The UK Crown Prosecution Service (CPS) has utilised Unexplained Wealth Orders and Interim Freezing Orders to freeze the assets of a wanted Chinese national, who allegedly has links to an illegal gambling network across China.
Having only previously been named as Mr X, the OCRP and The Times unveiled the fugitive at the centre of the asset freezing, Su Jiangbo, a Chinese national with significant allegations against him over links to illegal casinos.
Whilst there are no charges yet to be confirmed from UK authorities, 85 luxury London properties linked to Jiangbo have been frozen.
To purchase the properties in London, Jiangbo utilised a golden passport from St Kitts and Nevis, exposing a potential flaw in the UK’s anti-money laundering safeguards. However, the UK has implemented an Unexplained Wealth Order (UWO), asking Jiangbo to explain the source of funds which enabled a major spending spree, including on a myriad of properties across the UK capital.
Jiangbo’s links to an illegal casino network will be of significant concern, with Chinese officials accusing him of illegal cross-border online operations that targeted the country’s citizens.
Furthermore, given the levels of Jiangbo’s spending, it underpins the size of the global unlicensed market that it allegedly enabled him to accrue such levels of wealth.
The significant demand for gambling in Mainland China, where it remains largely prohibited, has fuelled the growth of the illicit market, often operating through bases in Cambodia, the Philippines or Singapore.
The consultancy firm IMARC Group estimated that China’s online gambling market was worth $11.4bn in 2024, projected to rise to $19.8bn by 2033.
Continued efforts to clamp down on casino centres in Cambodia have been undertaken this year, as enforcement action in the country underpinned the widespread operations that continue to impact Southeast Asia.
Clampdowns in Cambodia
According to reports earlier in the year, around 190 scam centres were closed down following a spree of action from Cambodian officials, with 173 senior crime figures being arrested.
Cambodia also recently revoked the citizenship of and extradited Chen Zhi, a Chinese-born business tycoon accused of running a major illegal gambling network.
Zhi’s playbook, in some ways, is similar to that of what Jiangbo is being accused of, with Zhi also collecting property in London.
The portfolio of Zhi was seemingly more diversified, though, as he was the Founder of Prince Holding Group, a multi-billion-pound conglomerate based in Cambodia.
The group was accused by UK and US authorities of constructing casinos and compounds to facilitate lucrative scams.
A statement from Cambodia’s Interior Ministry said: “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 – Chen Zhi, Xu Ji Liang and Shao Ji Hui and extradited to the People’s Republic of China.”
It was also alleged that Zhi used offshore companies to secure property investments in the UK’s capital city.
Although Jiangbo was directly tied to London property, Zhi, through his network of companies, was also subject to lucrative asset freezes from the UK government.
UK and US authorities aligned in accusing Zhi of undertaking “industrial scale” fraud, seizing 127,271 bitcoins, worth approximately $15bn, and frozen assets linked to the Prince group.
UK Foreign Secretary Yvette Cooper said when the sanctions were announced: “Together with our US allies, we are taking decisive action to combat the growing transnational threat posed by this network – upholding human rights, protecting British nationals and keeping dirty money off our streets.”
Ensuring Macau can thrive
With Chinese nationals the target for many of the unlicensed operators in Southeast Asia, securing a thriving market in Macau is still seen as a route to thwarting illicit actors.
In recent times, the Chinese government has also underpinned efforts to maintain the stability of Macau’s gambling sector and bolster the retention of VIP players in the region.
A surprising development saw Macau transition to a more lenient stance on currency exchange engagement within its venues, moving away from tight regulations.
Now, Galaxy Entertainment Group, Melco Resorts & Entertainment and SJM Holdings can all offer currency exchanges as a result of the recently implemented changes.
It forms part of a wider governmental effort to centralise control and ensure compliance around the casino sector, increasing the industry’s regulatory stability.
iGaming Expert Analysis: This story should reverberate through many sectors, as London’s property market seemingly continues to be a target for those gaining illicit funds through gambling. The concerns for the Southeast Asian market should also be stark, as the scale of the operations and the wealth accrued as a result of their undertaking becomes undeniable.
