Cambodia’s parliament has approved a draft law targeting compounds used to carry out fraud, including schemes tied to cryptocurrency, and proposes steep criminal penalties for those involved.
The Senate on Friday said it unanimously passed the bill, 58-0, without amendments. The measure still requires the king’s assent before becoming law. Under the draft, certain offenses would carry prison terms of two to five years and fines up to $125,000; both prison sentences and fines would be doubled when crimes are committed by gangs or affect multiple victims.
A translated Senate statement said the legislation aims to fill gaps in existing laws, strengthen responses to threats to social security and the economy, protect citizens and Cambodia’s reputation, and improve cooperation and effectiveness in combating fraud conducted through technological systems.
A 2025 U.S. State Department report criticized Cambodian authorities for often treating scam-operation cases as labor disputes and for not arresting or prosecuting owners or operators of suspected scam compounds. The bill’s passage follows a March 30 unanimous advance in the National Assembly, where all 112 members voted in favor.
International actions have also increased: UK authorities sanctioned operators of a Cambodia-based scam center, and Cambodian officials extradited to China an alleged syndicate leader linked to such compounds.
United Nations reporting in 2024 described scam compounds as large, self-contained facilities where residents rarely leave. Workers who staff the operations are often trafficked into the compounds, held against their will, subjected to violence and forced to live in on-site dormitories with restaurants and entertainment, allowing them to be confined for months with little outside contact.
The draft law reflects Cambodian authorities’ stated intent to more aggressively dismantle these operations and hold organizers accountable. The reporting outlet notes it follows an editorial policy and encourages readers to verify information independently.