Cambodia’s Minister of Interior Sar Sokha has called for intensified efforts to suppress illegal online lending, urging citizens to stop repaying loans from unlicensed lenders and report such activities to authorities.
Speaking at the closing ceremony of the Interior Ministry’s annual review meeting, Sokha reiterated that illegal online loans often exploit borrowers and can lead to financial distress.
He instructed ministry officials to continue cracking down on these operations.
“I urge ministry officials to tell the public that if a lending group is illegal – especially if it involves foreign operators – then our citizens should not repay the loan. If there are any issues, they should report it to the authorities,” Sokha stated in a social media post.
Authorities have classified illegal online lending as a growing concern, citing incidents where borrowers face harassment, intimidation, and even violence from lenders.
Many of these operations require borrowers to provide sensitive personal information, such as National ID cards, raising concerns about data misuse and fraud.
The National Bank of Cambodia and the National Police have explicitly prohibited online lending platforms that operate without licenses.
Officials have warned that such schemes often charge exorbitant interest rates and use aggressive collection tactics.
The crackdown aligns with the government’s broader financial regulations aimed at protecting consumers.
Sokha clarified the distinction between legal microfinance institutions and unauthorized lending schemes, urging borrowers to verify lender credentials before taking loans.
Authorities have intensified efforts to identify and dismantle illegal lenders, including those operating from abroad.
The government has urged financial institutions and technology companies to collaborate in monitoring and blocking unlawful loan platforms.