Cambodia’s parliament has passed legislation aimed at cracking down on criminal compounds used to carry out large-scale fraud operations, including schemes involving cryptocurrency. The Senate of the Kingdom of Cambodia announced on Friday that 58 senators voted unanimously in favor of the draft law, with no amendments proposed. The bill must still receive approval from the king before it can take effect.
Under the proposed law, individuals convicted of certain crimes connected to these operations face between two and five years in prison and fines of up to $125,000. Those found to be acting as part of a gang or targeting multiple victims could face double the prison time and financial penalties. The Senate described the legislation as filling gaps in existing law that have left authorities without adequate tools to address fraud conducted through technological systems.
In a translated statement accompanying the Friday notice, the Senate said the bill aims to address challenges that pose serious risks to social security, the economy, and citizens, while also protecting Cambodia‘s international reputation. Officials framed the law as a step toward strengthening cooperation in combating fraud and improving public order. The national assembly had already advanced the bill on March 30, with all 112 members voting in favor.
The legislation comes amid longstanding international criticism of Cambodia’s handling of scam compound operations. A 2025 report from the US State Department found that the Cambodian government had frequently characterized scam operations as labor disputes rather than criminal matters, and had not arrested or prosecuted any owner or operator of a suspected compound. Cambodia’s operations are part of a broader network of such facilities spread across parts of Southeast Asia.
The bill’s passage followed a series of related developments, including UK authorities sanctioning the operators of a Cambodia-based scam center and Cambodia extraditing to China the leader of a criminal syndicate with alleged ties to scam compounds. These actions signal growing international pressure on governments in the region to take firmer action against the operations.
A 2024 report by UN News that examined a compound in the Philippines shed light on the scale and nature of these facilities. The report described them as self-contained environments designed so that residents would have little reason or ability to leave, featuring restaurants, dormitories, barbershops, and entertainment venues. Workers could remain inside for months at a time without ever stepping outside the compound’s boundaries.
Despite the presence of workers carrying out fraudulent activities, many individuals inside these compounds were described as victims themselves. According to the UN News report, numerous workers had been trafficked, held against their will, and subjected to violence. The Cambodian legislation is intended to address both the criminal enterprises running these operations and the broader human rights concerns they raise.
Originally reported by CoinTelegraph.
