Cambodia Passes First Law Targeting Online Scam Centres and Crypto Laundering

Highlights:

• Cambodia’s parliament approved its first anti-scam law to target online fraud and related crimes.
• The law sets prison terms and fines for scam operators, recruiters, and money launderers.
• The move follows rising global pressure and fresh sanctions tied to Cambodia-based scam networks.

Cambodia’s parliament has approved the country’s first law focused on stopping online scam operations, Reuters reported on Friday. The move comes after global pressure mounted on Cambodian authorities to shut down criminal hubs that have defrauded victims worldwide out of billions of dollars.

Justice Minister Keut Rith said the law will strengthen ongoing cleanup efforts and help keep these illegal operations from returning. The legislation now moves to Cambodia’s king for final approval before taking effect.

What the Cambodian New Law Covers

The law targets cybercrime activities linked to scam centres. These include online fraud, unlawful collection of victims’ personal data, recruitment for scam networks, and the laundering of illegal proceeds, including crypto linked to deception.

Penalties under the new rules are clear and strict. A convict will be imprisoned for two to five years if he is found guilty of operating any online scam scheme.

However, if there is evidence that the scam scheme involved an organized crime syndicate or had multiple victims, then a convict could be imprisoned for a maximum of ten years, together with a $250,000 monetary fine. In addition, the regulation provides for accomplices who provide assistance in carrying out the crime.

“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,” ​he told reporters. He noted that scam centres have hurt the country’s economy, tourism sector, and foreign investment.

Cambodia’s parliament has passed its first cybercrime law targeting scam compounds, focusing on cross-border fraud and money laundering involving crypto. The law sets penalties of 2–5 years in prison and fines for standard offenses, rising to up to 10 years for cases involving… pic.twitter.com/YTxpPOd9ay

— Wu Blockchain (@WuBlockchain) April 3, 2026

For years, Cambodia has faced criticism from human rights groups and foreign governments about scam compounds in the country. Many of these centers use forced labor to trap workers. These workers then defraud people online through fake investment schemes, romance scams, and cryptocurrency fraud. International bodies have imposed sanctions and filed indictments related to these operations.

Cambodia Steps Up Scam Crackdown After UK Sanctions

The parliamentary vote happened just one day after Britain announced sanctions related to Cambodia. Britain said it had sanctioned the operators of what it called the largest fraud complex in Cambodia. It also sanctioned an online crypto marketplace that was allegedly used to sell stolen personal data.

Cambodia has also taken action in several major cases this week. On Wednesday, the government said it extradited Li Xiong to China. According to the report, he was a former executive at a Cambodian financial group and is accused of laundering money for criminal networks.

In January, Cambodian authorities arrested Chinese-Cambodian businessman Chen Zhi and sent him back to China. He faces accusations of being involved in a violent online scam and a money laundering operation.

The new law will not fix Cambodia’s issues with scam centers on its own. However, it provides authorities with a clearer legal framework to pursue those responsible for these operations. It also enables them to penalize more related crimes.