VZCZCXRO9442
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHPF #0401 1670437
ZNR UUUUU ZZH
R 160437Z JUN 09
FM AMEMBASSY PHNOM PENH
TO RUEHC/SECSTATE WASHDC 0831
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEATRS/TREASURY DEPT WASHDC 0041

UNCLAS PHNOM PENH 000401 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS 
BANGKOK FOR MICHAEL CARBONE 
 
E.O. 12958: N/A 
TAGS: EFIN ECON PGOV CB
SUBJECT: Counterfeit U.S. Currency on the Rise in Cambodia 
 
SENSITIVE BUT UNCLASSIFIED 
 
¶1. (SBU) Summary:  The National Bank of Cambodia (NBC) reports a 
significant increase of counterfeit U.S. currency circulating in 
Cambodia.  In recent months, the amount of fake bills forwarded to 
the NBC by commercial banks has tripled compared to the total amount 
received over the past decade.  Post is working with the NBC to 
develop guidelines for the confiscation and disposition of seized 
counterfeit U.S. notes and collaborating with the U.S. Secret 
Service in Bangkok to provide assistance in counterfeit detection 
techniques.  End Summary. 
 
¶2. (SBU) During a meeting with econoff June 4, the Deputy Director 
of the Issue Department of the National Bank of Cambodia (NBC), Ms. 
Uch Sokhom, expressed her concerns about the rising number of 
counterfeit U.S. notes forwarded to the NBC from commercial banks. 
Since 1998, the NBC has instituted a policy of removing counterfeit 
U.S. currency from circulation and has instructed all commercial 
banks and microfinance lending institutions to confiscate suspect 
counterfeit notes and forwarded them to the NBC for verification and 
disposal.  While she conceded that not all of the banks regularly 
cooperate with NBC in confiscating fake notes, she stated that over 
the course of the past ten years, the NBC has received approximately 
USD 10,000 in counterfeit U.S. notes. 
 
¶3. (SBU) According to Ms. Uch, counterfeit U.S. notes circulating in 
Cambodia are on the rise.  She explained that the amount of 
counterfeit notes forwarded by two of Cambodia's top banks have 
increased exponentially.  In the past six months, Acleda bank has 
provided over USD 10,000 in counterfeit notes, and the ANZ Royal 
bank has forwarded over USD 20,000.  She explained that of the USD 
100 bills confiscated, those dated 2001 and 2003 are the most common 
and many are "super bills."  She said that fake USD 20 bills tend to 
be dated 2006 and are of a poorer quality than the USD 100 bills, 
primarily photocopies rather than printing. 
 
¶4. (SBU) When econoff requested that the NBC forward to the Embassy 
any seized counterfeit U.S. notes that are not being retained for 
local prosecution or training purposes, she said that the NBC could 
send a photocopy of the notes, but not the original.  Given a 
general lack of public trust in the integrity of Cambodian 
officials, Ms. Uch explained that the bank must retain the original 
seized notes.  Customers from whom notes have been confiscated by 
commercial banks and then forwarded to the NBC regularly descend 
upon the NBC seeking to verify that the NBC has retained and is 
storing their confiscated bill(s), suspecting that the bank is 
collecting money for its own purposes.  Only by showing him or her 
the actual note will the aggrieved customer be satisfied that the 
NBC is doing nothing untoward. 
 
¶5. (SBU) Ms. Uch appealed for updated guidance on U.S. government 
policy regarding the confiscation and disposition of seized 
counterfeit U.S. currency.  In particular, she sought a formal 
letter from the U.S. Embassy requesting the NBC to confiscate 
counterfeit notes, mark them as counterfeit, and remove them from 
circulation.  This letter, she explained, is necessary to convince 
the less cooperative banks that the NBC has the "authority" to take 
such action and encourage their compliance.  She also requested USG 
assistance in the event the NBC decides to dispose of the seized 
notes. Post will provide the NBC with the requested updated 
guidelines and seek the NBC's cooperation in forensic analysis of 
the seized notes. 
 
¶6. (SBU) Given the increase of counterfeit U.S. currency circulating 
in Cambodia, the Embassy hosted a U.S. Secret Service-provided 
training on security features of U.S. currency and counterfeit note 
detection techniques for nearly 90 commercial bank staff and NBC 
officials in April.  Since then, the Embassy has received numerous 
requests for additional such training from the Ministry of Foreign 
Affairs, Cambodian National Police, the NBC, and the business 
community (the hotel industry is particularly concerned).  Post is 
coordinating with the U.S. Secret Service in Bangkok for future 
training opportunities, as well as exploring the possibility of 
conducting a media campaign to educate the general public about 
counterfeit U.S. notes. 
 
 
RODLEY