U.S. SANCTIONS – Military Group Targeted!

The U.S. Treasury Department has imposed sanctions on a Myanmar militia group accused of running cyber scam operations that have defrauded Americans of billions, while the targeted group claims they’re actually fighting these criminal enterprises.

At a Glance

• The U.S. has sanctioned the Karen National Army (KNA) and its leader Saw Chit Thu for alleged involvement in cyber scams, smuggling, and human trafficking
• The KNA is accused of leasing land to organized crime gangs and running “scam compounds” that targeted Americans, costing victims approximately $3.5 billion in 2023
• KNA leadership denies involvement, claiming they are working to combat scam centers and have repatriated over 7,400 foreign scam workers
• The sanctions freeze any U.S. assets held by the KNA and prohibit Americans from conducting business with the group
• The militia group operates in southeast Myanmar’s Kayin state and maintains close ties with the military junta that took power in a 2021 coup

Treasury Department Takes Action Against Myanmar Militia

The U.S. Treasury Department has targeted the Karen National Army (KNA), a Myanmar militia group operating in the southeastern Kayin state, with economic sanctions due to alleged involvement in cyber scams, human trafficking, and smuggling operations. The sanctions specifically name the KNA, its leader Colonel Saw Chit Thu, and his two sons. This action freezes any U.S.-based assets belonging to the sanctioned entities and individuals while prohibiting Americans from conducting business with them, effectively cutting off their access to the U.S. financial system.

According to Treasury officials, the KNA has facilitated extensive criminal operations by leasing land to organized crime syndicates and directly operating “scam compounds” where trafficked workers are forced to perpetrate online fraud schemes targeting Americans. These operations are part of a broader pattern of cyber scams originating from Southeast Asia that have cost American victims approximately $3.5 billion in 2023 alone. The KNA controls strategic border areas in Shwe Kokko and Myawaddy, regions known as hotspots for criminal activities.

Militia’s Relationship with Myanmar’s Military Junta

The KNA serves as the official Border Guard Force for the Karen ethnic minority and maintains close ties with Myanmar’s military rulers who seized power in a February 2021 coup. Colonel Saw Chit Thu, the KNA’s leader, was personally honored by junta chief General Min Aung Hlaing in 2022, highlighting the relationship between the militia and Myanmar’s current government. This connection raises concerns about state-sanctioned criminal activities in a region already destabilized by ongoing conflicts following the military takeover.

“Cyber scam operations such as those run by the KNA generate billions in revenue for criminal kingpins and their associates, while depriving victims of their hard-earned savings and sense of security”, said Deputy Secretary Michael Faulkender. 

The sanctions come at a time when the military junta has extended a ceasefire with armed rebel groups to assist with earthquake recovery efforts in the region. The United Kingdom and European Union have also imposed similar sanctions on Saw Chit Thu, indicating coordinated international pressure against the KNA’s leadership. These sanctions represent the latest in a series of measures targeting Myanmar’s military leaders and associated entities since the 2021 coup.

KNA Denies Allegations and Claims Anti-Scam Efforts

KNA spokesperson Lieutenant Colonel Naing Maung Zaw has expressed confusion over the sanctions, vehemently denying the group’s involvement in the alleged criminal activities. According to Zaw, the KNA has actually been working to combat scam centers and repatriate victims to their home countries. He claimed the sanctions “will not affect us in any way” while questioning the basis for the U.S. action against the group.

“I really cannot understand why this happened when we … are working to crack down on scam centres and repatriate victims to their respective countries”, said Naing Maung Zaw. 

The KNA claims to have already repatriated 7,454 of 8,575 foreign scam workers through Thailand, with efforts ongoing to identify and assist more than 10,000 additional people in KNA-controlled areas. Critics, however, accuse the group of providing protection to these criminal operations rather than eliminating them. The situation highlights the complex dynamics of governance, criminality, and ethnic militias in a region that has experienced intense conflict since Myanmar’s military seized power.