The National Bank of Cambodia (NBC) issued a statement late on October 18 to reassure the public that all customer accounts are still available for access and are safe after reports of difficulties in withdrawing money from Prince Bank following US and UK sanctions.
The National Bank of Cambodia emphasizes that all financial institutions have a legal obligation to maintain sufficient liquidity to meet withdrawal needs.
The announcement came four days after the Office of Foreign Assets Control (OFAC) under the US Treasury Department and the Department of Foreign Affairs, common prosperity and development (FCDO) imposed sanctions on Prince Bank, the bank's parent company, Prince Group, and 143 other organizations and individuals across Cambodia and abroad for alleged fraud and money laundering.
The National Bank of Cambodia said it is carefully considering ensuring Prince Bank complies with Cambodian law, and affirmed that it is taking necessary measures to maintain normal operations for customers' accounts, especially the safety of customers' deposits.
The Central Bank of Cambodia also noted that in recent days, customers of Prince Bank and other banks have begun to withdraw deposits due to concerns. The central bank reaffirms that Cambodian financial institutions operate in accordance with strict regulations and maintain sufficient cash liquidity to meet customers' withdrawal needs.
On October 17, Prince Bank announced that it had appointed an international lawyer to conduct a comprehensive assessment of the sanctions. The bank said it is working closely with authorities to build a clear roadmap to remove the bank from the sanctions list as quickly and effectively as possible.
However, many customers expressed their anger on the bank's Facebook page, complaining that USD transactions were delayed or could not reach the recipients. Some customers are concerned that their money could be frozen due to the sanctions.
In response, the bank affirmed that operations, including mobile applications and ATMs, are still operating normally and the financial situation is still strong.
The Board of Directors would like to ensure to the public that Prince Bank maintains sufficient liquidity and is fully capable of payment. To our customers: Your deposits and financial benefits are still guaranteed to be safe" - the statement emphasized.
Prince Bank is one of the largest commercial banks in Cambodia. Meanwhile, Prince Group has a significant impact on the Cambodian economy through real estate, finance and hotel projects.
However, the group is facing increasingly serious allegations of violations, including operating online fraud centers, defrauding billions of dollars from victims around the world and engaging in human trafficking. As shocking revelations about the parent company spread, public confidence in its subsidiary, Prince Bank, declined sharply.
