Southeast Asian casino hubs linked to transnational fraud and human rights abuses

Unused casinos have become a hub for fraudulent activity from Southeast Asian gangs, according to an alarming joint report from the UK and US governments.

These locations across Southeast Asia are being used on an “industrial scale” to manipulate victims out of “substantial sums of money”.

There is also evidence that the scams are being conducted by foreign nationals who are trafficked and then forced to carry out online fraud under the threat of torture.

The report emphasised that due to the treatment of the victims, the criminal activity transcends beyond economic fraud and enters into significant human rights breaches. 

As a result, the two governments have jointly sanctioned several individuals and entities alleged to be involved in these operations, as well as frozen assets linked to these groups – including a £12m mansion in North London.

“Fraudsters prey on the most vulnerable by stealing life savings, ruining trust, and devastating lives. We will not tolerate this,” warned Fraud Minister Lord Hanson.

Among those targeted following an investigation by the Foreign, Commonwealth & Development Office and the United States’ Office of Foreign Assets Control are The Prince Group and its Chair, Chen Zhi.

According to the report, The Prince Group, a multi-billion-pound conglomerate with business activities across Cambodia and beyond, has constructed casinos and compounds that are now being used as scam centres, and maintains links to its operations through corporate proxies.

Alongside the £12m mansion, Zhi’s assets include a £100m office building on Fenchurch Street in the City of London and 17 flats on New Oxford Street and in Nine Elms in South London.

Jin Bei Group, Golden Fortune Resorts World Ltd and Byex Exchange have also been implicated, each of which has links to the Prince Group.

Foreign Secretary Yvette Cooper stated: “The masterminds behind these horrific scam centres are ruining the lives of vulnerable people and buying up London homes to store their money.

“Together with our US allies, we are taking decisive action to combat the growing transnational threat posed by this network – upholding human rights, protecting British nationals and keeping dirty money off our streets.”

Gangs involved are reported to be using a myriad of methods in a bid to lure in foreign nationals, including romance scams and fake job advertisements. 

Furthermore, underpinning the sophistication of the operation, they are also reported to have utilised bogus crypto investments in a bid to ensure maximum exploitation of the most vulnerable groups. 

The casinos, alongside other seemingly legitimate front businesses and online gambling platforms, are also used as part of a wider financial ecosystem to launder the proceeds of the fraud.

Ongoing threat

The threat of organised crime throughout Southeast Asia has long loomed over the gaming industry.

In May, the Isle of Man warned that it has “limited appetite” for doing business with iGaming companies with links to East or Southeast Asia due to the threat of “criminal infiltration”.

Meanwhile, earlier this month, the Southeast Asian nation of Timor-Leste cancelled gaming licensing in the country, citing security concerns.

Fears were raised by a United Nations Office on Drugs and Crime (UNDOC) report, which revealed criminal activity has been on the rise in the Timorese special administrative region of Oecussi, where ten people were arrested on suspicion of illegal gambling and computer fraud.