Sihanoukville’s casino construction © Arno Maierbrugger “Inside Asia Gaming”, a special interest magazine headquartered in Macau, wrote in a report published on November 11 that US national authorities have warned US companies operating in Cambodia or considering doing so not to contact “certain entities of concern”. Interact with the sector, including the casino industry. The U.S. State Department, U.S. Department of Treasury, and U.S. Department of Commerce issued a joint statement, emphasizing that the risks faced by U.S. companies when dealing with Cambodian entities are not only active in the casino industry, but also in the financial sector. ..
US national authorities warn US companies operating in Cambodia or considering doing so not to interact with “certain entities and sectors of concern”, including the casino industry and special interest magazines in Macau Inside Asian Gaming Written in a report published on November 11.
The U.S. State Department, U.S. Department of Treasury, and U.S. Department of Commerce issued a joint statement, emphasizing the risks that U.S. companies face when dealing with Cambodian entities. They are not only active in the casino industry, but also in the financial, real estate and infrastructure sectors, according to illegal financing activities and trafficking. Population, wildlife and narcotics, and child labor are classified as “industry of concern.”
In the section devoted to casinos—especially the casinos in Sihanoukville—the statement pointed out that the number of casino licenses issued by Cambodia increased by 263% from 2014 to 2019, because it “surpassed the monitoring and supervision of these institutions by the regulators. The capacity of the institution attracts organized casinos.” Criminals who invest in casinos and use them to launder money. “
Cambodian government’s lax supervision
The statement further pointed out that although the Cambodian government has established an inter-ministerial working group to investigate suspected money laundering and human trafficking in Sihanoukville, as of October 2021, the agency has not issued a report on its investigation results.
The report stated that other red flags facing US companies are “limited financial supervision and financial transaction supervision” and “local and widespread corruption.”
The statement went on to say that the booming of Sihanoukville’s new casinos has further raised concerns about child labor and human trafficking, adding that although Cambodia’s 2020 ban on online gambling and the subsequent closure of many casinos and other entertainment venues temporarily reduced such Trafficking activities, but the problem is that as the Cambodian economy recovers from the Covid-19 pandemic, the number of child labor will continue to grow, which will lead to an increase in the number of child labor at construction sites and establishments (including casinos, hotels and karaoke bars).
“this [Cambodian] The government lacks the ability to deal with child labor and is overwhelmed by the scale of the problem,” the statement said.
Triad leaders and North Korean arms dealers
Among the specific companies concerned, the statement specifically mentioned companies related to the former Macau Triad leader Wan Kuok Koi and North Korean official Kim Chee Soo. The country’s former ambassador to Myanmar was accused by the United States of arms trading.
