Cambodia Passes Landmark Cybercrime Law Amid Global Crackdown on Scam Networks

Cambodia’s parliament has approved a new law specifically targeting cybercrime and scam centres, a legislative move aimed at curbing an industry that has allegedly defrauded international victims of billions of dollars. The new statute, passed on Friday, establishes stringent penalties for online fraud and creates a legal framework to address compounds where workers are often forced to participate in illicit schemes. Justice Minister Keut Rith framed the legislation as a necessary step in a broader “cleaning operation,” stating the law is “strict like a fishing net” and designed to ensure the centres do not return following the government's crackdown, according to local reports.

Background and Context

The passage of this law marks a significant shift for Cambodia, which has faced intense international scrutiny for hosting vast scam compounds. Historically, the country lacked specific legislation dedicated to cyber scams, relying instead on charges related to human trafficking, aggravated fraud, and money laundering. These illicit operations, often disguised as legitimate businesses, have become a regional hub for organised crime. The government has long played down the scale of the issue, but the economic toll has become difficult to ignore, with Rith acknowledging that the illegal operations have negatively impacted tourism and investment.

Key Figures and Entities

The new law is being implemented alongside high-profile arrests and extraditions. In January, Chinese-Cambodian tycoon Chen Zhi was arrested in Cambodia and subsequently extradited to China, accused of running a brutal online scam and money laundering operation. More recently, on Wednesday, Cambodian authorities confirmed the extradition of Li Xiong, a former leader at a Cambodian financial conglomerate accused of laundering money for criminal organisations. These actions signal a willingness to target senior figures, though critics argue previous crackdowns have failed to stem the tide of these operations.

Legal and Financial Mechanisms

Under the newly approved legislation, individuals convicted of online scams face prison sentences ranging from two to five years and fines of up to $125,000. The penalties escalate significantly for crimes committed by gangs or those affecting large numbers of victims, with potential sentences of up to 10 years and fines reaching $250,000. The law also specifically criminalises associated activities, including money laundering, the harvesting of victims' data, and the recruitment of personnel for scam operations. By codifying these offences, the government aims to close legal loopholes that previously allowed perpetrators to evade severe punishment.

International Implications and Policy Response

The Cambodian government’s legislative push follows mounting pressure from the international community. On Thursday, the British government sanctioned the operators of what it described as the largest fraud complex in Cambodia, as well as an online cryptocurrency marketplace used to trade stolen personal data. These sanctions are part of a broader effort to combat a fast-growing network of scam centres in Southeast Asia, where victims are frequently held in guarded compounds and coerced into committing fraud. While Cambodia maintains that the new law serves the interests of the nation, the international response highlights the cross-border nature of the threat and the necessity for global cooperation to dismantle these financial networks.

Sources

This report draws on Bangkok Post coverage published in April 2026 regarding the passage of Cambodia's cybercrime law and related sanctions.