Cambodia Passes First Specialized Anti-Scam Law Amid Global Regulatory Scrutiny
Cambodia’s National Assembly, the 112-member lower house of the country’s parliament, unanimously passed new legislation on Friday targeting the multi-billion dollar illicit online scam industry operating within its borders. The “Law on Combating Online Scams” represents the jurisdiction’s first formal legal framework explicitly designed to prosecute technological fraud centers.
The bill outlines tiered criminal penalties for individuals and syndicates managing cybercrime compounds. Administrators managing internet fraud centers face baseline fines of up to 1 billion riels (approximately $250,000) and prison sentences ranging from five to ten years. Lower-level participants convicted of executing scams face two to five years in prison and fines up to $125,000.
Lawmakers included escalating punitive measures for operations involving organized human rights abuses. If cyber fraud activities are linked to assault, illegal imprisonment, human trafficking, or forced labor, maximum penalties double to twenty years in prison and 2 billion riels in fines. Cases resulting in the death of a victim carry potential life imprisonment under the new framework.
Enforcement and Economic Impact
Justice Minister Keut Rith addressed reporters following the parliamentary vote, stating the legislation aims to formalize a nationwide enforcement operation. “This law is strict like the fishing net, strict to ensure we don’t have the online scams anymore in Cambodia,” Rith said. He added that the illicit operations have directly impacted the national economy, tourism, and foreign investment.
The legislation also broadens the prosecutorial scope by criminalizing peripheral operational activities. Gathering victim data, recruiting individuals for scam centers, and processing associated illicit funds are explicitly targeted. The bill now awaits final signature from Cambodia’s king before formal enactment.
The regulatory development follows a public directive from Prime Minister Hun Manet’s government to eradicate domestic scam compounds by the end of April. According to state officials, authorities have closed approximately 80 percent of identified illicit operations since a localized enforcement campaign began in mid-2025.
International Compliance Pressures
This legislative action coincides with coordinated international scrutiny over Southeast Asian cybercrime networks and their reliance on crypto-asset laundering. Earlier this year, U.S. and U.K. regulators issued sanctions against operators of alleged fraud complexes in Cambodia, citing widespread forced labor and massive capital flight.
The jurisdictional pressure has already resulted in cross-border legal action. In January, Cambodian authorities arrested and extradited Chinese-Cambodian businessman Chen Zhi to mainland China. Chen faced a U.S. indictment alleging he masterminded a multinational cyber fraud network and used related businesses, including cryptocurrency mining operations, to launder illicit profits.
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