KHM · snapshot 2026-08-09
Cambodia
HighOverall risk score
53.3
Percentile of scored universe
62th
Data coverage
96%
vs Australia (16.1)
+37.2
Sanctions & banking access
Where sanctions make Cambodia hard to operate in — under Australian law, under US/EU extraterritorial reach, and in practice at the bank. Comprehensive frameworks force Very High; severe secondary exposure or severed banking floors the band at High; the rest is disclosure.
Australian sanctions
DFAT frameworks that legally restrict Australian companies
No framework, program, or de-risking pattern identified.
US/EU secondary sanctions
Extraterritorial programs that bind you regardless of Australian law
Major 2025 US/UK action against the Prince Group scam-compound network plus the FinCEN action against Huione Group; transaction-laundering exposure requires enhanced diligence
Banking access
Will correspondent banks actually move your money out
Heightened correspondent scrutiny of Cambodian payment flows after the Huione and Prince Group actions
Category breakdown
Political Stability & Governance
High6 indicators · 100% coverage
Economic Resilience
Low7 indicators · 100% coverage
Financial & Currency Risk
Medium5 indicators · 100% coverage
Business Environment
Very High4 indicators · 100% coverage
Security & Crime
Very High3 indicators · 80% coverage
Climate & Social Compliance
High4 indicators · 100% coverage
Technology & Digital
High4 indicators · 100% coverage
Cultural Distance
Insufficient dataInsufficient data · not in overall score
Key risks and considerations
Cambodia rates High for market entry — an overall risk score of 53.3, riskier than 62% of rated economies and 37 points riskier than Australia.
No Australian sanctions framework applies, but the practical picture is harder: US/EU designations require enhanced screening: Major 2025 US/UK action against the Prince Group scam-compound network plus the FinCEN action against Huione Group; transaction-laundering exposure requires enhanced diligence. Further, correspondent banking is constrained: Heightened correspondent scrutiny of Cambodian payment flows after the Huione and Prince Group actions.
The main risk drivers are no double-tax agreement with Australia, weak civic voice and accountability, pervasive organised crime (7.0/10), pervasive corruption and weak logistics performance.
Relative strengths: FX reserves, currency stability, GDP growth all rate Low, the least-risky rating band.
Possible mitigations
- Secondary-sanctions exposure. US/EU sanctions reach further than Australian law: screen counterparties against the OFAC SDN list as well as the DFAT list, remember that any USD transaction creates US jurisdiction, and obtain specialist advice before contracting with state-linked entities.
- Repatriation channel risk. Correspondent banks may refuse or delay payments even where they are legal: test the channel with pilot transfers before committing capital, maintain more than one banking relationship, consider non-USD invoicing where lawful, and build payment delays into working capital.
- Political violence. Consider political-violence and political-risk insurance, keep asset footprints light, and maintain an exit/continuity plan with defined triggers.
- Organised crime. Expect extortion, counterfeiting, and cargo-theft exposure: harden supply-chain security, vet logistics partners and distributors carefully, and avoid cash-heavy channels.
- Corruption and legal recourse. Run a strong anti-bribery program (Australian foreign-bribery law follows you abroad), conduct third-party due diligence, and seat dispute resolution offshore — arbitration clauses (e.g. SIAC or HKIAC) beat local courts.
- Payment security. Elevated sovereign/transfer risk: prefer confirmed letters of credit or export credit insurance over open account terms, and watch for import-payment restrictions.
Generated automatically from this snapshot’s indicator data — a starting point for analysis, not advice.
