Cambodia has not yet shaken off the online scam crisis that has drawn global attention. Evidence suggests that some government officials have colluded with criminal networks running technology-based fraud operations.

Officials Push Back, Critics Remain Unconvinced

In September, Cambodian anti-crime officials, including those tackling fraud, human trafficking and drug smuggling, presented evidence at an international conference in Phnom Penh. They argued that they had broken up large criminal operations across the country. Those operations, officials said, had relied on protection from influential people and wealthy figures linked to the ruling Cambodian People's Party.

Separately, Thai military strikes on buildings suspected of housing fraud operations pushed Cambodian authorities to act. Under government orders to clear these sites completely, police arrested gang leaders, their deputies and their top lieutenants, detained suspects, and repatriated tens of thousands of victims to their home countries. Many Cambodians hope that these steps, supported by information from partner countries about scam activity since 2022, will gradually restore the kingdom's reputation in 2026.

Allegations Against the Long Bay Compound

Qatar-based Al Jazeera reported on October 10 that a scam compound was operating inside Long Bay, a resort on the coast of Koh Kong province. The site is part of the Tara Sagor development project. According to the report, it is owned by Deng Pibing, a Chinese-born businessman who holds Cambodian citizenship and is also known as Big Brother.

Investigators reportedly found online fraud, forced criminal labor, human trafficking and drug use at the site. They said the operation was shielded by officials who did business with Deng Pibing. Reporters noted that these allegations are hard to dismiss, since reports about the compound's activities have circulated since February 2026.

That same year, the US State Department's annual trafficking report downgraded Cambodia to Tier 3, the lowest ranking.

Money Laundering Concerns and Financial Pressure

According to Asian Gaming Brief and other outlets, the Financial Action Task Force (FATF), based in Paris, placed Cambodia on its grey list for money laundering in 2011. Cambodia was removed in 2015 after cleaning up its record, but it was added back in 2019. FATF announced in February 2023 that it would take Cambodia off the list.

National Bank of Cambodia Governor Chea Serey warned at a meeting with money transfer banks that if the country did not move quickly to make improvements, it would almost certainly be placed on the grey list for a third time.

Cambodia's trading partners in industrialized European countries also expect it to uphold strict anti-money laundering and counter-terrorism financing policies. They require banks to report immediately any currency flows above $10,000, and they ban opening accounts in another person's name to conceal the true owner. Banks must also keep records of an individual's account transactions for up to five years after the account is closed.

The Fugitive Businessman

Despite these concerns, authorities insist that Deng Pibing left Cambodia in May and that his whereabouts are now unknown. Cambodia's relevant ministry has asked Interpol to issue a red notice for him as a fugitive from justice.

Meanwhile, US law enforcement is looking for She Zhijiang, a figure in the Rithz Long Bay company network who has close ties to young tycoon Chen Zhi, a potential partner of Deng Pibing.