Casinos, Money Laundering, Underground Banking, and Transnational Organized Crime in East and Southeast Asia: A Hidden and Escalating Threat

List of Key Chapter Titles

1. Preface
2. Report Compilation and Analysis
3. Regional Overview
4. Underground Banking and Money Laundering Methods: Case Studies
5. Zhou Zhuohua and the SunCity Junket Group
6. Taiwan, China; Money Laundering Networks; and Organized Crime in the Mekong Region
7. The First Special Administrative Region of Kokang, Myanmar
8. The Convergence of Online Gambling, Cyber Fraud, and Human Trafficking
9. The Application of Generative AI, Deepfake Scams, and Malicious Technologies
10. Policy Recommendations

Document Introduction

Southeast Asia and the Mekong region are facing unprecedented challenges from transnational organized crime and illicit economies. The area has become a testing ground for the application of new technologies in criminal activities. The continuous expansion of synthetic drug production and supply is a notable feature, while the covert transformation of regional underground banking and money laundering operations is equally alarming. The expansion of the illicit economy has driven revolutionary changes in the underground banking system.

The casino industry, junket groups, online casinos, electronic junkets, and under-regulated or illegal cryptocurrency exchanges have become the core financial infrastructure relied upon by organized crime. These entities can efficiently transfer and launder large amounts of fiat currency and cryptocurrency, creating channels for criminal proceeds to enter the formal financial system. Simultaneously, the technology-enabled upgrade of the criminal environment has attracted more criminal networks, innovators, and service providers, further expanding the regional illicit economic ecosystem.

This report is based on over a year of in-depth research, integrating comprehensive analysis of criminal indictments, case records, financial intelligence, and court documents, and consulting with international and regional law enforcement and criminal intelligence partners. The report details key issues such as the shift and evolution of cross-border gambling, the proliferation of online casinos and the infiltration of organized crime, money laundering mechanisms based on casinos and junket groups, the rise of "money-running" groups and "car teams," and the abuse of cryptocurrency. Through specific cases such as the Zhou Zhuohua case, related criminal networks in Taiwan, China, and the Kokang region of Myanmar, the report reveals the operational mechanisms and severe dangers of these criminal activities.

The report points out that organized crime is gradually migrating to areas with weak oversight such as Myanmar's autonomous regions and special economic zones, while actively integrating advanced technologies like mirror websites, blockchain technology, and generative AI, making criminal activities more covert and complex. The deep integration of online gambling, cyber fraud, and human trafficking, along with the application of malicious technologies, further exacerbates regional security risks.

Based on the research findings, the report proposes a series of recommendations from three dimensions: knowledge and awareness, legislative policy, and law enforcement and regulatory response. These aim to help regional countries enhance their response capabilities, strengthen cooperation and coordination, lay the foundation for addressing casino-related organized crime, and provide a reference for in-depth collaboration among Southeast Asian nations, the United Nations Office on Drugs and Crime, and international partners.