The United States has imposed treasury sanctions on prominent tycoon Ly Yong Phat by “blocking all properties and interests” in the U.S owing to his alleged role in “serious human trafficking, online investment scam operation”.
A U.S Department of the Treasury’s Office of Foreign Assets Control (OFAC) press release on September 12 indicated that the sanction on Yong Phat, his conglomerate L.Y.P Group Ltd and O’Smach Resort was issues due to their participation in serious human rights abuse relating to the treatment of trafficked workers and forced labor in online scam centers.
OFAC also identified four Cambodian hotels belonging to the tycoon, including Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel.
“As a result of the sanction, all property and interest in property of the designated persons in the U.S or the possession or control of U.S persons are blocked and must be reported to OFAC,” the statement read.
“[The] sanction underscores our commitment to hold accountable those involved in human trafficking and other abuses,” the press acting under secretary of the Treasury for Teerorism and Financial Intelligence Bradley T. Smith said.
The sanctions also disrupt the ability to operate investment fraud schemes that target countless unsuspecting individuals, including Amercians. ”The treasury will continue to shine a light on the criminal networks operating these illicit schemes and those who seek to ‘perpetrate these abuses’,” he said.
The U.S Treasury underlined a scam operation compound at O’Smach resort to rescue victims of various nationalities, like Chinese, Indian, Indonesia, Malaysian, Singaporean, Thai and Vietnamese.
The Federal Bureau of Investigation Internet Crime Report, IC3, reported in 2023, that investment scam fraud losers from investment rose from $3.31 billion in 2022 to $4.57 billion in 2023.
Yong Phat allegedly cut the line following attempts by CamboJA News to obtain his comment.
On Friday, Cambodia’s Foreign Affairs and International Cooperation Ministry expressed “deep regret over the unjust decision” in response to the U.S sanction on Yong Phat.
“To claim that Cambodia has been indifferent or was negligent in enforcing the law is a gross misrepresentation of our efforts and achievement to tackle these complex, transnational challenges,” the ministry said in a statement.
The ruling CPP also issued a statement echoing the ministry, saying that the sanction was a “baseless and unfair allegation” particularly relating to forced labor and cyber crime, which has a political nature to impact efforts to improve bilateral relations.
It said Yong Phat, a permanent member of the CPP Central Committee has significantly contributed to the development of infrastructure, jobs and enhancing the lives of Cambodians.
Interior Ministry’s National Committee for Counter Trafficking vice president Chou Bun Eng said she “was not aware” of the sanctions on the tycoon but mentioned that Cambodia has made strides in fighting human trafficking issues.
“I don’t know [about the sanctions] please ask law experts because it involves the law,” she said.
Cambodia is no different from other countries in these situations, such as online scams where “perpetrators showed their ill-intention”.
“Do not focus only on Cambodia because it [scam operations] continues to happen in other countries, so Cambodia faces a challenge,” Bun Eng said.
In 2019, several tycoons were sanctioned, for instance, Kun Kim, a former chief of joint staff of RCAF, and the current first vice president of the National Committee of Disaster Management for his alleged involvement in corruption.
Tycoon Try Pheap was also sanctioned for allegedly overseeing a large-scale illoging. A commanding bodyguard of former Prime Minister Hun Sen, Hing Bun Heang, was accused in serious human rights abuse where military force used to menace opposition for decades.
Pa Chanroeun, president of the Cambodian Institute for Democracy (CID), told CamboJA News that the sanctions on the freezing of any individual property in the U.S were in accordance with the law on the fight against human rights abuses in any country, including Cambodia.
“For Cambodia, economic sanctions on such individuals, whether they affect the interests of individuals more or less, always affect the honor and dignity of society and the country as a whole,” he said.
Chanroeun shared that the freezing of assets encourages senior officials in Cambodia, big businesses, and investors in Cambodia to pay close attention to human rights and democracy because, in the past, people said democracy did not work.
“Now and in future, Cambodia needs to do business with international partners, especially the U.S, European Union, and other developed countries, so that we can do business with them closely and with high benefits,” Chanroeun said. “We stand by their values and principles, which include respect for human rights and democratic principles.”
NGO rights group Licadho operations director Am Sam Ath opined that the freezing of assets was because the U.S possessed a law to punish those involved in human rights abuses, trafficking, and other issues.
“The freezing of the assets is not unusual from what was done in the past; normally, when freezing someone’s or the assets of a big businessman in a country, it always has an impact on overseas financial flow, and trade and business contacts with countries around the world,” he said.
