Chinese criminal syndicates expand across the Asia-Pacific, laundering billions
Criminal syndicates from China are spreading their influence across Southeast Asia, setting up operations in countries like the Philippines, Singapore, and Australia, aiming to launder illicit money and fuel illegal activities. In recent years, these groups have expanded beyond their homeland, operating illicit online casinos and scam networks.
A major event highlighting this expansion occurred in February 2023 when Australian police arrested nine Chinese nationals for running a shadow banking system tied to criminal organizations. One of those arrested, Steven Xin, was linked to notorious Macau gambling kingpin Alvin Chau. These networks are believed to control billions in capital, and experts like Jason Tower from the United States Institute of Peace (USIP) note that these groups now even control territories in Myanmar, backed by local militias and border guards.
The scope of these criminal organizations extends far beyond Southeast Asia. Tower reports that they target financial hubs like London and Dubai, and are involved in the trafficking of people from over 50 countries into Southeast Asia. The United Nations also reported that these syndicates force people into scam centers and other illegal operations.
In Southeast Asia, these criminal groups initially focused on offshore gambling but pivoted to large-scale scams after stricter regulations emerged post-COVID-19. The groups started in the Philippines in the early 2010s, operating illegal casinos targeting Chinese nationals, and then moved to Cambodia after law enforcement crackdowns. When Cambodia banned online gambling in 2019, these criminal organizations shifted their activities to Myanmar, where they established unregulated “megacities” such as Saixigang Industrial Zone and Huanya International City, often in special economic zones (SEZs).
Additionally, cooperation between Chinese law enforcement and Southeast Asian counterparts has increased to tackle issues like money laundering and human trafficking. Chinese authorities have responded proactively as reports show that Chinese citizens make up a significant portion of the trafficked victims in Myanmar and Cambodia.
Despite efforts from governments, these syndicates remain a powerful force in the region, with the full extent of their operations difficult to estimate. In a recent joint operation, Chinese and Myanmar authorities raided scam centers in Myanmar, arresting hundreds of individuals involved in a network that defrauded victims of millions. These operations signal a growing international effort to dismantle the networks that are devastating communities across Asia.
