Cambodia Turns Anti-Scam Focus Toward Licensed Casinos

Cambodian authorities are set to target licensed casinos suspected of serving as fronts for illicit cybercrime as they extend a yearlong enforcement push beyond physical scam compounds. The move comes as officials aim to close loopholes that allow criminal operations to hide behind legal business structures.

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Senior Minister Chhay Sinarith said during an interview on Wednesday evening on the sidelines of an anti-scam conference in Phnom Penh that the next move must involve action on casinos, as some are suspected of involvement in online scams and gambling. He noted that as licensed entities, these operations can still hide behind a legal shell, which is why authorities must restrict and impose stronger management and inspection at casino sites.

Enforcement Expands Beyond Scam Compounds

The shift follows Cambodia’s claim that it has completely dismantled all large-scale scam compounds on its territory after an enforcement drive that deported thousands of foreign nationals. Over the past year, authorities have raided hundreds of sites and, according to state media, audited all 195 licensed casinos nationwide, leading to the suspension of several linked to illicit operations.

Cambodia’s transformation began more than a decade ago with Chinese gaming investment and property speculation. When an online gambling ban, followed by the COVID-19 pandemic, hollowed out tourism, criminal syndicates repurposed resorts, condominiums, and casinos into huge scam compounds. The new phase of enforcement seeks to prevent these venues from being used again for fraudulent activities.

The audit of all licensed casinos represents a significant step in the government’s effort to separate legitimate gaming operations from those involved in cybercrime. Several casinos have already been suspended as part of this process, signaling that authorities are willing to take action against non-compliant establishments.

Financial Networks Under Scrutiny

Alongside casino enforcement, Chhay Sinarith said investigators are expanding financial inquiries into the corporate holdings and subsidiary networks tied to alleged scamming outfits, including conglomerate Prince Group. Prince Group Chairman and alleged scam mastermind Chen Zhi was arrested in Cambodia and returned to China in January.

Officials must investigate the financial network of the criminals, because most of the time the criminal proceeds are laundered through legitimate business, the minister said. He added that authorities are actively investigating around 30 Prince Group subsidiaries as well as offshore assets in jurisdictions including Singapore, the US, and the UK.

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The concentration on financial networks emphasizes the intricacy of tracing and dismantling cybercrime groups. Through tracing the finances via corporate networks and offshore accounts, it is hoped that the true scope of financial crime can be uncovered and brought to justice.

Calls for Stronger Victim Support

While there are claims of successful operations, according to Bryony Lau, the deputy Asia director at Human Rights Watch, there is a need for Cambodian authorities to ensure that there is effective screening and identification of those who are released as trafficking victims from the cyberscams. It is important to note that the human cost involved in such activities is much more than financial.

Furthermore, there is a need to make sure that such abusive camps are not allowed to come back to Cambodia through an independent and transparent investigation of ruling party lawmakers and influential businessmen who are suspected to be behind cyberscams. Her comments point to the need for accountability at higher levels to prevent the resurgence of criminal networks.

Next Phase of Casino Oversight

The upcoming crackdown on licensed casinos marks a new chapter in Cambodia’s anti-scam campaign. By targeting venues that may be operating under the cover of legality, authorities hope to close gaps that have allowed criminal activity to persist.

Stronger inspections and management requirements are expected to be imposed on casino sites as part of this effort. The goal is to ensure that licensed establishments operate within the law and do not serve as conduits for online fraud or other illicit activities.

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Source: The Japan Times