US sanctions Myanmar, Cambodia entities for $10B forced labor scams

The United States Treasury Department has escalated its global campaign against illicit financial networks, recently imposing sanctions on 19 entities across Myanmar and Cambodia. These actions target sophisticated scam operations accused of defrauding American citizens and other victims of billions of dollars, often leveraging forced labor and modern slavery. The Treasury’s move underscores a significant concern over the escalating financial and human cost of these transnational criminal enterprises, which have seen a substantial increase in losses over the past year.

Targeting Transnational Cybercrime Hubs

The Office of Foreign Assets Control (OFAC) within the U.S. Treasury Department identified nine sanctioned entities within Myanmar’s Shwe Kokko town, a notorious epicenter for online fraud. Additionally, ten sites linked to similar scam operations in Cambodia were targeted. This dual approach highlights the interconnected nature of these criminal networks operating across Southeast Asia.

John K. Hurley, Secretary of the Treasury for Terrorism and Financial Intelligence, emphasized the dual threat posed by these networks. He noted that cybercrimes originating from Southeast Asia jeopardize the financial security of Americans while simultaneously subjecting thousands to modern slavery. The department estimates annual losses from such scams now approach $10 billion, marking a 66% increase from the previous year. This robust action by the Treasury aims to safeguard U.S. citizens from industrial-scale fraud, forced labor, and severe physical and sexual abuse.

Today, Treasury’s Office of Foreign Assets Control implemented sanctions against networks of scam centers across Southeast Asia that steal billions of dollars from Americans using forced labor and violence. The action includes nine targets operating in Burma, a notorious hub for… — Treasury Department (@USTreasury) September 8, 2025

Sanctions Against Myanmar’s Scam Operations

In Myanmar, the sanctions specifically targeted individuals associated with the Karen National Army (KNA), an ethnic militia group. The U.S. government cited the KNA’s direct benefit from scam compounds in Shwe Kokko, sanctioning its leader, Saw Chit Thu, and his deputies, Tin Win and Saw Min Min Oo. Several companies linked to the KNA, including Chit Linn Myaing Company and Shwe Myint Thaung Yinn Industry & Manufacturing Company, were also designated.

Further intensifying the pressure, the Treasury sanctioned She Zhijiang, a Chinese businessman, and his affiliated entities, Yatai International Holdings Group and Myanmar Yatai International Holding Group. Zhijiang and the KNA leaders are accused of developing the Yatai New City compound in Shwe Kokko, a sprawling complex reportedly hosting illicit activities ranging from gambling and drug trafficking to prostitution and extensive scam operations. Disturbing reports indicate victims were lured with false job offers, subsequently detained, and forced into running online scams, often enduring beatings and sexual assaults.

Addressing Cambodian Scam Hubs

Simultaneously, OFAC’s actions extended to Cambodia, where four individuals and six entities were sanctioned for operating scam compounds. These facilities, frequently disguised as legitimate casinos, hotels, or office complexes, were concentrated in key areas such as Sihanoukville and Bavet. The sanctioned individuals include Dong Lecheng, Xu Aimin, Chen Ai Len, and Su Liansheng, with their business interests spanning entities like TC Capital, KB Hotel, KBX Investment, Heng He Bavet, MDS Heng He, and HH Bank.

Many of these Cambodian facilities, initially constructed by Chinese investors as casinos, have reportedly evolved into primary hubs for cryptocurrency investment scams. These operations heavily rely on trafficked victims, who are often subjected to severe coercion, including physical abuse, and forced to execute online fraud and launder proceeds through the casinos. Incidents at locations like Sihanoukville and the Sun Sky Casino illustrate the brutality employed against victims. Similarly, in Bavet, individuals like Chen Ai Len and Su Liangsheng were linked to the Heng He Casino and other properties utilized for comparable illicit schemes.

Broader Strategic Implications

These latest sanctions build upon previous actions, including a May designation targeting the Karen National Army as a transnational criminal organization. Issued under Executive Orders 13581 and 14014, these measures block all U.S.-linked assets of the KNA and its leadership, prohibiting American individuals and entities from engaging in business transactions with them. Financial platforms, such as Huione Group, have also been identified and sanctioned for their role in laundering scam proceeds.

The U.S. Treasury Department affirms that these comprehensive sanctions leverage multiple authorities, targeting not only transnational criminal organizations and malicious cyber activities but also human rights abuses and actions that threaten regional stability in Myanmar. This concerted effort signals an ongoing commitment to dismantling sophisticated criminal networks that exploit vulnerable populations and undermine global financial integrity.