Heng Feng Bank Sanctioned by U.S. Treasury: What Changes for Expats

On April 24, 2026, the U.S. 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 U.S. citizens. According to the Treasury, the bank is controlled by Sai Aung Linn, also sanctioned, who held management and board positions.

Concretely, all assets and interests of the bank located in the United States or held by U.S. persons must be frozen. Transactions with U.S. entities are prohibited unless specially authorized. This sanction has repercussions far beyond the United States, as international financial institutions often avoid dealing with sanctioned entities to limit their compliance risks.

If you are a Heng Feng Bank customer, domestic services (deposits, withdrawals, local transfers) may continue to function, subject to decisions by the National Bank of Cambodia and the bank's liquidity. However, international wire transfers, access to dollar exchange services, and payments abroad are at serious risk of disruption or becoming impossible.

Even if you are not a customer of this bank, this sanction increases the vigilance of international correspondent banks across the entire Cambodian sector. Expect enhanced controls on your incoming or outgoing transfers, especially in U.S. dollars. Some banks may request additional documentation or temporarily suspend certain operations.

If you have an account at Heng Feng Bank:

• Contact your branch to learn which services remain available and what restrictions are in place.
• Anticipate transferring your funds to another non-sanctioned Cambodian bank, such as ACLEDA, Canadia Bank, or ABA Bank.
• Check if your pending wire transfers are blocked and inform your correspondents abroad.

For all expats:

• Use well-established banks that comply with international standards for significant transfers.
• Keep documentation of fund sources (employment contract, invoices, etc.) to facilitate compliance checks.
• Follow announcements from the National Bank of Cambodia (NBC) for official guidance.

Do not assume this sanction only affects direct customers. Wire transfers to or from Heng Feng Bank through intermediary banks may be blocked or delayed, even if you use another bank. Avoid using Heng Feng Bank as an intermediary.

Be wary of rumors: unofficial information circulates on social media. Refer only to OFAC and NBC announcements. Do not withdraw all your funds hastily without verifying your bank's actual situation.

Finally, do not overlook the impact on your visa: if you must justify financial resources, a frozen account can complicate renewal. Keep alternative statements.

The bank may seek restructuring or a change of ownership to attempt removal from the sanctions list. Customers must monitor official communications from the bank and the NBC.

At the sectoral level, this sanction could accelerate the strengthening of anti-money laundering controls across all Cambodian banks. Expats should expect stricter KYC (Know Your Customer) procedures, particularly for transfers exceeding $10,000 USD.

Finally, other institutions may be under scrutiny. Stay informed through reliable sources such as the OFAC website or local economic media.