TLDR
- Criminal groups in Southeast Asia use casinos, online gambling, and crypto to hide illegal money, according to an ACAMS analysis.
- A UNODC report says China is the largest source of demand for the region’s illegal online gambling.
- Casinos and scam compounds often share trafficked workers, buildings, and IT systems.
- The EU sanctioned 7 people and 3 entities, and FinCEN issued an alert naming Cambodia’s Huione Group.
- The UNODC says crackdowns often scatter criminal groups instead of shutting them down.
Criminal groups in Southeast Asia are using casinos, online gambling sites, and cryptocurrency to hide illegal money, according to an analysis by the ACAMS moneylaundering.com legal team. The groups are also linked to fraud and human trafficking.
The analysis draws on reports from several international bodies. These include the Financial Action Task Force (FATF), the U.N. Office on Drugs and Crime (UNODC), and the Asia/Pacific Group on Money Laundering.
The UNODC says China is the largest source of demand for the region’s illegal online gambling. Digital payments and cryptocurrency have given criminals more ways to move money across borders.
How Gambling Helps Hide Illegal Money
A 256-page UNODC report released on July 26 said criminal organizations had taken over gaming facilities, workers, and payment systems. They used them to carry out large-scale fraud and trafficking.
Methods such as turning cash into chips and placing hidden multiplier bets can make illegal money look legitimate. This can happen at licensed casinos or on online platforms with real or fake licenses.
The UNODC also said criminal groups bribe politicians and government officials. This helps them get licenses and move across borders more easily.
Casinos and scam compounds sometimes share the same trafficked workers, buildings, and digital systems. Many sit in border areas involving Thailand, Myanmar, Cambodia, Laos, and China, while some operate from the Philippines.
The Asia/Pacific Group on Money Laundering reported on July 7 that some casinos and hotels became cyber-scam hubs during the pandemic. Travel limits had cut gaming tourism at the time.
Reported locations include the Golden Triangle Special Economic Zone in Laos, home to the Kings Romans casino complex. Shwe Kokko in Myanmar was also named.
Sanctions, Alerts, and Crackdowns
On July 30, the European Union sanctioned 7 people and 3 entities linked to crypto investment fraud and trafficking at suspected compounds in Myanmar and Cambodia. Some of these compounds were run by Prince Holding Group.
Those named included Zhu Zhongbaio, chair of Jin Bei Group. The group runs casinos and related businesses in Sihanoukville, Cambodia, including the Jin Bei 4 compound.
A September 3 alert from FinCEN, the U.S. Treasury’s financial crimes unit, said scam operators often work with money launderers and underground banks. They find these partners through guarantee marketplaces, and the alert named Cambodia’s Huione Group as an example.
The problem also reaches beyond Asia. In April 2024, the Isle of Man investigated a multimillion-dollar investment scam run from a hotel and former bank offices linked to the now-closed King Gaming.
On February 24 this year, the Isle of Man raised its gaming-sector risk rating to medium-high. It urged local businesses to rethink their ties with e-gaming firms connected to East and Southeast Asia.
Cambodia banned online gambling in 2019, and the Philippines banned offshore gaming in 2024. Lawmakers in the Philippine Senate are still calling for more restrictions.
Indonesian police arrested 321 foreign nationals on May 10 in a crackdown on illegal online betting. However, the UNODC said its findings on Myanmar’s KK Park and Shwe Kokko show raids often scatter criminal groups rather than end them.
The latest findings came from the FATF on September 9. Its report examined illegal and unlicensed offshore gaming platforms, which in many regions now rival or exceed their regulated competitors.
