US imposes sanctions on Cambodian tycoon over scam centers
Individual targeted is close to Cambodian leader
Sanctions discussed for months, were repeatedly delayed, sources say
US-Cambodia ties strained by Phnom Penh's close links to China
Recasts with announcement
By David Brunnstrom, Francesco Guarascio and Poppy McPherson
WASHINGTON, Sept 12 (Reuters) - The United States announced sanctions on Thursday on Cambodian businessman and ruling party senator Ly Yong Phat as well as several entities over alleged abuses related to workers who were trafficked and forced to work in online scam centers.
The move, plans for which were first reported by Reuters, comes at a delicate phase in relations between the United States and Cambodia, which has moved ever closer to Washington's strategic rival China despite U.S. efforts to woo its new leader Hun Manet, son of longtime strongman Hun Sen.
Ly Yong Phat was appointed Hun Sen’s personal adviser in 2022.
The U.S. Treasury Department's Office of Foreign Assets Control said the sanctions targeted Ly's L.Y.P. Group Co. conglomerate and O-Smach Resort.
It said it was also sanctioning Cambodia-based Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel for being owned or controlled by Ly.
Bradley Smith, the Treasury's acting under secretary for terrorism and financial intelligence, said the move was made to "hold accountable those involved in human trafficking and other abuses, while also disrupting their ability to operate investment fraud schemes that target countless unsuspecting individuals, including Americans."
Cambodia and other countries in Southeast Asia have emerged in recent years as the epicentre of a multibillion-dollar criminal industry targeting victims across the world with fraudulent crypto and other schemes, often operating from fortified compounds run by Chinese syndicates and staffed by trafficked workers.
The Treasury statement said scammers leverage fictitious identities and elaborate narratives to develop trusted relationships and deceive victims.
In many cases, this involves convincing victims to invest in virtual currency, or in some cases, over-the-counter foreign exchange schemes, it said.
The statement said traffickers force victims to work up to 15 hours a day and, in some cases, "resell" victims to other scam operations or subject them to sex trafficking.
It noted that the U.S. State Department's annual Trafficking in Persons Report this year highlighted abuses in O’Smach and Koh Kong and that official complicity in trafficking crimes remained widespread, resulting in selective and often politically motivated enforcement of laws.
Americans have been targeted by many of the scams. In 2022, in the U.S alone, victims reported losses of $2.6 billion from pig butchering – a type of long-term scam – and other crypto fraud, more than double the previous year, according to the FBI.
The Treasury report said that for more than two years the O-Smach Resort hasbeen investigated by police and publicly reported on "for extensive and systemic serious human rights abuse."
It said victimsreported being lured therewith false employment opportunities, having phones and passports confiscated upon arrival, and being forced to work scam operations.
"People who called for help reported being beaten, abused with electric shocks, made to pay a hefty ransom, or threatened with being sold to other online scam gangs," it said, adding that there had beentwo reports of victims jumping to their death from buildings within theresort.
The report said localauthorities hadconducted repeated rescue missions, including in October 2022 and March 2024, freeing victims of various nationalities, including Chinese, Indian, Indonesian, Malaysian, Singaporean, Thai, and Vietnamese.
The U.S state department said in June that Cambodian government officials were complicit in trafficking and that someofficials owned facilities used by scam operators.
Spokespeople for Cambodia's government and foreign ministry did not answer phone calls or respond to messages seeking comment when asked about the sanctions.
The U.S. and other governments have repeatedly engaged with Cambodia to put a end to the scam centers.
Washington had considered sanctions for months, sources briefed on the matter told Reuters. They said the decision was initially expected earlier this year but had been delayed.
A change of leadership to West Point-educated Hun Manet last year was seen by U.S. officials as an opportunity to mend ties with Cambodia, but despite U.S. efforts, its ties with China have steadily grown. Beijing sentwarships to Cambodiathis year and is backing the expansion of a key naval base.
Reporting by Francesco Guarascio and Poppy McPherson; additional reporting from Simon Lewis; editing by Shri Navaratnam and Deepa Babington
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
