According to the US Institute for Peace (USIP), cybercrimes in Cambodia net over $12.5 billion annually. Anti Cyber Crime Department
In a world where digital crime is rapidly evolving, the battle between cybercriminals involved in fraud and money laundering and the authorities trying to stop them is intensifying.
Cambodia, frequently mentioned in international crime discussions, is under scrutiny from both domestic and global organisations.
Ministry of Interior spokesman Touch Sokhak has been vocal in defending the country’s stance in the fight against cybercrime and money laundering.
“Crime today is very different from the past. Traditional crimes were easier to control, prevent and suppress,” he said. “In this digital age or Industry 4.0 era, even superpowers struggle to manage these complex, evolving threats.”
Sokhak emphasised that the country is not a sanctuary for criminals, as some claim.
“Cambodia is committed to preventing and combating all forms of international crime, including those within its borders,” he added, highlighting the country’s extensive collaboration with other nations in information sharing, joint law enforcement, crime prevention and awareness-raising efforts.
However, Mina Chiang, an expert on human trafficking and cyber scams, takes a more critical view of the country’s role in facilitating money laundering. In an October 7 LinkedIn post, she asked provocatively, “Why is Cambodia a favourite money laundering haven for Chinese criminals?”
Her research, presented at an Interpol meeting in Tokyo, points to several factors that make Cambodia attractive for illicit financial activities.
Chiang noted that Cambodia is not part of the Common Reporting Standard (CRS), a global transparency framework created by the Organisation of Economic Co-operation and Development (OECD) to facilitate financial reporting between governments.
Without CRS obligations, the country has become a shelter for those looking to hide assets, particularly Chinese criminals, as highlighted in an Asia Financial article quoting her findings.
Chiang detailed several methods used for money laundering in Cambodia, including currency exchange, casinos and gold trading, all of which can be exploited by cybercriminals. Her most damning claim concerns the ease with which individuals can open bank accounts.
“Foreigners, particularly Chinese nationals, can open bank accounts in Cambodia within 30 minutes and withdraw large sums of US dollars without significant scrutiny,” Chiang said.
She added that the country’s visa-on-arrival policy and weak regulations on foreign currency exchanges make the country especially vulnerable to money laundering schemes.
In response, Sokhak argued that it is unfair to place the burden of global crime on developing nations like Cambodia, noting that even superpowers struggle with these evolving threats. He stressed that Cambodia should be seen as a partner in the global effort to fight crime, rather than a scapegoat.
He called for greater international cooperation instead of blaming individual countries, reiterating that it is unjust to expect developing nations to fully eradicate these crimes when even developed nations face similar challenges.
Sokhak emphasised that Cambodia should not be dragged into geopolitical disputes but supported through collaborative crime-fighting efforts.
Meanwhile, Chiang focused less on geopolitical arguments and more on the practical vulnerabilities that make the country appealing to criminals.
Chiang’s research reveals how Chinese-run scams are spreading from Cambodia to other non-CRS countries, including Myanmar, Laos and even as far as Armenia and Georgia.
“While Cambodia’s regulatory framework may offer a haven for illicit activities, more research and stronger measures are needed to close these loopholes,” Chiang concluded.
Sokhak emphasised that Cambodia has consistently taken steps to prevent and crack down on all forms of international crime, without focusing on any particular type.
“Superpowers and developed countries should offer some concessions to developing and affected states instead of imposing additional burdens on those already struggling,” he told The Post.
Cambodian officials and analysts have called for greater cooperation and support in combating cyber-scamming, criticising some reports for having a “hidden agenda”.
The US Institute for Peace (USIP) released a report on May 13, titled Transnational Crime in Southeast Asia: A Growing Threat to Global Peace and Security, which highlighted Cambodia’s role in large-scale cyber-scamming operations.
The report estimated returns from these scams exceed $12.5 billion annually and suggested strong links between criminal elites and money laundering.
It also claimed that the country’s removal from the intergovernmental Financial Action Task Force’s (FATF) grey list was due to government lobbying, potentially allowing the scamming industry to operate unchecked.
As of April, Cambodian authorities, in collaboration with Chinese law enforcement, deported over 130 Chinese suspects involved in cyber scams and gambling fraud. These joint operations reflect ongoing efforts to tackle large-scale cybercrime, often involving syndicates that exploit Cambodia’s financial system for money laundering.