Indicators
| Indicator | Value | Risk score | Rating | Australia | Data source year | Source |
|---|---|---|---|---|---|---|
| Political Stability & Governance | ||||||
| Voice & accountability (WGI) | 27.6 | 93.4 | Very High | |||
| Government effectiveness (WGI) | 45.6 | 63.2 | High | |||
| Regulatory quality (WGI) | 44.9 | 71.5 | High | |||
| Rule of law (WGI) | 38.8 | 81.4 | Very High | |||
| Control of corruption (WGI) | 22.9 | 88.2 | Very High | |||
| Political stability & absence of violence/terrorism (WGI PV) | 68.1 | 47.1 | Medium | |||
| Economic Resilience | ||||||
| GDP growth (3-yr average, %) | 5.5% (3-yr avg) | 15.0 | Low | |||
| Growth volatility (10-yr std dev, pp) | ±3.6 pp | 52.6 | High | |||
| Government net debt (% of GDP) | 26.5 | 15.0 | Low | |||
| Inflation (CPI %, vs income-group target) | 2.4 | 35.0 | Medium | |||
| Current account (3-yr average, % of GDP) | -0.6% (3-yr avg) | 15.0 | Low | |||
| FX reserves (months of import cover) | 7.9 months | 10.0 | Low | |||
| GDP per capita (PPP, current intl $) | $8,543 | 74.1 | High | |||
| Financial & Currency Risk | ||||||
| Capital-account openness (Chinn-Ito KAOPEN) | 1.00 | 5.0 | Low | |||
| Currency stability (regime-aware classification) | Pegged — credible (reserve-backed, low inflation gap) | 12.0 | Low | |||
| Sovereign credit risk (OECD country risk classification) | Category 6 / 7 | 82.0 | Very High | |||
| FATF listing (grey / black list status) | Not listed | 0.0 | Low | |||
| Double-tax agreement with Australia | None in force | 100.0 | Very High | |||
| Business Environment | ||||||
| FDI regulatory restrictiveness (OECD FDIRRI) | 0.10 | 52.3 | High | |||
| Logistics performance (World Bank LPI) | 2.4 | 84.8 | Very High | |||
| Business readiness (World Bank B-READY pillar average) | 54.2 | 74.5 | High | |||
| Investment protection with Australia in force (BIT or FTA investment chapter) | In force | 0.0 | Low | |||
| Security & Crime | ||||||
| Armed-conflict intensity (battle deaths per 100k, 5-yr) | 0.2 | 79.5 | Very High | |||
| Intentional homicide rate (per 100k) | 1.8 | — | Insufficient data | |||
| Organised crime pervasiveness (GI-TOC criminality score) | 7.0 | 91.1 | Very High | |||
| DFAT Smartraveller advisory level | Level 2 — Exercise a high degree of caution | 40.0 | Medium | |||
| Climate & Social Compliance | ||||||
| Physical climate vulnerability (ND-GAIN vulnerability) | 0.472 | 60.3 | High | |||
| Disaster risk (INFORM Risk Index) | 4.5 | 67.5 | High | |||
| Modern-slavery prevalence (per 1,000) | 5.0 | 44.4 | Medium | |||
| Modern-slavery vulnerability score | 57.6 | 69.1 | High | |||
| Technology & Digital | ||||||
| E-government development (UN EGDI) | 0.6 | 61.9 | High | |||
| Internet users (% of population) | 68.5 | 67.5 | High | |||
| Cybercrime origination (World Cybercrime Index) | 0.4 | 30.0 | Medium | |||
| Secure internet servers (per million people) | 817.3 | 52.8 | High | |||
Per-indicator ratings are quartile bands of the 0–100 risk score. The Australia column shows the same indicator’s raw value for the Australian baseline in this snapshot.
Cultural distance
GLOBE 2004 societal practices · rated on distance from Australia · not in the overall score
Context — not scored
Unemployment
0.3%
Displayed, never scored: ambiguous for an entrant and unreliable where informal employment dominates. (2025, ILO modelled)
Trade agreement
Free trade agreement with Australia in force
Market access is decision-relevant but a benefit, not a risk — kept out of the rating.
Regional advisories
Higher levels apply in some areas (up to Level 4)
DFAT Smartraveller sub-national advice where it exceeds the overall level.
Compare with
A score means little on its own. These economies scored closest to Cambodia in this snapshot, which is the fastest way to see whether the rating is telling you something specific or something regional.