The resolution, introduced by Minister of the Presidency of the Council of Ministers Agio Pereira, also orders the cancellation of ongoing licensing procedures and the prohibition of issuing new licences for such activities, according to an official statement.

Authorities explained that the decision follows concerns about threats to the country’s security, social stability, economic integrity, and international reputation. Implementation of the measures will be overseen by the responsible minister in coordination with security forces.

The move comes shortly after a UN Office on Drugs and Crime (UNODC) report, released on September 11, warned of the growing presence of criminal networks in Oecussi, a Timorese enclave located on the Indonesian side of Timor island. Investigations revealed clear evidence of digital criminal activity, including the involvement of individuals previously convicted of similar offenses in other Asian nations.

Timorese authorities had earlier detained 10 suspects in Oecussi on allegations of illegal gambling operations and computer fraud.

According to UNODC experts, the fraud centre industry in Southeast Asia appears to be expanding into Timor-Leste, showing troubling similarities to illicit online gambling hubs in Cambodia, Laos, the Philippines, and Malaysia. The report also warned that the problem could escalate with Timor-Leste’s upcoming accession to the Association of Southeast Asian Nations (ASEAN) in October.

The same report raised further concerns, noting that a person holding a government position in Timor-Leste is among the owners of a hotel allegedly hosting companies engaged in criminal activity. The facility has also been linked through business interests to another hotel in Dili, connected to the recently ousted leadership of the Oecussi Special Administrative Region (RAEOA).