The US Department of the Treasury’s Office of Foreign Assets Control issued sanctions on Thursday against Cambodian entrepreneur and senator Ly Yong Phat, for his "role in serious human rights abuse related to the treatment of trafficked workers subjected to forced labor in online scam centers."
The Office alleged that Ly owns a conglomerate called L.Y.P. Group that in turn owns O Smach Resort.
The resort is believed to be a forced labor camp run by cyber scammers who promote scams that have seen victims defrauded after making what they were told would be lucrative investments in cryptocurrency or foreign exchange schemes.
Forced laborers promote the schemes, under duress.
"Victims reported being lured to O Smach Resort with false employment opportunities, having their phones and passports confiscated upon arrival, and being forced to work scam operations," Treasury's announcement states. "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. There have been two reports of victims jumping to their death from buildings within O Smach Resort."
Cambodian authorities have conducted rescue missions at the resort, "freeing victims of various nationalities, including Chinese, Indian, Indonesian, Malaysian, Singaporean, Thai, and Vietnamese."
The sanctions mean any assets Ly holds in the US must be reported to the Office, and US persons can't do business with the Cambodian senator without permission. Financial institutions that work with Ly or entities he controls risk fines or other US government action.
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Cambodia is a known hotspot for forced labor cyber scam operators. So is the Philippines, where authorities recently freed 875 people from a romance scam compound.
The camps have even become a diplomatic concern. Myanmar, where a governance breakdown followed a military coup, has seen scam gangs set up in areas where law enforcement authorities are scarce – often hear the Chinese border.
Chinese citizens are reportedly among those enslaved in the camps.
Some scam gangs have diversified into running illegal casinos that target Chinese gamblers unable to have a flutter at home due to a crackdown on games of chance.
Beijing is not happy about scam gangs targeting its citizens, leading to strained relations with Myanmar. ®