The International Finance Corp. (IFC) rejected the key findings of its internal watchdog, the Compliance Advisor Ombudsman (CAO). A CAO investigation published June 24, 2026, found the IFC violated policies by failing to prevent predatory microfinance lending in Cambodia. These practices led to human rights abuses and coerced land sales for borrowers.
The IFC board refuted the non-compliance findings, attributing the issues to systemic flaws in Cambodia’s financial sector. CAO Director-General Janine Ferretti resigned in response to the board's decision.
The investigation involved six lenders, including Prasac, owned by Korea’s KB Financial Group. It also included Hattha Bank, a subsidiary of Japan’s Mitsubishi UFJ Financial Group. While the IFC presented a plan to aid specific complainants, human rights groups criticized the move as a setback for institutional accountability.