End of Scam Compounds? Myanmar Enacts Harsh Law to Crack Down on Fraud: Death Penalty for Forced Labor, Abuse

Myanmar's military-backed parliament recently passed legislation that imposes a minimum 10-year prison sentence, up to the death penalty, on cyber scam suspects involved in human trafficking, forced detention, or using violence to coerce others into online fraud.

Certain border regions in Myanmar are controlled by armed groups or militias, such as Myawaddy and Kokang, which have become global hubs for cyber fraud, human trafficking, and forced labor in recent years.

Myawaddy Township, located in Myanmar's Karen State near the Thai-Myanmar border, is one of the 'scam compounds' that has been subjected to power cuts. (Associated Press)

Under international pressure from countries like the United States and China, Myanmar's President Min Aung Hlaing has pledged to strongly combat illegal online fraud.

According to a draft released by Myanmar in May, 'forcing others into online fraud through violence, abuse, torture, illegal abduction, or detention' will be punishable by a minimum 10-year prison sentence, life imprisonment, or the death penalty.

The bill was formally passed on the 28th by the military-dominated parliament.

Lower House lawmaker Aye Chan told AFP that the death penalty clause has been officially included in the bill.

For fraud crimes resulting in death, the law explicitly states: 'shall be sentenced to death.'

Additionally, operators of cyber scam centers or criminals involved in cryptocurrency-related fraud may face life imprisonment.

The United Nations Office on Drugs and Crime (UNODC) previously reported that after crackdowns on major scam hubs like KK Park and Shwe Kokko in Myanmar, the masterminds have relocated to Cambodia.

Upper House lawmaker Naw Yuzana Wah told AFP that international pressure is pushing Myanmar officials to actively address the fraud crisis.

She said: 'We face many challenges because many armed groups and organizations are involved in this industry.'