U.S. Sanctions Karen National Army for Cyber Scams, Human Trafficking

The United States Department of the Treasury has imposed sanctions on the Karen National Army (KNA), a militia group based in Burma, along with its leader Saw Chit Thu and his two sons, Saw Htoo Eh Moo and Saw Chit Chit. The sanctions are in response to allegations that the KNA and its leaders are involved in facilitating cyber scams, human trafficking, and transnational money laundering. These activities have reportedly cost American victims billions of dollars.

The KNA, headquartered in Shwe Kokko in Burma’s Karen State along the Thai border, has been accused of transforming its territory into a hub for online scamming syndicates and smuggling networks. The group, once known as the Karen Border Guard Force, rebranded as the Karen National Army in March 2024 to distance itself from the Burmese military regime. However, U.S. officials maintain that the relationship between the KNA and the Burmese military remains intact, with the KNA continuing to profit from military cooperation as recently as September 2024.

The Treasury’s sanctions target the KNA’s expansive fraud enterprise, which operates from retrofitted casinos and hotels in KNA-controlled territory. These facilities serve as prison-like compounds for trafficked people forced to engage in scams under threat of violence. Victims-turned-perpetrators work long hours creating fake online identities to lure unsuspecting targets, primarily U.S. citizens, into cryptocurrency investment scams, known colloquially as “pig butchering.” These schemes exploit emotional vulnerabilities and induce victims to commit more funds before the scammers disappear with the money.

The KNA’s influence over these operations extends beyond logistics. Survivors from KK Park, a notorious scam compound, reported seeing security personnel in KNA uniforms, reinforcing claims that the group provided land and protection for these operations. The KNA has been accused of leasing territory to other criminal syndicates, supplying utilities for scam compounds, and facilitating human trafficking routes.

Saw Chit Thu, the leader of the KNA, has been sanctioned by the United Kingdom and the European Union for his alleged role in scam operations and cooperation with the Burmese military. Under his leadership, the KNA has become a cornerstone of the region’s scam economy. His two sons play key roles in this enterprise, with Saw Htoo Eh Moo reportedly involved in KNA-linked businesses, including cyber scam centers, and Saw Chit Chit commanding KNA battalions fighting anti-regime forces and holding directorships in businesses tied to the scam economy.

The sanctions have immediate financial consequences. Any assets held by the KNA or those named under U.S. jurisdiction are now frozen. U.S. persons are barred from conducting transactions with them, and any entities owned 50 percent or more by the designated persons are similarly blocked. Non-U.S. persons who assist or facilitate transactions on behalf of the sanctioned parties may themselves be subject to secondary sanctions.

The U.S. government seeks to curtail the operations of those directly involved in scams and trafficking and dismantle the financial infrastructures that allow such networks to thrive. The designation of the KNA as a major transnational criminal organization sends a strong message about the U.S. government's commitment to combating transnational cybercrime and human trafficking.