US sanctions DKBA armed group and Thai national linked to scams
US sanctions Myanmar’s DKBA and Thai nationals linked to transnational scam and money-laundering networks, establishing "Scam Centre Strike Force" targeting Myanmar, Cambodia, and Laos.
- The U.S. has sanctioned the Democratic Karen Benevolent Army (DKBA), a Myanmar-based armed group, and its key leaders for providing protection and support to scam centers involved in human trafficking.
- A Thai national, Chamu Sawang, and his company, Trans Asia, were also sanctioned for acting as a front for Chinese criminal organizations to establish and invest in these scam operations.
- The sanctions are a response to a vast criminal network that targets U.S. citizens with call center scams, resulting in billions of dollars in losses and relying on forced labor.
- The action freezes all U.S.-based assets of the sanctioned individuals and entities and prohibits U.S. persons and companies from conducting any transactions with them.
The US Department of the Treasury, through its Office of Foreign Assets Control (OFAC), has imposed sanctions on several Myanmar-based armed groups, companies, and individuals, including Thai nationals and a company registered in Mae Sot, Tak province.
This action is part of a broader effort to dismantle Southeast Asian-based call centre scams and human trafficking networks targeting US citizens, causing significant financial harm, and facilitating forced labour in these fraudulent operations.
Key Entities Sanctioned
The identification of individuals and organisations behind this criminal network reveals the intricate connections between Myanmar armed groups, Chinese criminal organisations, and Thai-registered companies, which play a crucial role in facilitating and laundering money from illegal activities. The list of individuals and organisations sanctioned by OFAC includes:
Armed Groups
- Democratic Karen Benevolent Army (DKBA): A Myanmar-based armed group that provides protection and support for scam centres and is involved in using violence against human trafficking victims.
Companies
- Trans Asia International Holding Group Thailand Company Limited (Trans Asia): A Thai company based in Mae Sot, Tak province, used as a front company for Chinese criminal organizations to invest in and establish scam centres in Myanmar.
- Troth Star Company Limited (Troth Star): A Myanmar company collaborating with Trans Asia to develop scam centres.
Key Individuals (DKBA)
- Sai Kyaw Hla: General and senior leader of DKBA, founder of the "Tai Chang" scam centre.
- Saw Steel: Supreme commander of DKBA.
- Saw Sein Win: Administrative officer (Adjutant General) of DKBA.
- Saw San Aung: Chief of Staff of DKBA.
Key Individuals (Thai Nationals)
- Chamu Sawang (Yu Jianjun): A Thai national and director of Trans Asia, named directly in the sanctions for his role in supporting illegal activities.
These individuals and organisations are deeply embedded in a criminal network that has caused immense harm and is directly linked to severe human rights violations, including human trafficking.
Crime Model: From Call Centres to Human Trafficking
According to the latest US government data, American citizens lost at least $10 billion to scammers in Southeast Asia last year, a 66% increase from the previous year. This highlights the urgent need for decisive measures to stop these networks.
The scam operations in the region are complex and brutal, following these key steps:
- Targeting Victims: Criminals initiate relationships with victims through messaging apps, building trust and friendship.
- Fraudulent Schemes: Once trust is established, scammers convince victims to invest in digital assets via fake platforms, all controlled by criminal groups, to steal the victims’ money.
- Forced Labour: Behind these scams is a systematic human trafficking operation. Victims are lured to work under pretences but are forced to work in scam centres, often subjected to debt bondage, physical abuse, electric shocks, and threats to keep scamming American citizens.
The DKBA plays a critical role in supporting these operations, protecting scam centre locations, such as the Tai Chang centre in Kayin State, Myanmar. They have been documented using violence against human trafficking victims forced to work in these centres.
The massive profits from these scam centres are not only reinvested into further illegal activities but also used to fund the DKBA's operations, including drug trafficking, human trafficking, and arms trade.
This network has expanded beyond Myanmar, with direct links to Thailand, where Thai companies like Trans Asia facilitate money laundering and support transnational crime organisations.
Thailand’s Involvement
A key concern for Thailand is that the sanctions extend beyond Myanmar to include Thai entities and nationals, indicating that Thailand has been used as a base for supporting cross-border criminal networks.
Trans Asia International Holding Group Thailand Company Limited, based in Mae Sot, Tak, has been identified as a “front company” for Chinese criminal organisations investing in large scam centres in Myanmar, including Huanya and KK Park, notorious for housing and exploiting human trafficking victims.
Additionally, Chamu Sawang, a Thai national and director of Trans Asia, has been directly sanctioned for his leadership role in supporting these illegal activities.
US Strategy for Cross-Agency Enforcement
To intensify its efforts, the US has mobilised a collaborative approach involving key agencies, including:
- Federal Bureau of Investigation (FBI)
- Department of Justice
- US Secret Service
- Drug Enforcement Administration (DEA)
A new task force, the “Scam Centre Strike Force,” has been established to investigate, disrupt, and prosecute scam centres and their leaders across Southeast Asia, specifically targeting Myanmar, Cambodia, and Laos. This represents an unprecedented level of commitment to dismantling these criminal networks.
Impact of Sanctions
The OFAC sanctions will have severe legal and economic consequences for the individuals and organisations named, cutting off their financial resources and restricting their ability to operate. Immediate effects include:
- Asset Freezes: All assets and interests in the U.S or under US jurisdiction will be blocked and must be reported to OFAC.
- Transaction Prohibitions: US persons and entities are prohibited from engaging in financial or commercial transactions involving the sanctioned individuals or entities.
- Financial Institutions at Risk: Any financial institution or individual conducting transactions with those sanctioned may face penalties, cutting them off from the global financial system.
This US action serves as a stern warning to transnational criminal networks in Southeast Asia, signalling that activities targeting American citizens and involving human trafficking will not be tolerated. The direct targeting of Thai entities underscores the pressure on Thai authorities to enhance their efforts to investigate and combat criminal organisations using Thailand as a base for money laundering and supporting cross-border crime networks.
