OFAC sanctions Burma’s DKBA, linked firms over cyber scam centers

The Treasury Department’s Office of Foreign Assets Control designated the Democratic Karen Benevolent Army (DKBA), described as a Burmese armed group, along with four of its senior leaders, for supporting cyber scam centers in Burma that target Americans using fraudulent investment schemes.

OFAC also designated Trans Asia International Holding Group Thailand Company Limited (Trans Asia), Troth Star Company Limited (Troth Star), and Thai national Chamu Sawang, who Treasury said are linked to Chinese organized crime and have worked with the DKBA and other armed groups to develop scam centers.

Treasury said the revenue generated by these scam centers supports organized crime and enables the DKBA to finance its activities. Treasury also said scam center workers are often victims of human trafficking.

Treasury said the action was taken in collaboration with the Federal Bureau of Investigation’s San Diego field office, the U.S. attorney’s office for the District of Columbia, the Justice Department’s Criminal Division, the U.S. Secret Service and the Drug Enforcement Administration.

According to the Treasury release, the U.S. attorney for the District of Columbia, together with DOJ’s Criminal Division, the FBI and the Secret Service, also announced the establishment of a Scam Center Strike Force focused on investigating, disrupting and prosecuting major Southeast Asian scam centers and their leaders, with a focus on Burma, Cambodia and Laos.

Treasury’s release cited the Tai Chang compound near Myawaddy in Burma’s Karen State as having housed cyber scam operations that targeted Americans. Treasury said the compound is located in territory controlled by the DKBA, and that it was founded by DKBA senior leader Sai Kyaw Hla and Trans Asia, which Treasury described as a Thailand-based front for China-based transnational criminal organizations.

Treasury said Trans Asia entered into land lease contracts with other entities, including the previously OFAC-designated Karen National Army and Troth Star, to develop other scam compounds, including the Huanya compound and KK Park, both in Myawaddy.

OFAC said it designated Trans Asia, Troth Star, the DKBA and Sai Kyaw Hla under Executive Order 13694, as amended, and also designated those parties under Executive Order 14014.

Treasury identified Saw Steel as the DKBA commander-in-chief, Saw Sein Win as the DKBA adjutant general, and Saw San Aung as the DKBA chief of staff. Treasury said Chamu Sawang, also known as Yu Jianjun, is the director of Trans Asia.