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3 May 2022

Cambodia: Two NGOs complain to IFC alleging 6 banks and micro-finance institutions of human rights violations and violations of IFC performance standards; AMRET responds

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The Compliance Advisor Ombudsman of the International Finance Corporation (IFC) has accepted and will move ahead with its review of a complaint alleging human rights violations and violations of IFC performance standards committed by six microfinance institutions and banks that offer microloans in Cambodia.

The complaint was filed on behalf of affected borrowers by Equitable Cambodia (EC) and the Cambodian League for the Promotion and Defense of Human Rights (LICADHO). It details how the IFC failed in its obligation to conduct due diligence and supervise projects to ensure compliance with performance standards. As a result, grave harms resulted from IFC loans and investments in six microfinance institutions (MFIs) and microloan-providing banks in Cambodia – ACLEDA, Hattha Bank, Sathapana, Amret, LOLC, and Prasac – who together hold about 75% of the country’s microloans.

The complainants are calling for the IFC’s Compliance Advisor Ombudsman (CAO) to launch a swift, independent investigation into the harms caused by these investments.

Company Responses

ACLEDA Bank

No Response

Prasac Microfinance

No Response

Hattha Bank

No Response

Sathapana Bank

No Response

LOLC (Cambodia)

No Response

Timeline