the Minister of Justice may issue an injunction to the General Prosecutor of the Appeal Court or the Prosecutor of the First Instance Court, for the designation of individual or entity and the property freeze (see table).

Any individual or entity holding property frozen in accordance with the order issued by the court as aforementioned shall freeze the property without delay and without prior notice. 

Reporting entities that have frozen property in accordance with the list from the UN Security Council and by the Court shall report on the property freeze and any attempted transactions on the frozen property to the Cambodia Financial Intelligence Unit (CAFIU) not later than three days. 

Reporting entities shall submit a report on property freeze to the CAFIU and the CAFIU shall forward a copy to the Ministry of Justice. Reporting entities that have submitted reports shall expeditiously provide any other information about the report upon the request of the CAFIU or Ministry of Justice. 

Besides the reporting entities, individuals or entities that have property frozen in accordance with the list from the UN Security Council and by the Court shall report on the property freeze and any attempted transactions on the frozen property to the Ministry of Justice not later than three days. 

The Ministry of Justice shall forward a copy of this report to the CAFIU. The individuals or entities that have submitted reports shall expeditiously provide any other information about the report on the request of the Ministry of Justice or the CAFIU. 

Any person who violates the freezing order or makes property available or violates the reporting obligations set out in Combating the Financing of Proliferation of Weapons of Mass Destruction shall be punished severely according to the law in force. 

Prepared by: Securities and Exchange Regulator of Cambodia
Legal Affairs Department.
Email: [email protected].
Phone: 023 855 611.