- US Treasury sanctioned scam groups in Burma and Cambodia linked to $10B in fraud and human trafficking
- Targets include KNA affiliates, property owners, energy suppliers, and money laundering networks
- Sanctions freeze assets, block US financial access, and trigger global business restrictions
The US Department of Treasury sanctioned multiple scam organizations that defrauded American citizens out of $10 billion last year, alone.
In an announcement posted on September 8, it was said that the groups ran several large operations in Southeast Asia, mostly in Burma and Cambodia.
Not only did they trick people through various romance scams and fake investment opportunities, but they are also engaged in forced labor, human trafficking, and physical violence.
Two dozen targets
Funds lost to these scams are up 66% year-on-year, the US government said, stressing the importance of the imposed sanctions.
“Southeast Asia’s cyber scam industry not only threatens the well-being and financial security of Americans, but also subjects thousands of people to modern slavery,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley.
“In 2024, unsuspecting Americans lost over $10 billion due to Southeast Asia-based scams and under President Trump and Secretary Bessent’s leadership, Treasury will deploy the full weight of its tools to combat organized financial crime and protect Americans from the extensive damage these scams can cause.”
Nine targets affiliated with the Karen National Army (KNA) in Burma are now sanctioned by the Treasury’s Office of Foreign Assets Control (OFAC), together with 10 targets located in Cambodia.
The full list can be found on this link. In short, they include individuals controlling the property that hosts scam centers, various KNA’s officials and holding companies, energy suppliers that power different scam centers, founders of money laundering operations, real estate companies, and more.
Being placed on OFAC’s blacklist means individuals and entities have their assets under US jurisdiction frozen and cannot access US banks, hold accounts in dollars, or move money through the US financial system.
It also means US citizens, companies, and organizations are not allowed to do business with sanctioned individuals and entities, and in some cases, it could mean visa denials and international watchlisting.
Many non-US banks and businesses also avoid sanctioned individuals, even if they’re not legally bound, because dealing with them can trigger penalties or loss of access to the US market.
Via BleepingComputer
