Global Economy

Documents and insiders reveal how one of the world’s major money laundering networks operates.

Documents and insiders reveal how one of the world’s major money laundering networks operates.

By Selam Gebrekidan and Joy Dong

Photographs and Video by Chang W. Lee

Graphics by Weiyi Cai

Reporting from Phnom Penh and Sihanoukville, Cambodia

Every few weeks, fireworks light up the night sky in Cambodia, set off by scammers to salute their biggest swindles.

By the time the shells pop and crackle, somebody’s life savings are probably gone. Maybe the victim fell for an online romance scam or bought into a fake cryptocurrency exchange. Whatever the scheme, the money has vanished, sucked into a complex money-laundering network that moves billions of dollars at a dizzying speed.

The F.B.I., China’s Ministry of Public Security, Interpol and others have tried to combat scammers, who ​often lurk on social media and dating apps, luring people into bogus financial schemes or other ruses. Telecom companies have blocked numbers. Banks have issued repeated warnings.

Yet the industry persists because its money-laundering operation is so efficient. Unsuspecting victims worldwide lose tens of billions of dollars each year, money that must be scrubbed of its criminal origins and deposited into the legitimate economy. The money-laundering system is so hydra-headed that when governments strike it in one place, it pops up in another.

This underworld peeks out in the Cambodian capital, Phnom Penh, home to a global clearinghouse for money launderers. It can be glimpsed, too, in the coastal city of Sihanoukville, a notorious refuge for fraudsters. Scammers ply their trade from call centers, operating in fortified compounds or on the upper floors of unfinished high-rises. Seaside restaurants are packed with money launderers and other criminals doing business over spicy Chinese food.

CHINA

MYANMAR

VIETNAM

THAILAND

LAOS

thailand

Detail area

CAMBODIA

Phnom Penh

Gulf of

Thailand

Sihanoukville

VIETNAM

5o miles

Scammer

Matchmaker

Money mules

Money mules

Victim

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Source: www.nytimes.com