Cambodia has moved closer to a new legal framework aimed at online fraud networks that use crypto, stolen data, and cross-border payment channels.
Lawmakers passed the country’s first cybercrime law focused on scam compounds as pressure grows on Southeast Asian states to shut down large fraud hubs.
The action follows months of stricter questioning by foreign authorities, law enforcement bodies and rights organizations. It is also part of a broader initiative by Cambodian officials to shut down scam operations and target money laundering and organized fraud individuals.
Law moves ahead
Cambodia’s parliament approved the draft law on Friday, giving the country its first statute built around scam-centre crimes. The measure targets online fraud, money laundering, data harvesting, and the recruitment of people into cyber scam operations.
Justice Minister Keut Rith said the law would support the current crackdown and help stop the compounds from returning after raids. He noted that the measure was meant to be “strict” and added that it would serve Cambodia’s economy, tourism, and investment climate.
The bill is not final yet. It still needs formal approval before it takes full legal effect. Reuters reported that the draft will go to the king for signature, while other reports said Senate review may come before the final step.
Still, the parliamentary vote marks a major shift. Until now, Cambodia had no law written specifically for scam compounds. As a result, prosecutors often relied on broader charges such as fraud, exploitation, or money laundering when handling these cases.
Penalties rise sharply
Prison terms and fines determined in the draft depend on the nature of the offense. According to Reuters, typical cyber scam crimes would attract two to five years imprisonment and a fine of up to $125,000.
In the meantime, those cases which involve organized groups or a large number of victims would be harder to punish. Under that structure, fines may go to 10 years with fines of up to $250,000.
Other reports described even harsher terms for top operators. According to that version, scam bosses could face 15 to 30 years in prison, or life sentences if their operations lead to deaths. It also said ringleaders could receive five to 10 years, with longer terms in cases linked to violence, trafficking, or forced labor.
Even with those differences in reporting, one point is clear: Cambodia wants stronger penalties for the people running these networks. The law also reaches beyond the direct act of fraud. It covers those who collect victim data, move illicit funds, or recruit workers into scam compounds.
That broader scope matters because these networks rarely rely on one role. One group may run the calls or messages, another may gather personal data, while another may move funds through crypto wallets, over-the-counter brokers, or shell firms. The draft aims at that wider chain.
Global pressure grows
The law arrives when Cambodia has increasing external pressure regarding the proliferation of crypto scam compounds. Such activities have been associated with bogus investment activities, romance fraud, and pig-butchering scams that defraud victims in most countries.
Crypto is a major focus of such crimes since it enables quick cross-border transfer. After the money is transferred to the victims, it may take only a few days to get transferred through various wallets, mixers, trading desks, or conversion services. That has rendered Cambodia a major target of regional enforcement.
Meanwhile, governments of other countries have intensified their efforts. On Thursday, Britain gave the go-ahead to the operators of what it termed as the biggest fraud web in Cambodia, as well as an online exchange that is utilized to buy and sell stolen personal information.
British authorities claimed the action was against a network of scam centres which are rapidly expanding in Southeast Asia.
Other cross-border cases have also put pressure in the recent months. Recently, Cambodia handed over Li Xiong, a former executive of a Cambodian financial conglomerate implicated in money laundering of criminal organizations to China.
Earlier this year, the government also arrested and extradited Chinese-Cambodian businessman Chen Zhi, who has been accused of running a scam and laundering scheme online.
There is a more acute tone of Cambodian authorities in those actions. Previously, the government has been accused of understating the issue and the previous crackdowns did not manage to contain the spread of the compounds. This time, authorities believe that the new campaign will close additional locations and target higher-ranking individuals.
Enforcement is the real test
The draft law may give Cambodia a clearer legal base, but the harder part comes next. Police and prosecutors will need to show that the rules can be used against the people who finance, manage, and protect scam compounds, not just lower-level workers found inside the sites.
That question matters because scam centres often operate like organized businesses. They rely on recruiters, guards, payment handlers, data suppliers, and laundering networks.
In some cases, rights groups and consultants have said workers are held in guarded compounds and forced to run fraud schemes.
Moreover, international cases have shown how large the market has become. U.S. authorities have pursued crypto seizures tied to pig-butchering scams, while Taiwan has indicted dozens of people in laundering cases linked to Cambodia-based networks.
A recent U.S. Treasury report to Congress also pointed to stablecoin laundering, hacking groups, and fake investment platforms as growing crime trends.
One U.S. case involved Jingliang Su, a Chinese national sentenced to 46 months in prison for laundering nearly $36.9 million stolen from U.S. investors through fake crypto platforms run from scam centres in Cambodia. Court records said 174 victims in the United States were tied to that scheme.