The U.S. Department of State, U.S. Department of the Treasury and U.S. Department of Commerce have warned American investors to think twice before doing business with Cambodian casino companies.
In an advisory note, the departments said, “The increase in casinos over the past decade outpaced regulators’ capacity to monitor and police these establishments, attracting organized crime elements that invest in casinos and use them to launder money.”
In October 2019, the Paris-based Financial Action Task Force (FATF) placed Cambodia on its gray list for deficiencies. Corruption is “endemic and widespread,” the advisory stated. It also advised U.S. businesses to be aware of the threat of human trafficking and child exploitation in Cambodia’s tourism industry.
“Rampant development in Sihanoukville, the site of dozens of new casinos built in the last five years, raises concerns of child exploitation and trafficking,” it said. “The government lacks the capacity to deal with child labor and is overwhelmed by the scale of the issue, particularly in Preah Sihanouk, leading to an increase in the number of child laborers at construction sites and entertainment venues, including casinos, hotels and karaoke bars.”
A 2020 ban on online gambling in the country led to the closure of many casinos and reduced sex trafficking and forced labor in the sector, “though the problem persists and will likely grow as the Cambodian economy recovers from Covid-19,” the advisory note continued. It added that an “example of criminal elements involved in Cambodia’s casino sector is Wan Kuok Koi, also known as ‘Broken Tooth.’”
Wan served a long prison sentence in Macau after being found guilty of crimes including being a member of an organized crime syndicate in the city, money laundering and loan sharking, reported the Cambodian Daily.
