The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced new sanctions on nine targets linked to scam operations in Shwe Kokko, Burma. These operations are reportedly protected by the Karen National Army (KNA), a criminal organization already under previous sanctions. The KNA is described as a transnational group facilitating online scams that target Americans and exploit workers through forced labor.
According to a U.S. government estimate, Americans lost at least $10 billion to scam operations in Southeast Asia during 2024.
In addition to the actions taken in Burma, OFAC also sanctioned four individuals and six entities connected with forced labor compounds in Cambodia. These compounds allegedly force workers to conduct virtual currency investment scams aimed at victims in the United States, Europe, China, and other regions.
Secretary of State Marco Rubio stated: "Criminal actors across Southeast Asia have increasingly exploited the vulnerabilities of Americans online. In 2024, Americans lost at least $10 billion to scam operations in Southeast Asia, according to a U.S. government estimate."
He continued: "These sanctions protect Americans from the pervasive threat of online scam operations by disrupting the ability of criminal networks to perpetuate industrial-scale fraud, forced labor, physical and sexual abuse, and theft of Americans’ hard-earned savings."
The Treasury’s actions were carried out under several executive orders related to combating transnational crime and cyber-enabled activities.
For more information on these designations, see Treasury’s Press Release.