Cambodia signals tougher action on illegal gambling and scam compounds as AML scrutiny grows

Phnom Penh is tightening oversight of high-risk sectors — including casinos — after a new wave of cybercrime enforcement and fresh warnings that reputational damage could put Cambodia’s global AML standing at risk.

Cambodia is stepping up enforcement against scam compounds and illegal online gambling activity that authorities and investigators say often overlaps with casino-linked infrastructure, as the country works to protect cross-border banking ties and investor confidence.

The latest push comes amid high-profile law enforcement cooperation with foreign partners. In early January, Cambodia extradited Chinese tycoon Chen Zhi (linked to Prince Holding Group) to China following allegations that he ran a major cyberfraud network with connections to gambling and money-laundering channels. The case drew international attention as U.S. authorities have also accused Chen of conspiracy tied to large-scale “pig-butchering” scams and laundering proceeds through businesses connected to real estate and other sectors.

In parallel, international reporting in mid-January described an intensifying crackdown and growing diplomatic pressure around Cambodia’s scam-hub economy — including waves of people leaving suspected compounds and expanded cooperation with foreign governments seeking to repatriate suspects.

For the gambling sector, the enforcement focus is increasingly framed through an AML/CFT lens. Cambodia was removed from FATF “increased monitoring” (grey list) in February 2023, after reforms to address strategic deficiencies. However, industry reporting this week said National Bank Governor Chea Serey warned that Cambodia must avoid the risk of being placed back on the FATF grey list, citing the impact that ongoing telecom-fraud narratives and scam allegations can have on tourism, investment, and cross-border financial operations.

Official AML reporting also shows casinos remain a priority “high-risk” focus area. In its Semi Annual Report 2025 (covering the first semester of 2025), Cambodia’s Financial Intelligence Unit (CAFIU) reported double-digit growth in Cash Transaction Reports and Suspicious Transaction Reports year-on-year, noted that “illegal online gambling” appears among suspected predicate offences in intelligence disseminations to law enforcement, and described expanded connectivity and supervision of reporting entities including casinos.

U.S. authorities have likewise pointed to casino-built sites being repurposed into scam hubs in Cambodia, underscoring why AML controls around gambling-adjacent infrastructure are drawing attention well beyond the gaming regulator. Investigative reporting in recent days has also highlighted alleged links between Cambodia-based real estate networks and apparent illegal online gambling operations, adding to the compliance and reputational stakes for the wider ecosystem around licensed gaming.

Taken together, the developments suggest Cambodia’s next phase won’t be limited to arrests — it will likely mean tighter, more intrusive compliance expectations for casinos, junket-adjacent activity, and any businesses exposed to large cash flows or cross-border payment rails, as the country tries to prevent scam-linked money from contaminating the regulated economy.