US Sanctions: Heng Feng Bank in OFAC's Crosshairs

On April 24, 2026, the US Treasury's Office of Foreign Assets Control (OFAC) added Heng Feng Cambodia Bank plc to its sanctions list. The bank is accused of involvement in cybercrime operations, money laundering, and fraud targeting US citizens. For expats living in Cambodia, this decision has immediate consequences for their banking operations, particularly international transfers and dollar transactions. This article explains what changes concretely and how to secure your funds.

OFAC sanctions prohibit any US person or entity, as well as any transaction transiting through the US financial system, from conducting operations with Heng Feng Bank. Concretely:

• International transfers blocked. Any incoming or outgoing transfer via the US banking system is prohibited.
• Dollar services suspended. US dollar transactions are frozen, as they transit through US correspondent banks.
• Domestic services maintained? Deposits, withdrawals, and local riel transfers may continue, subject to decisions by the National Bank of Cambodia and the bank's liquidity.
• Accounts frozen. Dollar holdings may be blocked until sanctions are lifted.

The bank is accused of facilitating cybercrime and money laundering, which prompted this action by the US Treasury.

This situation is a harsh reminder that Cambodian banks do not enjoy the same protections as European banks. In Europe, deposits are guaranteed up to €100,000 by the state. In Cambodia, no similar guarantee exists. US sanctions also show that local banks can be exposed to geopolitical risks.

For an expat, having an account at a non-sanctioned bank like ACLEDA, Canadia, or ABA is safer. These banks are better capitalized and have solid banking correspondents. However, even they are not immune to US decisions. Banking diversification (multiple accounts at different banks) is a prudent strategy.

If you are a Heng Feng Bank customer, here are the steps to follow:

1. Contact your branch. Find out what services are still available and what restrictions are in place.
2. Transfer your funds. Open an account at a non-sanctioned bank (ACLEDA, Canadia Bank, ABA Bank) and transfer your money. Local riel transfers are likely still possible.
3. Check pending transfers. If you're waiting for an international transfer, contact the sender to redirect it to your new account.
4. Diversify your accounts. To avoid losing everything in case of another sanction, spread your deposits across multiple banks.

• Believing everything is normal. Even if domestic services still work, sanctions can expand. Don't delay taking action.
• Withdrawing everything in cash. Withdrawing large sums can attract attention and isn't safe. Prioritize a bank transfer.
• Ignoring correspondents. Even riel transfers can be blocked if they transit through a US bank.
• Thinking sanctions only affect Americans. OFAC sanctions apply to any transaction with the bank, regardless of the customer.

This situation is critical for Heng Feng Bank customers, particularly those who rely on international transfers or dollar accounts. For expats using other banks, it's a wake-up call to diversify their accounts. If you're not a Heng Feng Bank customer, you're not directly affected, but stay vigilant: other banks could be sanctioned in the future. The lesson: don't put all your eggs in one banking basket.