Special Declaration: This article is an original work by Attorney Shao Shiwei. It reflects only the personal views of the author and does not constitute legal consultation or legal advice on any specific matter. For article reprints, legal consultations, or business exchanges, please add: sswls66

 

The hit movie "No More Bets" has sparked a new wave of anti-fraud publicity online, drawing greater public attention to Northern Myanmar, a region bordering China. In the film, Chinese police conduct cross-border arrests of fraud syndicates, successfully bringing the perpetrators to justice.

According to officially disclosed data, in 2020 alone, losses from telecommunications fraud in China exceeded RMB 35 billion, with over 60% of cases involving overseas dens. Northern Myanmar accounts for the vast majority of such overseas telecommunications fraud. It is rumored that Northern Myanmar harborsmore than 100,000telecommunications fraudsters. However, as many entered the region through illegal border crossings, the actual number is difficult to ascertain[i].

 

In October 2019, the Ministry of Public Security, in its review of international police cooperation over the 70 years since the founding of the People's Republic of China, stated: "Since 2015, Chinese public security organs have engaged in deep cooperation with police forces in more than 10 countries across Southeast Asia, Africa, and Europe to combat telecommunications fraud. This effort has dismantled over one hundred dens and arrested nearly5,000 suspects."。[ii]”

 

As mentioned earlier, these 5,000 suspects represent statistics spanning five years, covering more than 10 countries across three continents. Compared to the estimated 100,000 telecommunications fraudsters in Northern Myanmar, this figure is remarkably small.

 

In the movie, Chinese police successfully conduct cross-border arrests of criminal syndicates hiding in Northern Myanmar, and the fraudsters receive their due punishment. As an anti-fraud promotional film, it is indeed satisfying and filled with positive energy, providing the public with a deeper understanding of judicial authorities' anti-fraud efforts.

 

However, art originates from life but also transcends it.

 

In light of the data presented above, we are compelled to raise several questions: Is there a gap between ideal and reality? Why is telecommunications fraud in Northern Myanmar so rampant? Can Chinese public security organs directly enter Northern Myanmar to make arrests?

 

 

Author: Attorney Shao Shiwei

 

 

 

 

01

Why is telecommunications fraud in Northern Myanmar so rampant?

 

Success depends on timing, geographical advantage, and human harmony. Northern Myanmar’s current status is shaped by its unique geographical, judicial, and cultural characteristics.

 

Myanmar, located in Southeast Asia, covers an area comparable to China’s Qinghai Province and is home to 135 ethnic groups. It is divided into "Upper Myanmar" and "Lower Myanmar." Lower Myanmar, near the Bay of Bengal and the Andaman Sea, enjoys relatively better public order. Upper Myanmar refers to Northern Myanmar, a region characterized by rugged terrain, high mountains, and dense forests. Dozens of warlord factions operate there, with the most powerful being the Wa State, Kokang, Mong La, and Tachileik, collectively known as the "F4 of Northern Myanmar."

To maintain a high degree of autonomy within their territories and build military and economic strength sufficient to rival the government army in support of armed activities, Northern Myanmar warlords have developed violent industries such as gambling, drugs, prostitution, and fraud. After a period of stalemate, the Myanmar government agreed to grant "high autonomy" to armed groups in Northern Myanmar in exchange for domestic peace.

 

Consequently, Northern Myanmar has become a third-party interest group independent of both the Chinese and Myanmar governments. From the perspective of the Northern Myanmar military authorities, telecommunications fraud offers low costs and high profits, while also stimulating local consumption and driving regional economic development. As long as fraud syndicates pay substantial rents and management fees, the military authorities support their growth, even establishing special economic development zones, issuing business licenses, and providing armed protection.

 

Due to this policy support from local powers, telecommunications and online fraud syndicates in Northern Myanmar have grown increasingly large-scale, forming highly centralized criminal groups with clear multi-level divisions of labor. According to reports, at least 1,000 industrial parks in parts of Northern Myanmar are involved in telecommunications fraud.

 

 

02

Can Chinese public security organs directly enter Northern Myanmar to make arrests?

 

1. "Chinese Do Not Defraud Chinese"

 

The primary targets of Chinese nationals committing telecommunications fraud in Northern Myanmar are residents of mainland China. Does China have jurisdiction in such cases?

 

China’s Criminal Law stipulates two types of jurisdiction: territorial jurisdiction and personal jurisdiction.Territorial jurisdictionmeans that China has jurisdiction if either the criminal act or its consequences occur within Chinese territory;Personal jurisdictionmeans that China has jurisdiction over crimes committed by Chinese nationals outside Chinese territory.

 

Therefore, China has the authority to exercise jurisdiction if the offender is a Chinese national or if the criminal act or its consequences occur within China. Can Chinese public security organs then directly deploy forces to eradicate telecommunications and online crime dens in Northern Myanmar?

 

2. Jurisdiction vs. Enforcement Authority

In the film "No More Bets," anti-fraud expert Zhao Dongran states: "If you suspect your neighbor stole your belongings, you cannot break into their home to search; you must have enforcement authority."

 

Although China’s Criminal Law establishes jurisdiction, practical enforcement is not straightforward. Law enforcement personnel from one country entering another without proper authorization may be suspected of infringing upon the other country’s sovereignty when performing official duties. Arrests must be carried out by the host country’s law enforcement personnel. Initiating cross-border case procedures requires communication, cooperation, and division of labor between the two countries and their respective departments. Embassies of both countries also bear the responsibility of organizing negotiations and advancing the process. (Not to mention cross-border cases; even cross-provincial or cross-district cases within China require strict approval procedures before they can proceed.)

