Cambodia Enacts Law to Curb Scam Centers Amid International Scrutiny

Cambodia is intensifying efforts to address the proliferation of online scam centers, which have drawn increasing international scrutiny. On March 30, the parliament unanimously adopted the country’s first law specifically targeting online scam operations. The legislation was subsequently approved by the Senate on April 3 and formally enacted through a royal decree signed by Acting Head of State Hun Sen on April 6. The law imposes penalties of five to 10 years in prison and fines up to $250,000 for operating scam platforms, with harsher sentences of up to life imprisonment in cases involving trafficking, violence, or deaths. Authorities report that since mid-2024, they targeted approximately 250 suspected sites, shut down 200, launched dozens of cases, and repatriated nearly 10,000 foreign nationals. 

This intensified crackdown reflects mounting pressure on Phnom Penh to address Cambodia’s emergence as a global hub for cyber-enabled fraud, including investment and romance scams often linked to forced labor conditions. During a visit to Cambodia in February, senior officials from the Federal Bureau of Investigation (FBI) commended the government’s stepped-up enforcement efforts, signaling growing international recognition of its campaign against transnational cybercrime networks. However, despite the introduction of new legislation and enforcement actions, analysts remain cautious about long-term effectiveness, noting that entrenched financial interests and protection networks may allow such operations to persist or reconstitute over time. For U.S. businesses, the crackdown signals improving regulatory intent, though persistent structural risks continue to warrant caution.