Treasury’s Office of Foreign Assets Control (OFAC) today designated the Karen National Army (KNA), a Burmese militia group, as a transnational criminal organization under Executive Order (E.O.) 13581, as amended. OFAC also sanctioned KNA leader Saw Chit Thu and his sons, Saw Htoo Eh Moo and Saw Chit Chit, under E.O. 13581 and E.O. 14014 for their roles in cyber scam operations, human trafficking, and cross-border smuggling that have harmed U.S. citizens.
“The KNA’s scam operations generate billions in revenue for criminal kingpins and their associates, while depriving victims of their hard-earned savings and sense of security,” said Deputy Treasury Secretary Michael Faulkender. “Treasury is committed to using all available tools to disrupt these networks.”
The KNA is based in Shwe Kokko, a territory along the Thai-Burmese border in Karen State, where it operates with support from Burma’s military. The region has become a haven for cyber scam syndicates, many of which run large-scale “pig butchering” scams—virtual currency fraud schemes that rely on prolonged psychological manipulation. These scams have caused significant financial losses among American victims, estimated at over $2 billion in 2022 and $3.5 billion in 2023.
The sanctions follow a broader effort by the U.S. government to disrupt Southeast Asia-based cybercrime networks. On May 1, the Financial Crimes Enforcement Network (FinCEN) identified Cambodia’s Huione Group as a primary money laundering concern under Section 311 of the USA PATRIOT Act. In 2024 and 2023, OFAC issued sanctions and alerts targeting individuals and businesses involved in human trafficking and scam operations in Cambodia and Laos.
OFAC noted that KNA’s criminal operations have flourished through its leasing of land to criminal syndicates, sale of utilities to scam compounds, and provision of armed security—activities that directly support the region’s illicit economy. Survivors from scam compounds, including the notorious KK Park complex, have reported KNA insignia on the uniforms of armed guards.
The KNA, formerly known as the Karen Border Guard Force (BGF), was created in 2009 after a faction of the Democratic Karen Benevolent Army (DKBA) integrated into the Burmese military command structure. While the group rebranded as the Karen National Army in March 2024, reportedly to distance itself from Burma’s military junta, evidence indicates that KNA has maintained ties to military authorities, including cooperation as recently as September 2024.
Saw Chit Thu, a former BGF commander, has emerged as a central figure in Burma’s scam economy. He was previously sanctioned by the United Kingdom (2023) and European Union (2024). His sons, Saw Htoo Eh Moo and Saw Chit Chit, hold key roles in the KNA. The former is linked to KNA business ventures, including scam centers; the latter remains militarily active and holds shares in KNA-affiliated firms.
The U.S. government’s action freezes all assets of the designated individuals and entities under U.S. jurisdiction and prohibits U.S. persons from conducting transactions with them. Entities 50% or more owned by sanctioned parties are also blocked.
The Treasury Department emphasized that individuals and entities engaging with the KNA or its leadership risk exposure to U.S. sanctions and enforcement actions. OFAC reiterated that its sanctions aim not only to disrupt illicit conduct but also to induce behavioral change. Procedures for removal from the Specially Designated Nationals and Blocked Persons (SDN) List are outlined on OFAC’s website.
The Karen conflict is one of the world’s longest-running civil wars. Since 1949, Karen armed groups—including the Karen National Union (KNU) and its military wing, the Karen National Liberation Army (KNLA)—have fought successive Burmese governments for greater autonomy. The KNA (formerly BGF) split from the KNLA and aligned with the Tatmadaw (Burmese military) in 2009. This alliance allowed the KNA to secure territorial control and establish a parallel governance and economic structure along the border. Tensions between KNA and other Karen factions persist, particularly over the exploitation of borderland resources and cooperation with the junta.
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