Bangkok (Thailand), 26 September 2023 – Online casinos, cyberscams and related underground banking operations run by transnational organized crime groups have proliferated across Southeast Asia and become a significant and growing problem, particularly in the Mekong region and the Philippines where many have been established. Thousands have also been trafficked into the lucrative industries for work, and many more have lost vast amounts of money being funneled into the hands of criminal groups who have made the region their base of operations.
“Criminal networks in Southeast Asia, and particularly the Mekong, have been extremely effective in using technology to expand their revenue streams and create an underground banking infrastructure capable of moving massive volumes of money and various cryptocurrencies undetected”, stated UNODC Deputy Regional Representative, Benedikt Hofmann, during his opening remarks to participating agencies. “This presents significant challenges for investigators and criminal justice systems in the region. Our meeting aims to enhance awareness and coordination, and to create a basis for developing effective solutions.”
In an effort to address transnational organized crime and underground banking associated with casinos and cyberscams, the UNODC Regional Office for Southeast Asia and the Pacific held a coordination meeting with authorities from several Southeast Asian countries. The two-day closed-door meeting brings together various UNODC experts and officials from twelve government agencies including law enforcement, financial intelligence, and regulators from Lao PDR, Malaysia, the Philippines and Thailand to take stock of the evolving situation and recent trends and developments while also serving as a venue for sharing information, strengthening inter-agency networks, and discussing regional challenges and solutions. It also builds on the region’s latest strategic plan to address transnational organized crime and trafficking in persons associated with casinos and scam operations in Southeast Asia.
“Recent cases have demonstrated clear connections between online casinos, organized criminal networks, and crimes including scams and human trafficking”, commented Pol. Brig. Gen. Sidney Hernia, Director of the Philippine National Police Anti-Cybercrime Group (ACG). “The transnational nature of these syndicates and their operations has made it vital for us all to work together on this issue, especially in sharing information and coordinating more effectively between agencies and across jurisdictions. At the same time, effective solutions will also require cooperation with the private sector, and particularly social media platforms, to support and strengthen investigations. We hope UNODC can help to bridge that gap.”
The rapid growth of illegal and underregulated online gambling platforms has been reported as a major concern by several governments in East and Southeast Asia in recent years. This development has been marked by a parallel surge in criminality in various parts of the region, including incidents of kidnapping and extortion, human trafficking, diversified cyberscams, and the growing influence of organized crime. Recent raids and arrests also point to the misuse of online casinos and junkets in large-scale underground banking and money laundering operations.
“While casinos and related high cash volume businesses have long served as vehicles for regional underground banking and money laundering, the proliferation of both illegal and underregulated online gambling platforms in the region has changed the game, allowing for faster anonymized transactions, commingling of funds, and diversified criminal operations”, remarked John Wojcik, Associate Programme Officer for Transnational Organized Crime. “The development of scalable online solutions has supercharged the evolving illicit economy in the region, in turn attracting new networks, innovators, and service providers, and fueling the growing integration of cryptocurrencies, automation, deepfakes and other malicious technology. Failure to address the situation will have consequences for Southeast Asia and other regions as organized crime reinvest to further innovate, professionalize, and consolidate their operations.”
Over the course of the meeting participants agreed to form an informal network to expand cooperation and share information to disrupt transnational organized criminal networks, trafficking in persons, illicit financial flows, and associated operations. Follow-up meetings and activities are also expected to be scheduled in coming months alongside the development of an outcome report and policy brief informed by the regional meeting.
Click here to read UNODC’s Policy Report on casinos, cyber fraud, and trafficking in persons for forced criminality in Southeast Asia.
Click here to learn more about UNODC's Regional Programme.
Click here to learn more about UNODC's Regional Programme and work on cybercrime
Click here to learn more about UNODC’s work to address human trafficking in the region.
