Transnational Crime in Southeast Asia – The News Lens International Edition

A recent INTERPOL operation targeted drug trafficking in Southeast Asia and resulted in record seizures of synthetic drugs worth $1.05 billion. The operation ran from July 22 to August 7 and included Australia, Cambodia, Korea, Myanmar, Thailand, the US and Vietnam. It led to the seizure of 139 million Yaba pills, 1.5 tons of ketamine and 13.5 tons of sodium cyanide, a precursor to methamphetamine. These seizures revealed evolving trafficking routes, underscoring the global reach of transnational crime networks from Southeast Asia, impacting regions as far as Europe and Australia.

The rise of transnational crime in Southeast Asia threatens regional security and stability, driven by weak governance, corruption and advanced technology. Criminal networks in Myanmar, Cambodia and Laos exploit these vulnerabilities, often with the cooperation of local elites and armed forces. Corrupt police and military officials enable the trafficking of drugs, money, weapons and people across borders, sustaining these illegal networks that engage in a wide range of crimes, including cyber scams, wildlife trafficking and money laundering.

A study by the United States Institute of Peace (USIP) highlights the growing influence of criminal networks from China in Southeast Asia, involved in online scams, human trafficking and cross-border crime. These networks pose a global security threat and have a direct impact on U.S. national security as drugs and online scams associated with these groups reach U.S. shores. These networks are embedded in both legal and illegal enterprises and infiltrate local elites and regional governments. They operate within a broad ecosystem, including casinos, special economic zones (SEZs), and other seemingly legitimate businesses, making them difficult to dismantle. The networks’ criminal activities generate an estimated $43.8 billion annually, with profits benefiting Myanmar’s military, border guards (BGFs), ethnic armed organizations (EAOs), and ruling elites in Cambodia and Laos.

One such enclave, the Kings Romans Casino in Laos, is run by Chinese crime boss Zhao Wei. He has been on the US Treasury sanctions list since 2018 for involvement in drug trafficking, human trafficking and money laundering. Despite these sanctions, the casino and surrounding Special Economic Zone (SEZ) continue to expand, attracting tourists and migrant workers with new developments such as casinos, hotels and an international airport. The casino is notorious for openly facilitating various forms of cross-border crime, including coercive crime. In this form of exploitation, victims of human trafficking are forced into illegal activities such as cybercrime and cryptocurrency scams, often lured by fake job offers in cities such as Dubai and Bangkok.

Victims, recruited from multiple countries, are used to defraud people in their home countries by speaking their language and gaining trust. Countries like India, which has suffered significant financial losses due to these scams, are now working with ASEAN to combat this growing threat. China’s infrastructure projects, such as the Belt and Road Initiative, have also indirectly enabled the proliferation of scam centers in SEZs in Laos, Cambodia and Myanmar. The COVID-19 pandemic worsened the situation as organized crime repurposed empty casinos, especially in Sihanoukville in Cambodia and Yatai Shwe Kokko SEZ in Myanmar, for scams and human trafficking. Weak immigration controls and rising digital fraud in ASEAN – home to 460 million internet users – make tackling online scams and human trafficking an urgent regional priority.

In Laos, local and international law enforcement agencies have struggled to regulate the Golden Triangle SEZ due to weak governance and the presence of a private police force controlling the area. While the SEZ has boosted Bokeo Province’s economic growth, it has also deepened social inequality and facilitated criminal activities. Despite these problems, the SEZ continues to expand, with plans for a new port facility and further real estate development, which could provide even more opportunities for criminal networks to flourish.

Various criminal activities in Southeast Asia often converge, creating a synergy that increases their impact. For example, human trafficking fuels cyber fraud, while drug and arms trafficking are often intertwined. A recent case in North Moluccas, Indonesia, revealed a rare intersection of arms and wildlife trafficking. Suspects smuggled endangered birds to the Philippines and used the profits to buy firearms such as M16s, which were later seized by Indonesian authorities. This case highlights how criminal networks overlap, empowering illegal actors and exacerbating problems such as armed violence and biodiversity loss. While arms and drug trafficking often intersect in Southeast Asia, the exchange of wildlife for weapons is an unusual but growing trend.

The convergence of these criminal economies poses a significant threat in regions with a weak state presence and porous borders, especially in the Philippines and Indonesia. Organized crime groups take advantage of these vulnerabilities, often facilitated by embedded brokers and clan networks.

To combat these transnational crime networks, the United Nations Office on Drugs and Crime (UNODC) has launched an Emergency Response Network (ERN), connecting law enforcement officials from countries such as Cambodia, Malaysia and Vietnam to improve coordination and intelligence sharing . With the support of INTERPOL, the ERN aims to dismantle fraud centers and rescue victims of human trafficking. The network, funded by Japan, underlines a regional commitment to tackling transnational crime through enhanced cooperation and specialized training.

The Association of Southeast Asian Nations (ASEAN) is intensifying efforts to combat transnational crimes through bodies such as the ASEAN Ministerial Meeting on Transnational Crime (AMMTC) and the ASEAN Senior Officials Meeting on Transnational Crime (SOMTC). These initiatives focus on issues such as human trafficking and scam centers, especially in regions such as Cambodia and the Golden Triangle. ASEAN is also considering the establishment of an ASEAN Center on Transnational Crime (ACOT) to enhance intelligence sharing, joint investigations and regional coordination, with the aim of curbing activities such as arms and wildlife trafficking, as well as human trafficking.

The task of curbing international criminal activity in Southeast Asia appears bleak. Governments are outpaced in terms of resources and manpower, while many individuals, either through direct employment or bribery, depend on these crime networks for their livelihoods. Transnational crime groups have adapted and expanded after facing law enforcement crackdowns earlier this year. In Myanmar, political instability and military cooperation are creating fertile ground for these groups to revive their operations. China’s reduced pressure on Myanmar’s military regime has further strengthened these networks, allowing them to escalate their activities. Key figures such as Karen State warlord Saw Chit Thu, who now leads the renamed Karen National Army (KNA), have deepened their involvement in human trafficking, forced labor and other criminal operations in collaboration with Chinese mafia groups. Despite international efforts to curb these activities, Chit Thu’s network has flourished, evading law enforcement and exploiting weak governance to expand its influence and criminal activities across the region.

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TNL editor: Kim Chan (@thenewslensintl)

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