Askume Sep 12 – The United States is considering sanctions on prominent Cambodian figures over alleged links to a cyber fraud earlier this week, including one close to the ruling party, US officials said, citing two people briefed on the matter, including those linked to human trafficking.
The move, which has never been previously reported, comes at a delicate stage in relations between the United States and Cambodia after Phnom Penh began building a China-backed canal that would divert water from the fragile Mekong River, a plan criticized by US officials.
Cambodia is stepping up military cooperation with Beijing, which earlier this year sent warships to the Southeast Asian country and supported the expansion of a major naval base.
Two sources briefed on the matter said at least one prominent figure close to Cambodia’s top political leader was the target.
Cambodian government and foreign ministry spokesmen did not respond to calls or messages seeking comment.
A spokesman for the US Treasury Department declined to comment. The US Embassy in Phnom Penh did not respond to a request for comment.
Askume was unable to confirm the identities of the individuals targeted or what type of sanctions they would face.
The sources declined to be named because the information is not public.
The U.S. State Department said in June that Cambodian government officials were involved in human trafficking for criminal purposes and had “actively hindered countermeasures” over the past year, while some officials owned facilities used by scammers.
Billion-dollar fraud
In recent years, Cambodia and other countries in Southeast Asia have become the hub of a billion-dollar criminal industry targeting victims around the world with fraudulent cryptocurrency and other schemes, often run by Chinese crime syndicates and operated by trafficked workers.
The US and other governments have repeatedly engaged with Cambodia to stop the illegal trade.
Britain imposed financial and travel sanctions on nine people and five entities in December for their involvement in human trafficking scandals in Cambodia, Myanmar and Laos.
Washington has been considering imposing fraud-centre sanctions on Cambodia for months, two sources and three others familiar with the matter said.
Two of them said the US government had delayed the decision on the sanctions but did not explain the reason for the delay.
He said a decision was initially expected earlier this year but has been delayed.
Americans have been the target of many scams. According to the FBI, in 2022 alone, victims reported losing $2.6 billion from hog slaughter (a long-running scam) and other cryptocurrency scams, more than double the amount of the previous year.
Relations between Cambodia and the United States have been strained for years, largely due to the Southeast Asian country’s growing ties with Beijing, but last year’s leadership change in Phnom Penh was seen by US officials as an opportunity to improve relations.
Prime Minister Hun Mane, who was educated at the West Point Military Academy, replaced his long-ruling authoritarian father Hun Sen last year.
