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
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
