Financial Crime World

Pacific Gambit: Unraveling the Chinese Communist Party and Triad’s Influence in Palau

Palau, a Pacific island nation with a population of 18,000 people, has gained unexpected attention from an unlikely source: China. Recently, Palau has seen an influx of Chinese citizens attempting to establish a foothold in the region, raising concerns about Chinese Communist Party (CCP) influence and organized crime networks.

A Growing Chinese Presence in Palau

In the last few years, an increasing number of Chinese immigrants, many of whom have secluded themselves in the capital city, Koror, have been revealed to be working for illegal online gambling operations targeting the Chinese market. Investigations by local authorities unveiled links to these businesses and the CCP and senior triad figures such as Wan Kuok Koi, also known as ‘Broken Tooth.’

Secluded Newcomers

Unlike tourists who explore the natural beauty of Palau, these newcomers remained closed off from the local community, relying on regular deliveries of food, goods, and sex workers to sustain their operations.

Illicit Chinese Ventures in Palau

Although these operations appeared diverse in nature, investigators suspected a connection between them and the CCP.

Online Gambling Operations

In 2019 and 2020, Palauan law enforcement detained and deported hundreds of Chinese immigrants involved in online gambling operations.

Connections to Senior Triad Figures

Further investigations revealed that these criminal networks extended beyond local gangs and had ties to senior triad figures such as Wan Kuok Koi, a notorious Chinese organized crime figure.

Local Elites’ Role in Chinese Influence

Despite these illegal activities, local elites and businesspeople, as well as former presidents Tommy Remengesau, Jr., and Johnson Toribiong, have welcomed these newcomers.

Cozy Ties to China

This Chinese push into Palau has been facilitated by established Chinese expatriates in the country.

The Implications of Chinese Influence for Palau’s Democracy and Sovereignty

Despite attempts by Palauan authorities to crack down on these illicit activities, they continue to resurface.

Chinese Aim to Spread Influence and Undermine Regional Stability

The CCP’s influence extends beyond economic interests, as they aim to spread their influence and undermine regional stability.

Investigating the Complex Web of Chinese Influence

A team of investigative journalists from the Organized Crime and Corruption Reporting Project (OCCRP) spent months exposing this intricate story, which raises critical concerns about the implications of Chinese influence for Palau’s democracy and sovereignty.

Uncovering Chinese Influence and Criminal Networks

Their extensive reporting sheds light on the web of Chinese influence, political machinations, and criminal networks that threaten the future of Palau and the entire Pacific region.

The Role of Independent Journalism in Exposing Foreign Interference

The critical role of independent journalism in exposing the true nature of foreign interference and its impact on democratic institutions is underscored by the journalists’ findings.