The U.S. government has imposed sanctions on Myanmar’s Karen National Army (KNA), citing involvement in online scams, human trafficking, and cross-border smuggling. As part of these sanctions, the militia, its supporters, and connected assets are prohibited from engaging in transactions with American individuals, both within the U.S. and those transiting through it.
The directive specifically targets the KNA’s leader, Saw Chit Thu, along with his sons, Saw Htoo Eh Moo and Saw Chit Chit, who have been implicated in the criminal activities. The sanctions were enacted under Executive Order (EO) 13581, which addresses transnational criminal organizations and their associates, and EO 14014, aimed at individuals deemed a threat to the peace, security, and stability of Burma.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) stated that the listed offenses pose significant risks to U.S. citizens. Recent investigations have revealed that scam operations similar to those conducted by the KNA have resulted in billions of dollars in financial losses for American victims. The Treasury’s findings indicate that U.S. citizens suffered losses of over $2 billion in 2022, with that number escalating to $3.5 billion in 2023 due to increasingly sophisticated cyber scams originating from Burma and other Southeast Asian nations.
Historically, the KNA served as Myanmar’s Border Guard Force before rebranding itself in March 2024 in an effort to distance from the military regime. Nonetheless, the group has maintained cooperation with the official armed forces of Myanmar since September 2024. The KNA’s fraudulent activities have reportedly expanded on an industrial scale, operating from leased lands owned by other criminal syndicates.
OFAC has characterized the KNA’s scams as complex and prolonged, often involving the manipulation of vulnerable individuals. Victims are typically lured into prison-like call centers or converted hotels and casinos, where they are coerced through threats of violence or humiliation. Initially, scammers exploit victims’ emotional vulnerabilities, such as recent personal losses or financial difficulties, sometimes utilizing attractive models to gain their trust through video calls.
The deceptive practices employed by the KNA include enticing victims with the false promise of a lavish lifestyle, leading them to invest in fraudulent cryptocurrency and trading platforms controlled by the scammers. These individuals are shown fabricated returns on their investments that coax them into investing larger sums of money, only for the scammers to disappear with their assets once they have drained their resources.