 

Thus, while China has jurisdiction, it lacks enforcement authority in foreign territories. Cross-border pursuits require cooperation from local law enforcement agencies. Currently, Northern Myanmar’s economy heavily relies on the substantial economic benefits generated by criminal groups involved in telecommunications fraud and online gambling. Would such a Northern Myanmar military government cooperate with us?

 

 

03

Are there other alternatives?

 

Currently, the main methods for apprehending fugitives abroad who have violated Chinese law include:

First, Extradition

If an extradition treaty exists between the two countries, China may request the other country to extradite the individual for punishment in China. However, the requested country is under no obligation to agree to the extradition.

It should be noted that China has not signed an extradition treaty with Myanmar.

 

Second, Repatriation or Deportation

These are indirect approaches. They involve Chinese police providing clues about the individual’s illegal activities to the foreign country. Upon verification, the foreign country, in accordance with its own laws, repatriates the individual to China or deport them from its territory, thereby enabling China to achieve its arrest objectives.

For example, according to recent news reports[iii], with significant assistance from law enforcement agencies in a West Asian country, Shanghai Yangpu Police successfully repatriated Xiang, a suspect in an illegal fundraising case who had been fugitive abroad for six years.

 

Third, Joint Law Enforcement

Police forces from multiple countries collaborate to arrest criminals. The most typical example is the Mekong River Operation, where China, Laos, Myanmar, and Thailand jointly arrested the Naw Kham criminal group. However, practical operations face numerous difficulties. For instance, the complex terrain of Northern Myanmar, with its vast primeval forests and mountain ranges, provides excellent hiding places for fraudsters. Fraudulent funds are transferred through multi-layered bank accounts within a short time, making tracking difficult. Joint law enforcement requires complex, multi-step approval procedures, during which fraudsters may prepare to flee.

 

Fourth, Persuaded Return

This involves law enforcement personnel using methods such as applying pressure, appealing to family ties, and increasing publicity to encourage fraudsters to voluntarily return to China.

For example, law enforcement personnel communicate with the families of individuals involved in fraud, showing them anti-fraud promotional materials to persuade their relatives to return voluntarily. Information regarding security risks, legal issues, and the benefits and support measures for returning to Myanmar is disseminated to fraudsters through broadcasts, leaflets, social media, and other channels. Several provinces and cities have even announced that household registration information will be cancelled for those who fail to return within a specified period.

Currently, persuaded return is the most frequently used method by Chinese law enforcement personnel.

 

 

04

China’s Current Judicial Landscape

 

China continues to combat telecommunications and online fraud and related crimes through international police cooperation.

On May 16, 2012, China and Thailand signed the "Memorandum of Understanding on the Handover of Criminal Suspects between the Ministry of Public Security of the People's Republic of China and Relevant Thai Authorities." That same month, Chinese and Thai police jointly dismantled a transnational telecommunications fraud syndicate specifically targeting Thai citizens, arresting 12 suspects.

In 2016, Guangzhou public security organs, in collaboration with Thai police, solved the major "June 26" transnational telecommunications fraud case. Fourteen suspects were escorted from Thailand back to Guangzhou. This syndicate had made over 2.45 million fraudulent calls within three months, involving more than 300 cases across various provinces and cities in China, with amounts exceeding RMB 30 million.

On November 21, 2018, the Chinese and Philippine governments jointly issued the "Joint Statement of the People's Republic of China and the Republic of the Philippines." Article 12 stated: "Both sides agree to strengthen law enforcement cooperation to jointly combat transnational crimes such as duty-related crimes, telecommunications fraud, illegal online gambling, computer crimes, human trafficking, and smuggling of endangered wild animals and plants and their products."

On August 14, 2019, Liao Jinrong, Director of the International Cooperation Bureau of the Chinese Ministry of Public Security, held talks with General NIAO, Director-General of the Cambodian National Police. They decided to establish a China-Cambodia Joint Office to Combat Economic Crimes, Online Fraud, and Online Gambling Involving Chinese Nationals.

On June 19, 2023, six telecommunications fraud suspects, including Lu, were handed over by Myanmar police to a Chinese police working group at Yangon International Airport and escorted back to China on the same day. These six individuals were arrested during a joint China-Myanmar-Thailand operation targeting telecommunications fraud crimes along the Myanmar-Thailand border.

From August 28 to 29, 2023, the 17th round of departmental-level meetings on the implementation of the "Agreement on Border Management and Cooperation between China and Myanmar" was held in Beijing. China and Myanmar reached important consensus on cooperation to combat cross-border telecommunications fraud.

 

 

05

Conclusion

 

As stated in "No More Bets," why do people still fall victim to fraud despite anti-fraud slogans being posted everywhere, even on eggs? Because humans have two hearts: one is greed, and the other is unwillingness to accept loss.

China’s joint law enforcement efforts with other countries to combat online fraud are ongoing, yet telecommunications fraud in Northern Myanmar remains rampant. From the perspective of the so-called "victims," are they truly pitiable?

 

 

[i] Northern Myanmar: The Most Rampant Hell on Earth for Fraud, Author: Douhua

[ii] "Research on Cross-Border Cybercrimes Committed by Chinese Citizens in Southeast Asia and Their Governance," originally published in Nanyang Problem Research, Issue 4, 2021

[iii] Yangpu Police Successfully Repatriate a Fugitive Suspect in Illegal Fundraising Case Abroad, Part of the Involved Funds Have Been Refunded https://baijiahao.baidu.com/s?id=1773999640657281981&wfr=spider&for=pc