The United States Treasury has announced new sanctions on organized crime in Myanmar and Thailand, and the establishment of a multi-agency “strike force” to combat scam centres in Southeast Asia.

In a statement released on November 12, the Treasury's Office of Foreign Assets Control designated Myanmar’s Democratic Karen Benevolent Army ( DKBA ) and four of its leaders for supporting cyber scam centres in Myanmar.

The office is also designating Trans Asia International Holding Group Thailand, Troth Star, and Thai national Chamu Sawang, who are linked to Chinese organized crime, for working with the DKBA and other armed groups to develop scam centres. 

“Criminal networks operating out of [Myanmar] are stealing billions of dollars from hardworking Americans through online scams,” says John Hurley, the Treasury undersecretary for terrorism and financial intelligence.

“These same networks traffic human beings and help fuel [Myanmar’s] brutal civil war,” he says. “The administration will keep using every tool we have to go after these cybercriminals – wherever they operate – and to protect American families from their exploitation.”

The Treasury identifies one Myanmar scam centre as Taichang Park near Myawaddy in Karen State, allegedly founded by DKBA brigadier-general Sai Kyaw Hla and Trans Asia, which is based across the border in the Thai city of Mae Sot. Trans Asia has also entered into land lease contracts to develop other scam compounds, it says.

According to a recent US government estimate, Americans lost at least US$10 billion to Southeast Asian scams last year – up two-thirds from 2023.

Scam Centre Strike Force

The Treasury says government agencies have set up a “Scam Centre Strike Force … to investigate, disrupt, and prosecute the most egregious Southeast Asian scam centres and their leaders, with a focus on [Myanmar], Cambodia, and Laos.”

The strike force aims to carry out sanctions, seizures, and criminal prosecutions while securing US infrastructure against scam use and supporting American victims, it says.

Government agencies involved in the strike force include the US attorney for the District of Columbia, the Department of Justice, the Federal Bureau of Investigation, and the US Secret Service, as well as the State Department and the Office of Foreign Assets Control.

According to a map released by the Treasury, the Taichang Park scam compound is located south of KK Park, which Myanmar authorities are in the process of dismantling.

KK Park comprises 635 buildings, of which 110 have already been demolished, the Global New Light of  Myanmar reported the same day as the Treasury announcement.

“The government is strictly cracking down on online scams and online gambling by cooperating with other countries, including neighbouring countries,” according to the newspaper.

Photo: Smoke billows from the KK Park compound in Myanmar, near the Thai border, after explosions during a local military operation targeting alleged scam centres.