Chinese Scammers Operate Front Businesses Including Hotels in Yangon, Local Military, Police and Administrative Officials Receive Millions in Bribes

Chinese scam syndicates are continuing their online money laundering operations by opening legitimate businesses, including hotels and language schools, as fronts in Yangon, according to individuals who previously worked in these scam operations and have since left, told Khit Thit Media. Following the military's crackdown on scam syndicates in Myawaddy Township, Kayin State, Chinese individuals involved in scam operations have reportedly relocated to Yangon city. Many Chinese nationals who came from Myawaddy have resettled in Hlaingthaya Township. It is understood that Chinese scam syndicates are operating their online money laundering businesses by setting up fronts under the guise of legitimate businesses, spreading out across various locations within Yangon city. These Chinese scam syndicates are reportedly holding Myanmar national registration cards, including those from northern Shan State and, more recently, registration cards from Yangon Region. It is understood that Chinese scam syndicates are not only opening hotels, KTVs, and bars but are also renting condominiums and applying for business licenses under various names such as Chinese language schools, computer training centers, and Korean conversation classes, continuing their scam online money laundering operations. Currently, Chinese-owned Mandarin Hotel, Hlaingthaya Hotel, and L.C Hotel in Hlaingthaya Township, Yangon Region, have opened as hotels, but they have very few guests, and their online scam operations are reportedly ongoing. "In Hlaingthaya, hotels, guesthouses, and bars are all run by Chinese people. There are no customers. It's just their people. Outsiders are not allowed in. They work behind closed doors only with Chinese nationals. They are engaged in scamming money online. They obtain licenses for hotels and guesthouses and conduct online money laundering inside. The military knows, the police know, and the administrative officials know. They have paid bribes to everyone," explained a source for Khit Thit, who is aware of these situations. Furthermore, Chinese scam syndicates fleeing from Myawaddy Township have spent vast sums of money to purchase properties in FMI Housing, Aung Zay Yar Housing, Nawaday Housing, Kyansitmin Housing, and Thihlaing Shin Housing at high prices and have settled there to conduct their businesses. To avoid arrest and prosecution, Chinese scam syndicates are reportedly paying monthly bribes in the hundreds of thousands of kyats to local ward administrators, housing administrators, officials from the Township General Administration Department (GAD), and local military and police personnel. Similar to Hlaingthaya Township, in Tamwe Township, the township administrator Myat Win, and in Bahan Township, the township administrator U Kan Win, are reportedly protecting Chinese scam syndicates. In Thihlaing Shin Housing in Hlaingthaya Township, housing committee members and the military are reportedly colluding to receive bribes and protect Chinese scam syndicates who have settled there. "Chinese scam syndicates put up signs for legitimate businesses, but the doors are always closed. Inside, their people are packed in. There are many in Tamwe Township as well. In Hlaingthaya Township, they settle in places like Chinese-owned Mandarin Hotel, Hlaingthaya Hotel, L.C Hotel, FMI Housing, Aung Zay Yar Housing, Nawaday Housing, Kyansitmin Housing, and Thihlaing Shin Housing. It's all Chinese people. They provide hundreds of thousands of kyats monthly to ward administrators and housing administrators. That's why they are all fighting over those places. In Tamwe, it's Township Administrator U Myat Win. In Hlaingthaya, it's the housing committee members from Thihlaing Shin Housing who are colluding with the military. And in Bahan, it's Township Administrator U Kan Win who is protecting the Chinese scam syndicate at Shwe Lay Pya Hotel. Why do we know them? Because the scam networks are all the same, spread throughout Yangon city. We have to be in contact with them all the time," explained a source who previously worked in scam operations. In 2024, the commander of the 1st Tactical Command in Hlaingthaya Township, the township administrator, and the police chief were reportedly investigated regarding scam activities within Aung Zay Yar Housing but managed to escape by paying bribes at various levels. It is understood that senior military officers in Yangon Region, along with lower-level township and housing administrators, have received substantial bribes from scam syndicates and Chinese scam operators, and have become wealthy by purchasing land plots worth tens of millions of kyats. Photo: Chinese-owned hotels opened in Hlaingthaya Township, Yangon Region.