Cambodia has taken a significant step toward stricter action against scam centers linked to crypto fraud and other online crimes.
Summary
Cambodia’s Senate has approved a draft bill aimed at cracking down on scam compounds associated with crypto and online fraud.
The proposed law introduces prison sentences, financial penalties, and stricter punishments for offenses involving organized groups or multiple victims.
The legislation now awaits royal approval as the country faces increasing international pressure over its role in regional scam networks.
The Senate unanimously passed the draft law on Friday, with all 58 members voting in favor. Once signed by the king, the bill will officially come into force.
According to reports, the law proposes prison terms ranging from two to five years, along with fines of up to $125,000 for certain violations. These penalties could be significantly increased in cases involving criminal syndicates or large numbers of victims.
Government targets scam compounds
Officials stated that the legislation is designed to close gaps in existing laws and strengthen the country’s response to tech-enabled fraud. The Senate described the move as part of a broader effort to combat crimes carried out through digital systems.
In its statement, the Senate noted that the law would help address threats to public safety, economic stability, and social order. It also aims to boost cooperation in tackling fraud and safeguard the nation’s international reputation.
Rising international pressure
The bill comes amid growing criticism from foreign governments and global organizations over scam operations in Southeast Asia. A 2025 report by the U.S. State Department suggested that Cambodian authorities had often treated such cases as labor disputes rather than pursuing criminal charges against those running the operations.
The timing also follows actions by the United Kingdom, which imposed sanctions on operators of a Cambodia-based scam center. Additionally, Cambodian authorities recently extradited a suspected crime syndicate leader to China over links to such activities.
Before reaching the Senate, the draft law was approved by the National Assembly on March 30, with all 112 members voting in support.
Continued scrutiny of scam centers
Scam compounds across the region have drawn serious concern. Reports describe these sites as highly controlled environments where workers may face coercion, threats, and abuse.
A 2024 United Nations report on a similar compound in the Philippines highlighted cases of trafficking and forced confinement, noting that some workers were subjected to violence and restricted from leaving.
These facilities often operate as self-contained complexes, providing accommodation and services within enclosed spaces, limiting outside contact. Cambodia’s proposed law brings renewed focus on how the country intends to address such operations moving forward.
