In recent years, as Shan State has intensified its crackdown on online money laundering gangs, these criminal organizations have gradually shifted their bases to the Thai-Myanmar border area.
Especially in the areas around Tak, Mae Sot, including Shwe Kuk Kol, illegal gambling and money laundering activities are becoming increasingly rampant, and Three Pagodas is gradually evolving into a new underground gambling city.
According to local residents of Three Pagodas, in 2023, only a small number of Chinese people relocated to the city, but by 2024, nearly 7,000 Chinese citizens had arrived and gradually settled in the area. On January 26 this year, about 400 Chinese people moved from Shwe Kuk Kol in Mae Sot to Kawkareik, and some even returned from Jingxi Road. Residents say that with the increase in Chinese immigrants, rents have skyrocketed, making it difficult for many local wage earners to afford the high housing costs.
In addition to the relocation of money laundering gangs, local online gambling and illegal trading activities are also increasingly rampant. The cybercrime organizations in Mae Sot Province take advantage of the unique geographical location of the Thai-Myanmar border area to engage in online gambling and fraud. Thailand has taken measures, cutting off some of the electricity supply to the Three Pagodas area starting February 5, to curb these illegal activities. However, criminal groups are still looking for other ways to continue operating.
Moreover, the illegal wildlife trade in the Three Pagodas area has also attracted widespread attention. Local residents say that some criminal gangs are suspected of being involved in tiger smuggling, and the Karen National Army (KNA) and its reformed Border Guard Force (BGF) may provide shelter for this industry. Similarly, Three Pagodas under the control of the Democratic Karen Buddhist Army (DKBA) may also allow such activities to proceed.
Facing the increasingly serious problem of transnational crime, the international community is stepping up its efforts. On February 5, the DKBA announced that if requested by Myanmar and international agencies, they would actively cooperate in searching for victims of human trafficking and combating the region's human trafficking issues. However, the local government has long turned a blind eye to DKBA's illegal activities, causing the problem to remain unresolved for a long time.
The security situation in Three Pagodas is also deteriorating. According to residents, with the increase in illegal gambling and cybercrime activities, theft, robbery, and even murder cases occur frequently, and criminals often remain at large. At the same time, under the protection of the DKBA, Chinese investors are allowed to carry firearms and engage in various commercial and illegal transactions in the area, causing strong unease among local residents.
Historically, Three Pagodas was a border area between the Mon and Burmese ethnic groups in Myanmar, officially upgraded to a city in 1992, and gradually prospered through commercial development. However, today, the city is gradually turning into a black economy center focused on money laundering, gambling, and illegal transactions. Local residents worry that if this trend continues, Three Pagodas may eventually become "the casino of Southeast Asia," completely changing its original cultural and social structure.
