UNODC Warns of Gambling Scams and Other Illicit Activities in Timor-Leste

The United Nations Office on Drugs and Crime (UNODC) has issued a warning that Timor-Leste, an enclave of East Timor surrounded by Indonesian territory and bordered by the Savu Sea, has emerged as the newest hub for gambling scam center operations affecting Southeast Asia and beyond.

UNODC Flags Growing Criminal Activity in Timor-Leste

The organized crime threat alert reveals that transnational organized crime groups have infiltrated Timor-Leste’s Special Administrative Region of Oecusse-Ambeno (RAEOA) through criminal foreign direct investment (FDI). This information emerged following a raid by Timorese intelligence and law enforcement on entities operating in the area.

Investigations into related investments and activities in the region suggest the presence of scam center operations, with evidence such as SIM cards and satellite internet devices found in a hotel in RAEOA. UNODC’s analysis connects these activities to organizations linked to convicted cybercriminals, offshore gambling operators. Speaking of offshore gambling operations, it was just a few months ago that Timor-Leste issued the inaugural offshore gaming license to GRU. 

UNODC’s report also found connections with China’s 14K Triad criminal group, which is the world’s second-largest triad organization, comprising approximately 20,000 members divided across thirty subgroups. The group has been involved in illegal gambling, loan sharking, money laundering, contract murder, arms trafficking, and many other illegal activities.

Why the Region Is Used for These Illegal Activities?

Oecusse, an enclave of East Timor surrounded by Indonesian territory and bordered by the Savu Sea, was designated as a digital free trade zone by the government in December 2024. Criminal organizations often exploit such “special economic zones,” which are intended to attract foreign investment, by establishing illicit operations through shell companies.

These operations generate billions in profits through a range of schemes, including illegal offshore gambling, online romance scams, and long-term investment fraud. In addition, these groups are involved in human trafficking. They often entice individuals from around the world with false job offers, only to detain them and force them to participate in criminal activities.

As awareness and understanding of scam centers and related criminal activities grow, law enforcement efforts across Southeast Asia have intensified, making it increasingly difficult for organized crime groups to operate in their traditional strongholds. In response, these syndicates are seeking to expand into new jurisdictions with limited capacity to detect and respond to scam center operations—such as Timor-Leste.

With Timor-Leste set to join the Association of Southeast Asian Nations (ASEAN) later this year, strengthening its economic and digital systems against infiltration by organized crime will be essential to safeguard both national security and regional stability. The situation in RAEOA underscores the risk of criminal networks strategically shifting their operations to less prepared jurisdictions, using foreign direct investment as a means to establish a presence and operate with minimal resistance in low-regulation environments.