Cambodia has extradited to China three Chinese nationals, including the founder and chairman of  Prince Group,  a diversified Phnom Penh-based conglomerate that the United States and Britain sanctioned in October for alleged transnational criminal activities.

In a statement released on January 7, the Ministry of Interior says: "Within the scope of cooperation in combating transnational crime and pursuant to a request from the relevant authorities of the People's Republic of China, the authorities of the Kingdom of Cambodia have arrested three Chinese nationals namely Chen Zhi, Xu Ji Liang, and Shao Ji Hui and extradited [them] to the People's Republic of China.”

Cambodian nationality revoked

Chen Zhi's Cambodian nationality was revoked by a royal decree in December, in accordance with the law on nationality.

According to the ministry, the Cambodian police operation was carried out on January 6, following months of joint investigative cooperation between Cambodian and Chinese authorities.

“At last. Finally,” says a Chinese businesswoman who has long resided in Phnom Penh, adding that transnational criminal networks had mostly “cheated money from the Chinese”. 

According to the US Treasury, the Prince chairman “oversees a worldwide fraud and money-laundering network fuelled by illegal online gambling and human trafficking for forced labour in scam compounds ultimately owned by Chen Zhi and his close associates”.

It was not immediately clear if Xu Ji Liang and Shao Ji Hui are part of Prince’s operations, which focus on real estate and financial services. But neither was among the ten Prince employees the US Treasury targeted for sanctions in October.

Prince Bank liquidator named

In a separate announcement on January 8th, the National Bank of Cambodia ( NBC ) says Prince Bank will be liquidated, with Morison Kak MKA Audit-Accounting Co Ltd appointed as liquidator.

The local partner of London-based accounting firm Morison Global has been operating in Cambodia since 1996 and is a founding member of the Kampuchea Institute of Certified Public Accountants and Auditors.

“Prince Bank is suspended from providing new services, including accepting deposits and credit services,” the central bank says.

Depositors “can withdraw their money normally by preparing withdrawal documents, which will be processed in accordance with priorities” under the Law on Banking and Financial Institutions of 1999, which caused the closure of several commercial banks that were unable to meet new NBC capital requirements.

“Those who have taken loans from Prince Bank need to continue fulfilling their obligations as normal,” the NBC adds.

US and British sanctions

The US Treasury statement released on October 14 accuses Chen of laundering ill-gotten gains “through a complicated network of over 100 shell and holding companies”.

US sanctions covered 146 “targets” within Prince Group and were accompanied by the unsealing of a criminal indictment against Chen in the US District Court for the Eastern District of New York.

British sanctions, also announced on October 14, include freezing businesses incorporated in the British Virgin Islands and property investments in London.

According to the British foreign office, scam centres in Cambodia, Myanmar, and across Southeast Asia run their operations from disused casinos or purpose-built compounds.

On November 11, Prince Group released a statement saying it “categorically rejects” allegations that its chairman has engaged in any unlawful activity. “When the facts come out, the Prince Group and its chairman will be fully exonerated,” it adds. 

The US Treasury estimates that American losses to online investment scams have ballooned to almost US$17 billion in recent years and at least US$10 billion in 2024 – up two-thirds from a year earlier.