The United States has taken significant action against Cambodian tycoon Ly Yong Phat (Ly). imposing sanctions for his involvement in serious human rights abuses linked to illegal online gambling operations. The sanctions, which were applied under the Global Magnitsky Act, target Ly, his L.Y.P. Group Co., Ltd, and his property O-Smach Resort, accusing them of exploiting trafficked workers in online scam centers.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has also named several other properties owned or controlled by Ly, including the Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel, under similar sanctions.
Details of the sanctions and their implications:
As GGRAsia reports, Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, stated, “Today’s action underscores our commitment to hold accountable those involved in human trafficking and other abuses, while also disrupting their ability to operate investment fraud schemes that target countless unsuspecting individuals, including Americans.” This move by the U.S. government reflects a stern stance against human rights violations and the exploitation of vulnerable individuals for financial gain.
A recent report by the U.S. government highlighted specific abuses in Cambodia, particularly in the towns of O’Smach and Ko Kong, where trafficked workers were subjected to severe mistreatment. Investigations have revealed that victims were often lured to O-Smach Resort under the guise of employment opportunities, only to have their personal documents seized and forced into scam operations against their will.
The conditions at O-Smach Resort were dire, with reports of physical abuse, including beatings and electric shocks, and psychological torment through threats of being sold to other scam operations. Some victims reportedly faced such despair that they resorted to jumping from buildings to escape the torment.
From October 2022 to March 2024, several rescue operations conducted by local authorities freed victims of various nationalities, including Chinese, Indian, Indonesian, Malaysian, Singaporean, Thai, and Vietnamese. These actions highlighted the international scope of the human trafficking operations centered at O-Smach Resort.
Response and ongoing investigations:
According to the official press release from the U.S. Department of the Treasury, as a result of the actions taken by the OFAC on Sept. 12, 2024, …”all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC,” as well as other sanctions implications.
The U.S. Department of State’s latest Trafficking in Persons Report further illuminates the gravity of the situation, noting widespread corruption and official complicity in trafficking crimes across Cambodia. This report underscores the challenges faced in combating these heinous activities and the need for continued vigilance and international cooperation.