Cambodia has revoked the banking license of Huione Pay, linked to a vast cyberscam industry. This move has drawn skepticism from observers, who doubt the government’s commitment to dismantling organized scams. The issue poses significant economic and international implications, particularly concerning relations with China and the targeting of foreign individuals. Critics highlight the need for meaningful reforms rather than superficial gestures.

In a recent development, Cambodia’s central bank revoked the banking license of Huione Pay, a subsidiary of Huione Group, which has been accused of operating the world’s largest illicit online marketplace. This marketplace has allegedly processed up to €22 billion in illegal transactions since 2021. The license revocation was attributed to noncompliance with regulations as stated by a spokesperson from the National Bank of Cambodia.

The Huione Group is implicated as a central player in Cambodia’s extensive cyberscam industry, which is estimated to generate approximately €11 billion annually, accounting for a significant portion of the country’s economic output. Heightened scrutiny is coming from both China and Western nations urging action against this trade. Notably, one of Huione Pay’s directors is Hun To, a cousin of Prime Minister Hun Manet, who has faced longstanding accusations of illegality.

Contrary to allegations, the Huione Group claims that Huione Pay voluntarily relinquished its banking license and is pursuing new licenses in Japan and Canada. Observers have suggested that this revocation may merely be a facade to demonstrate compliance with international expectations while maintaining the status quo.

The cyber scam problem in Southeast Asia, particularly in Cambodia, has worsened, spurred by the COVID-19 pandemic as illegal gambling operations transitioned to online fraud. The harsh reality reflects a potential 150,000 individuals coerced into scam operations, indicating an alarming displacement of the formal economy. This has resulted in Cambodia being ranked 22nd in global corruption by Transparency International.

The international implications are significant, with most victims being Chinese nationals, raising concerns within China, especially as its economy struggles. Beijing has initiated a crackdown in cooperation with neighboring Southeast Asian countries but expresses frustration over Cambodia’s sluggish response to curbing scams. As the scams increasingly target Westerners, the US estimates significant financial losses tied to Cambodia-based operations.

For years, the Cambodian government has downplayed the severity of the issue, focusing more on suppressing dissent and independent reporting. High-profile journalists have faced legal repercussions for exposing these scams, inferring governmental intent to obscure the problem. Critics argue that the recent actions against Huione Group lack substance and do not address the systemic issues, highlighting the need for genuine accountability and reform to combat this expanding threat.

In summary, Cambodia’s efforts to address organized cyberscams through the recent banking license revocation of Huione Pay have been met with skepticism. Despite international pressures and associated corruption concerns, the government’s commitment to significantly combatting this illicit industry remains questioned. As the cybersecurity crisis impacts both local and international victims, genuine reforms are necessary for Cambodia to restore credibility and protect its economy from deeper entrenchment in corruption and illegal activities.

Original Source: www.dw.com

Related posts:

Cambodia’s Commitment to Ending Organized Cyber Scams Under Scrutiny The Transition in U.S. Foreign Policy Towards Cambodia Post-USAID Cambodia’s Funan Techo Canal Faces Uncertainty Amid Dwindling Chinese Support Potential Benefits of US Tariffs on China for Indian Exporters