Cambodia is emerging as a transnational crime center

Transnational crime in Southeast Asia poses an increasing threat to regional stability and global security, affecting countries as far away as North America, Europe and Oceania. Chinese-backed networks operating in Myanmar, Laos and Cambodia exploit corruption and weak governance for drug trafficking, cyber scams and human trafficking. In the Kingdom of Cambodia, abandoned special economic zones, casinos and hotels have become hubs for these activities. Cities such as Sihanoukville, Poipet and Bavet are now regional centers of organized crime, involving not only Chinese and local networks, but also groups such as the Japanese Yakuza.

After Cambodia joined China’s Belt and Road Initiative (BRI) in 2013, Chinese investment and tourism boomed. Developers began building casinos and resorts aimed at Chinese customers, capitalizing on the demand for both in-person and online gambling, which remains illegal in China. However, a 2019 Cambodian law banning online gambling reduced the profitability of these ventures, and the 2020 COVID-19 lockdowns further devastated in-person tourism and gambling. In response, these operations turned to alternative sources of income, leading to partnerships with transnational organized crime groups and human trafficking networks, fueling an increase in criminal activity.