Cambodia’s legislative body approved groundbreaking anti-fraud legislation on Friday, marking the nation’s first law specifically designed to combat scam operations that have stolen billions from victims worldwide.
Justice Minister Keut Rith explained that the legislation aims to strengthen ongoing enforcement efforts throughout Cambodia while preventing these fraudulent operations from resuming after authorities shut them down.
“This law is strict like the fishing net, strict to ensure we don’t have the online scams anymore in Cambodia, strict in order to serve the interest of the Cambodian nation and people,” Rith explained to media representatives. He noted that these criminal enterprises have negatively affected Cambodia’s economy, tourism sector, and foreign investment.
The legislation now awaits Cambodia’s monarch’s final approval before taking effect.
Under the new statute, individuals found guilty of operating online fraud schemes face prison terms ranging from two to five years, along with monetary penalties reaching $125,000.
More severe consequences await those running organized criminal operations or targeting multiple victims, with potential sentences extending to 10 years behind bars and financial penalties up to $250,000. The law also establishes punishments for money laundering activities, collecting victim information, and recruiting individuals for fraudulent operations.
Previously, Cambodia lacked specific anti-scam legislation, forcing prosecutors to pursue charges under existing laws covering exploitation recruitment, serious fraud, and financial crimes.
This legislative action follows widespread criticism from human rights organizations and sanctions imposed by various nations worldwide, as Cambodia has been identified as a major hub for cybercrime operations.
On Thursday, Britain imposed sanctions on operators of what officials described as Cambodia’s largest fraud operation and a digital cryptocurrency platform used for trading stolen personal information. British authorities characterized this as part of a rapidly expanding network of Southeast Asian scam centers where workers are held in secured facilities and forced to commit online fraud.
Cambodian officials previously minimized the presence of these fraudulent compounds, and earlier enforcement efforts failed to significantly reduce their operations. Government representatives say the current campaign is more comprehensive, focusing on shutting down hundreds of locations and arresting high-level operators.
This week, Cambodia announced the extradition of Li Xiong, a former executive at a Cambodian financial corporation accused of laundering money for criminal organizations, to China.
In January, authorities arrested Chinese-Cambodian businessman Chen Zhi in Cambodia before extraditing him to China, representing a dramatic downfall for the young entrepreneur accused of operating a violent online scam and money laundering network.
