The recent revocation of the banking license of Huione Pay, the banking arm of the Cambodia-based conglomerate Huione Group, has raised significant concerns about the group’s involvement in illicit activities. The National Bank of Cambodia made the decision to withdraw the license due to Huione Pay’s noncompliance with existing regulations and recommendations from regulators, as reported by Radio Free Asia.
Huione Guarantee, the Telegram marketplace associated with Huione Group, has been accused of processing up to €22 billion in illicit transactions since 2021, making it the largest illegal online marketplace in the world, according to cryptocurrency compliance firm Elliptic. This has highlighted the group’s role as a hub for cyberscam operations in Cambodia, where a sprawling industry worth an estimated €11 billion annually has become a significant part of the nation’s economy.
The involvement of Hun To, a director of Huione Pay and a cousin of Cambodian Prime Minister Hun Manet, has added further controversy to the situation. Despite the allegations of illegal activity against Hun To and the Huione Group, the group has denied any wrongdoing and claimed that Huione Pay voluntarily relinquished its banking license last year.
The crackdown on Huione Group comes at a time when Cambodia is under pressure from both China and Western governments to address the issue of cyberscams. The industry, which has expanded during the COVID-19 pandemic, has led to the exploitation of thousands of people, including many foreigners who have been coerced into working in scam operations in Cambodia.
The international implications of the cyberscam industry in Southeast Asia have also raised concerns, with Chinese nationals being both perpetrators and victims of such operations. Beijing is now seeking closer cooperation with countries in the region to combat these scams, particularly as Chinese citizens have become targets of fraud in countries like Myanmar.
In response to the increasing scrutiny of the cyberscam industry, some countries are stepping up their efforts to crack down on illegal activities. Thailand, for example, has launched joint raids on scam operations along its borders with Myanmar and Cambodia, while also considering building a border wall to prevent the trafficking of victims.
Despite these efforts, Cambodia has been criticized for its refusal to address the issue effectively. The authoritarian government has been accused of stifling dissent and preventing information about the illicit industry from coming to light. While the recent measures against Huione Group may be seen as a superficial attempt to appease international pressure, experts believe that more decisive action is needed to tackle the root causes of the problem.
As the global community continues to grapple with the threats posed by the cyberscam industry, particularly in Southeast Asia, the need for coordinated efforts to combat these crimes has never been more urgent. The fate of thousands of victims, as well as the reputation of countries involved, hangs in the balance as authorities seek to dismantle these illicit operations once and for all.