Malaysian Man Arrested for Illegal Online Loan Operation in Cambodia

[CAMBODIA NEWS] Cambodian authorities have apprehended a Malaysian national for running an unlicensed online loan business in Phnom Penh. The arrest comes after numerous complaints from affected individuals, highlighting the growing concern over illegal lending practices in the country.



On July 29, 2024, the Anti-Cybercrime Department, in collaboration with the Phnom Penh Municipal Police, arrested a 40-year-old Malaysian man identified as Tee Pau Ann. The suspect was subsequently handed over to the Phnom Penh Municipal Court for legal proceedings.

According to officials, Tee had been operating the unauthorized online loan business in Cambodia since 2019. The operation involved a team that would contact potential borrowers and conduct on-site inspections before approving loans. The interest rates charged ranged from 15% to 18% for a 20-day period, violating Article 55 of the Law on Banking and Financial Institutions.

The Anti-Cybercrime Department reported that when borrowers failed to repay their loans, the suspect and his team would resort to aggressive collection tactics. These included visiting borrowers' homes, engaging in verbal harassment, and even physical intimidation. In some cases, they would take pictures of borrowers and their properties, posting defamatory content and threats on social media. Additionally, threatening leaflets were reportedly distributed in front of borrowers' businesses, causing fear and disrupting public order.

Authorities have urged the public to exercise caution when considering online loans and to verify the legitimacy of lenders before entering into any financial agreements. This case serves as a reminder of the potential risks associated with unregulated lending practices in Cambodia.

Here is a message we received about this story, suggesting there's more of these 'loan sharks' operating in Cambodia:

"Hi

There are many of these fradulant 'financial institutions' on Facebook
advertising and other social media (mostly in English) offering loans, some
posing even as 'banks' offering 'business loans' of between $100k-$300k.

They are actually PAWN SHOP OWNERS and LOAN SHARKS run by Chinese,
Malaysians, most have ties with junket groups in Naga and charging between
10%-15% per month. These people that come to visit the borrowers usually
come in T-shirt and jeans, even some come with slippers as we have had some
experience before. They communicate through translators and do not have
business cards when asked, just a reference place and most are located at
the Cambodia Korea Cultural Center beside Naga 2.

Your article is very good but maybe you can share this with Khmer Times, PP
Post and other social media channels to warn people and report them to the
authorities esp. the police.

Thanks for highlighting this article, hope u can catch the other 3 or 4
more... Good job guys!"

Alex wrote: ↑Fri Aug 09, 2024 10:58 am Do they require collateral for those loans? Or is the general expectation that they will just harvest your organs if you default?

The Usury Shark can smell blood from kilometers away.

It'd be interesting to see one of those leaflets.