Cambodia has taken a decisive step in its crackdown on large-scale, crypto-linked fraud operations by passing a new law that imposes severe penalties, including life imprisonment, for the operators of such schemes. The country's National Assembly advanced the bill on March 30, with unanimous approval from all 112 members. The Senate followed suit on April 3, unanimously passing the draft law with no amendments, with 58 senators voting in favor.
The legislation now awaits final approval from King Norodom Sihamoni before it becomes law. Once enacted, it will establish criminal rules to address gaps in current legislation, specifically targeting cross-border cybercrime groups. These groups run extensive fraud operations, including fake cryptocurrency investment platforms, impersonation scams, and 'pig-butchering' schemes that target victims globally.
The penalties are severe and scale based on the crime's severity and the perpetrator's role. Prison terms range from two to five years and fines up to $125,000 for certain offenses. However, the law mandates harsher punishments for ringleaders of large-scale operations, with sentences escalating up to life imprisonment. Penalties are doubled for crimes committed as part of a gang or those targeting multiple victims.
The government's notice stated the law aims to "contribute significantly to addressing challenges that pose serious risks to social security, the economy and citizens, including affecting Cambodia's reputation." This legislative action follows intense global pressure over scam compounds operating within Cambodia. A 2025 U.S. State Department report criticized the government for frequently downplaying scam operations as labor disputes and failing to arrest or prosecute any owners or operators.
Estimates suggest Cambodia's scam industry generates over $12.5 billion annually. The recent legal push coincides with international actions, including UK authorities sanctioning operators of a Cambodia-based scam center and Cambodia extraditing to China the alleged leader of a criminal syndicate tied to these compounds. Reports describe these compounds as massive, self-contained facilities where trafficked workers, held against their will, are forced to carry out the scams.
