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National
Hun Manet vows to eradicate ‘black economy’ as Cambodia cracks down on online scam networks
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Cambodia has deported more than 30,000 foreigners linked to cybercrime syndicates. Khmer Times#### Click here to get Khmer Times Breaking News direct into your Telegram
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Synopsis: Prime Minister admits cyber fraud has hurt the country’s reputation and economy as authorities escalate nationwide raids, deportations, and legal measures to eliminate online fraud by April.
Prime Minister Hun Manet has acknowledged that online scam centres operating in Cambodia are damaging the country’s reputation and undermining its economy, while firmly rejecting allegations of government involvement.
In a rare interview with Agence France-Presse during a visit to Brussels, Mr Hun Manet described the sprawling cyberscam networks as part of a “black economy” that is harming tourism and foreign investment.
“The scam network, what we call the black economy, is destroying our honest economy. It has put a bad reputation on Cambodia,” he said. “This is the reason why we need to clean this out.”
Cambodia has in recent years emerged as a regional hotspot for organised cybercrime syndicates running multibillion-dollar fraud schemes. These operations typically con victims worldwide with fake romantic relationships and fraudulent cryptocurrency investments.
Foreigners make up a large proportion of the workers on scam compounds in Cambodia. GDI
A 2024 report by the United States Institute of Peace estimated that cyberscam operations in Cambodia generate more than $12.5 billion annually—roughly half of the country’s gross domestic product.
Mr Hun Manet, who chairs the Commission for Combatting Online Scams, conceded that scam operations have indirectly stimulated certain sectors of the economy, particularly real estate and construction.
“Yes, the scam centre may produce some direct result to real estate, to some investment, the building, the buying, and how to make the centres,” he said. “But most of the proceeds do not go into the government of Cambodia.”
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However, he rejected claims that Cambodia’s economy depends on illicit activity.
“A lot of people were saying that the GDP of Cambodia relies on the scam. No. We rely on pure economies such as tourism, manufacturing, and others,” he said.
In the past 12 months, Cambodia has rolled out a nationwide campaign to crack down on online scam syndicates, most led and run by foreigners. Government officials say recent crackdowns have led to thousands of arrests and the dismantling of multiple scam compounds. Meanwhile, thousands of suspected scam workers have been repatriated from Cambodia over the past year.
In January, Cambodian authorities arrested and extradited Chinese-born Chen Zhi, founder of Prince Holding Group and former adviser to the Cambodian government. Chen was indicted by US authorities in October on allegations that his conglomerate functioned as a front for a cyber-fraud empire.
Chen Zhi is extradited to China after being stripped of his Cambodian citizenship in January. CCTV
“We did not know that he was the kingpin,” Mr Hun Manet said, adding that background checks had not revealed wrongdoing at the time of his appointment as adviser.
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US prosecutors allege that Chen directed forced labour operations in prison-like compounds across Cambodia, where trafficked workers were confined behind high walls and barbed wire. Prince Group has denied the allegations.
Mr Hun Manet said Chen was extradited to China rather than the United States because of his nationality. He added Chen was stripped of his Cambodian citizenship after it was discovered that he had obtained it using fraudulent documentation.
While acknowledging the complexity of dismantling entrenched criminal networks, he maintained that his government remains committed to eliminating scam operations and restoring confidence in Cambodia’s formal economy.
“This is not the economy we want,” he said.
Cambodian economist Duch Darin said cracking down on online fraud is a crucial step towards strengthening the rule of law and boosting investor confidence.
“For instance, in January 2026, Cambodia approved 43 new investment projects with a total capital of approximately $752 million, reflecting investors’ trust in the stability and potential of the Cambodian economy,” he said.
Simultaneously, clothing, footwear, and travel products exports rose by 12.8% to $1.49 billion.
“This data highlights the resilience and competitiveness of Cambodia’s core manufacturing sectors, even amidst continued global economic uncertainty,” Darin added.
Meeting the deadline
According to the Ministry of Interior, Cambodia has deported more than 30,000 foreigners linked to cybercrime syndicates, as the country intensifies its efforts to eradicate all forms of online scams by April.
Speaking at a National Anti-Human Trafficking Day event in Phnom Penh on Wednesday, Interior Minister Sar Sokha said that about 210,000 foreigners have voluntarily departed the country following a string of high-profile raids on scam compounds.
“Through our prevention and suppression campaigns against online scams, we have seen over 210,000 people leave Cambodia voluntarily, while more than 30,000 others have been deported to their home countries,” he said.
He said the government is committed to a zero-tolerance policy regarding the masterminds behind the technological crimes. He framed the crackdown as a vital contribution to regional and global security.
“Our strict legal measures aim to eliminate technology-based crimes and ensure the safety of citizens both locally and globally,” he said. “We are focused on rescuing victims who were deceived into these operations, ensuring they regain their freedom and return home safely.”
Meanwhile, owners of residential and hotel properties are reminded to register their foreign tenants or guests with the authorities.
“Authorities will begin imposing fines starting from March 2026,” he said.
A sub-decree signed by Prime Minister Hun Manet in January states that failure to obey the rule will result in a fine of 400,000 riel, excluding other liabilities resulting from such negligence.
The same sub-decree states that accommodation owners or managers who intentionally conceal or allow foreigners who have illegally entered Cambodia to stay on their premises will face a fine of 4,000,000 riel per foreign national, in addition to any criminal penalties they might incur.
In a related development, Phnom Penh Governor Khuong Sreng has pledged to completely eliminate online scam operations from all areas of the capital by mid-March 2026.
Speaking at a Wednesday meeting, Sreng stated that, in line with the directive of Prime Minister Hun Manet, authorities and competent forces must combat and eradicate online scam crimes, as Cambodia accepts only a “white” economy—not a grey or black one.
“According to the plan of Deputy Prime Minister and Minister of Interior Sar Sokha, all authorities and competent forces are instructed to fight and eliminate online scam crimes completely by mid-March 2026,” he said.
“I request the police and the Royal Gendarmerie to intensify investigations and intelligence gathering in a comprehensive manner to achieve the full eradication of online scam crimes from Phnom Penh. By March, it must be clean.”
He stressed that once the mission to eliminate online scams in Phnom Penh is completed, any transfer, sale, or lease of properties—including condominiums and apartments—within the capital must strictly require documentation issued by local authorities to facilitate effective management.
The latest crackdown on online scams in the capital also took place on Wednesday, in a building in Ou Bek Ka’am commune’s Sen Sok district.
The operation was carried out under the orders of Lieutenant General Choun Narin, Phnom Penh Municipal Police Commissioner, with procedural coordination from Deputy Prosecutor Chhay Hong of the Phnom Penh Municipal Court Prosecutor’s Office and the Secretariat of the Committee for Combatting Online Scams.
Among the 21 suspects arrested were 16 Chinese, one Indian, two Pakistanis and two Nepalese. Authorities confiscated desktop computers, laptops, and mobile phones.
Specialised authorities are working on further investigations to take legal action against the masterminds behind the online scam operation.
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