The United States Treasury Department has imposed sanctions on Myanmar’s Karen National Army and its leadership for alleged human trafficking and cyber scam operations, while the militia group vehemently denies involvement and claims they’re actively fighting these criminal enterprises.

At a Glance

• The US has sanctioned the Karen National Army (KNA), its leader Saw Chit Thu, and his two sons for alleged involvement in cyber scams, human trafficking, and criminal protection
• Cyber scams from Southeast Asia, including Myanmar, have cost Americans approximately $3.5 billion in 2023
• The KNA, which operates in Kayin state and has ties to Myanmar’s military junta, denies all allegations
• KNA officials claim they’ve repatriated over 7,400 foreign scam workers and are actively combating criminal operations
• The UK and EU have also imposed sanctions on KNA leadership

US Treasury Takes Action Against Myanmar Militia

The US Treasury Department has targeted the Karen National Army, a militia group operating in southeastern Myanmar, with sanctions for allegedly facilitating human trafficking and online fraud operations. The sanctions specifically name KNA leader Saw Chit Thu and his two sons, freezing any US-based assets and prohibiting Americans from conducting business with them. These measures come as part of broader international efforts to combat cyber scam operations in Southeast Asia that have reportedly cost American victims billions.

The KNA operates in Myanmar’s Kayin state along the Thai border, controlling areas in Shwe Kokko and Myawaddy that have become notorious for criminal syndicates running online scams. According to US officials, the militia group has leased land to organized crime gangs and operates “scam compounds” where trafficked individuals are forced to perpetrate fraud targeting Americans and others worldwide. The sanctions highlight growing concerns about the security situation in Myanmar following the military coup in February 2021.

Criminal Operations and Regional Impact

Treasury Department officials have described the scale of the criminal enterprises allegedly protected by the KNA as substantial. Online scam operations from Southeast Asian countries including Myanmar, Cambodia, and Laos have reportedly cost Americans approximately $3.5 billion in 2023 alone. The United Nations has warned about the expansion of criminal gangs exploiting trafficked workers under abusive conditions throughout the region, with numerous victims forced to participate in sophisticated fraud schemes.

“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 amid ongoing political instability in Myanmar, where the military junta recently extended a ceasefire with armed rebel groups to assist with earthquake recovery efforts. The KNA’s leader, Saw Chit Thu, maintains close ties with Myanmar’s military rulers and was reportedly honored by junta chief General Min Aung Hlaing in 2022. The UK and European Union have also imposed their own sanctions on the KNA leadership, indicating coordinated international pressure.

KNA Denies Allegations

Representatives of the Karen National Army have strongly denied the allegations, expressing confusion over the sanctions. KNA spokesperson Naing Maung Zaw insists the group is actively working to combat scam centers and repatriate victims to their home countries. According to the KNA, they have already repatriated 7,454 of 8,575 foreign scam workers through Thailand, with more than 10,000 people still to be identified in KNA-controlled areas.

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

The KNA, which operates as the Karen ethnic minority’s official Border Guard Force, claims their activities focus on regional development rather than criminal enterprises. Lt. Col. Naing Maung Zaw has dismissed the sanctions, stating they “will not affect us in any way” and suggesting the US is acting arbitrarily. The militia group’s territory in Kayin state has experienced intense conflict since Myanmar’s military coup, complicating efforts to verify claims from either side regarding criminal activities in the region.