US, UK Sanctions Southeast Asian Scam Networks
The U.S. and the U.K. this week sanctioned a range of people and entities that they said are involved in criminal networks that carry out online investment scams and launder stolen funds. The designations target networks in Southeast Asia, including the Cambodia-based Prince Group Transnational Criminal Organization, which is led by Cambodian national Chen Zhi and operates a “transnational criminal empire” through online scams targeting Americans and others.
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The Office of Foreign Assets Control said it targeted 146 parties with ties to the group, including a luxury hotel and casino, a bitcoin mining company and many people working as part of the scheme. The U.K. sanctioned Chen Zhi, his associates and related entities as well. It also has “frozen” a multimillion-dollar mansion in North London that it said is owned by a “multi-national network responsible for using forced labour to conduct online scams.”
OFAC also issued new General License No. 1 to authorize certain transactions with some of the newly sanctioned entities, including the Prince Holding Group, Prince Bank Plc and Prince Huan Yu Real Estate Cambodia Group Co. Ltd.
In addition, the Treasury Department’s Financial Crimes Enforcement Network is preparing to issue a final rule that it said will sever Huione Group -- a Cambodia-based financial services conglomerate -- from the U.S. financial system. FinCEN said Huione Group helped launder money earned from “cyber heists” carried out by North Korea and supported transnational criminal groups in Southeast Asia perpetrating virtual currency scams, “commonly known as ‘pig butchering’ scams.”
Under the rule, certain U.S. financial institutions will be blocked from opening or maintaining a correspondent account for or on behalf of Huione Group. The rule also requires financial institutions to “apply special due diligence to their foreign correspondent accounts that is reasonably designed to guard against the use of such accounts to process transactions involving Huione Group,” FinCEN said.
The new requirements will take effect 30 days after the rule is published in the Federal Register.