The Cambodian economy is shaken after the US and UK imposed sanctions on call center gangs. The measures have expanded to cover multiple business sectors, increasing regulatory pressure on investors.
On May 14, 2569 at 09.03:XNUMX a.m., Nikkei Asia reported that New US sanctions targeting cyber fraud networks in Cambodia are beginning to have a ripple effect on the country's legitimate economy. This creates regulatory compliance risks for businesses and increases concerns about Cambodia's international image, following similar measures taken by the United Kingdom.
The latest measures, announced in late April by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC), cover five Cambodians and a network of companies allegedly involved in online call center scams and money laundering.
Some of the sanctioned individuals are politically influential businessmen, known as "Ognha," who often serve as advisors in the government, including senators with ties to large business groups, reflecting the close ties between Cambodia's political elite and business sector.
The scope of the sanctions also reflects the fact that efforts to crack down on fast-moving and sophisticated cybercrime networks are expanding beyond direct suspects and are beginning to impact Cambodia's broader economy.
In many cases, companies linked to sanctioned individuals operate essential services, such as local banks with large numbers of customers, as well as power generation and water supply businesses. This creates a risk that these measures will impact daily business activities and further exacerbate distrust in the country's financial system.
However, the U.S. Treasury Department has made some exemptions for certain industries, such as a water distribution company in Cambodia.
The crackdown is also likely to become more coordinated among multiple countries, following earlier sanctions by the United States and the United Kingdom against Prince Group and its chairman. Taiwanese authorities have seized related assets, while Singapore has arrested suspects linked to the money laundering case.
At the same time, U.S. agencies are continuing their crackdown on online fraud networks in Southeast Asia through asset seizures, website domain shutdowns, and additional financial sanctions.
Experts believe these sanctions are not aimed at eliminating all cyber gangs immediately, but rather at making it more difficult for these networks to operate and manage their costs.
Bradley Jensen-Murg, a political economist from Paragon International University in Phnom Penh. said "Sanctions make these activities more costly and difficult to continue, rather than stopping them entirely." along with stating that Cutting liquidity and financial infrastructure will increase pressure, even if the network may diversify and re-establish its base elsewhere in the future.
For businesses, the resulting impact is a significantly increased burden of inspections and compliance.
Chris McCarthy, Director of the American Chamber of Commerce in Cambodia. said Companies are becoming increasingly concerned about the risk of inadvertently becoming involved with individuals or organizations that have been sanctioned.
"The burden of verifying trading partners is very high, especially in markets where a company's shareholder structure is not always transparent." he said, adding that Businesses need to carefully examine their relationships with trading partners, real estate, and financial institutions to avoid violating sanctions.
Despite increased risks, foreign investors continue to see long-term potential in Cambodia, driven by its young workforce and strong economic growth prospects. However, the growing list of sanctions is likely to put more pressure on investment decisions, especially in a period of tightening global regulations.
The Cambodian government, meanwhile, has stepped up its efforts to crack down on online call center gangs through raids on several suspected locations. โดย Hun Manet, Prime Minister of Cambodia It was stated earlier this year that... These activities are “destroying” the country’s legitimate economy.
Meanwhile, the Cambodian government has responded strongly to international criticism, particularly after The Wall Street Journal used the word "Scambodia" to refer to the country's online scam problem, leading to widespread outrage in Cambodian society.
Analyst I think that The impact of the sanctions may not be limited to the individuals or companies being punished, but is changing the global investor's perspective on Cambodia.
Jensen-Murg said "Cambodia risks being perceived not just as an emerging market with governance issues, but as a country where the illegal and legitimate economies are deeply intertwined—an image that is difficult to remedy and could put pressure on the country for a long time."
refer : asia.nikkei.com
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