Reports coming from Timor-Leste suggest that the Asian island nation has cancelled existing online gambling licenses and has stopped issuing new ones.

According to Plataforma Media, the government has cited concerns about national security threats as reasoning behind its decision.

The move happened shortly after a report by the United Nations Office on Drugs and Crime (UNODC) unveiled that criminal activity has been on the rise in the Timorese special administrative region of Oecussi.

As if to serve as further proof for the above statement, authorities in Oecussi arrested 10 people alleged to have participated in computer fraud and illegal gambling, which often ends up funding organised crime syndicates.

The official cabinet statement on the resolution to ban online gambling, presented by Cabinet Affairs Minister Agio Pereira, reads that there have been “identified risks to the country’s security, social stability, economic integrity and international reputation”.

Pereira will now form a working committee with representatives from various Timorese security forces to oversee the implementation of the resolution.

Asia in general has been known to host international criminal groups that hide behind the facade of gambling to launder their money, with sister organisations operating all over the world.

Asia-facing operators often try to make their way into Europe through white label licenses, such as the case with TGP Europe. The company operated several brands that managed to land high-profile sponsorships with Premier League teams in the UK.

However, those found to collaborate with such companies can often find themselves in trouble with regulators, as such operators rarely own a licence to operate in regulated markets.

Having that in mind, Timor-Leste’s reforms come just in time to protect the island nation’s reputation, given that it is currently awaiting approval to join the Southeast Asian Nations (ASEAN).