Cambodia forms task force to address illegal gambling backlash
Cambodia has announced the creation of a new national cybercrime task force aimed at dismantling online scam networks, gambling-related fraud, and illicit financial flows that authorities say have damaged the country’s international standing. The initiative will be coordinated by the Ministry of Foreign Affairs and International Cooperation and will integrate multiple ministries, police agencies, and regulatory bodies in an attempt to streamline enforcement efforts.
Officials said the task force will prioritise the identification of criminal masterminds, disrupt organised networks, and offer support mechanisms for victims, many of whom have been trafficked from neighbouring countries through fraudulent recruitment schemes.
The authorities will be empowered to suspend websites, revoke business licences, and freeze bank accounts linked to illegal gambling platforms and scam operations. Reportedly, the government has pledged to upgrade digital surveillance infrastructure and forensic investigation capacity, arguing that regional cyber networks have become more sophisticated in recent years.
Collaboration with neighbouring nations
Announced during the ASEAN Summit in Kuala Lumpur, Malaysia, Cambodian officials said cooperation with South Korea, China, and ASEAN member states would be strengthened, including intelligence sharing and coordinated repatriation of victims trapped in scam compounds.
While Cambodia forbids domestic gambling for its citizens, foreign players are allowed in designated border casinos. Authorities claim that over the past two years, more than 1,000 gambling-related websites have been taken offline and bank accounts connected to digital-fraud activity have been frozen, demonstrating what they describe as a “firm commitment to safeguarding digital integrity”. The Ministry of Foreign Affairs added that collaboration with foreign embassies has already enabled multiple rescue operations.
The move follows mounting international pressure, including sanctions issued by both the United States (US) and the United Kingdom (UK) against Prince Holding Group. The Cambodia-based conglomerate, known for its significant casino operations, is accused of facilitating criminal networks under the guise of legitimate investment activity.
Prosecutors in Brooklyn recently unsealed an indictment against the firm’s 37-year-old founder, Chen Zhi, also known as Vincent, alleging wire-fraud and money-laundering conspiracies. US officials describe Chen as the “mastermind” of a sprawling cyber-fraud enterprise that exploited trafficked workers to run so-called “pig-butchering” scams, which lure investors into fraudulent cryptocurrency platforms. If convicted, Chen faces decades in prison, though he remains at large.
Last month, the US Treasury labelled 146 individuals tied to scam networks as part of a transnational criminal organisation, calling the action the most extensive enforcement effort undertaken in Southeast Asia. The UK government has frozen 19 London properties reportedly linked to illicit profits, worth more than €115 million, in an effort to deny criminals access to overseas assets.
Cambodia’s credibility at risk
Cambodia’s reputation has come under severe strain, with the United Nations Office on Drugs and Crime identifying the country as a global hub for organised scamming operations. Rights groups report forced labour, trafficking, and torture inside compounds located in areas such as Sihanoukville and border-zone casinos. However, Phnom Penh strongly rejects these claims.
Furthermore, neighbouring Thailand has complained that casino hubs along the border feed regional gambling networks and online betting markets. Analysts say weak regulatory oversight, corruption, and political patronage have contributed to the problem, raising concerns for international investors and compliance officers.
Be part of the action at SiGMA South Asia, 30 Nov – 02 Dec 2025. Colombo becomes the heart of gaming as 5,000 delegates, 100+ speakers, and 1,000 operators gather under one roof. With high-value traffic, game-changing insights, and unforgettable networking, this is where new markets meet new horizons.
