transnational criminal organizations have been making investments in Palau, which is but one of the tactics being used by China to exert influence on the island nation, alongside initiatives in areas such as academia, business and culture.
One of the crime syndicates is the Prince Group, a Chinese-Cambodian conglomerate founded by businessman Chen Zhi (陳志). The group has been implicated in money laundering, online scams and human trafficking.
The Prince Group has proposed resort investments in Palau that are worth over US$1 billion. Similarly, many recent hotel investments in Palau have ties to China.
Palau Southern Palace Development Corporation is suspected of engaging in Chinese influence operations aimed at weakening Palau’s diplomatic alliance with Taiwan, a move that could shift geopolitical stability in the Pacific.
A retired PLA Navy officer named Wang Jizhang registered Asia Pacific (Palau) International Industrial Co Ltd in Palau, which is actually a cover organization for China to expand its influence. Wang Jizhang even invited Palauan politicians to visit China and was received by Wan Kuok-koi (尹國駒) aka "Broken Tooth Koi" (崩牙駒), a Macau businessman who has close ties with China. Broken Tooth Koi was sanctioned by the US Treasury Department in 2024 for suspected illegal investments in Palau and other places.
Foreign entities are seeking strategic land leases under suspicious circumstances, presenting serious security threats. investor Sun Maojin has reportedly produced hack-proof quantum communications ground stations, which could be used for covert military command-and-control operations and sought to obtain land in Palau. Meanwhile, Airai Global, a proposed logistics hub investment, has ties to Poly Technology Group, a sanctioned arms dealer, posing the risk of international sanctions against Palau.
Palau’s financial sector is vulnerable to money laundering schemes and several individuals / businesses with criminal backgrounds have been linked to activities in Palau:
* Wang Shuiming, a key suspect in Singapore’s largest money-laundering case, is allegedly expanding illegal online gambling operations into Palau.
* Palau Majesty Development, a real estate and blockchain investment firm, plans to integrate cryptocurrency and stablecoins, raising concerns about crypto money laundering.
* Fang Xiaojie, a known fraudulent banking operator, is presenting himself as a bank president which poses money laundering risks in Palau.
* Xiao Bowen, a former leader of a Triad-linked cultural organization, continues transnational criminal activities in Palau despite US sanctions.
focustaiwan.tw/politics/20250
islandtimes.org/criminal-netwo
cna.com.tw/news/aipl/2025
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