The United States has taken significant action against Cambodian tycoon Ly Yong Phat (also known as Ly), due to his involvement in serious human rights violations linked to illegal online gambling operations. Under the Global Magnitsky Act, sanctions have been imposed on Ly, his LYP Group Limited, and their property, O-Smach Resort, accusing them of exploiting workers through online scam centers.
The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has also listed several other properties owned or controlled by Ly under similar sanctions, including the Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel.
Details of the Sanctions and Their Impact:
According to GGRAsia, Bradley T. Smith, the Acting Deputy Secretary of the Treasury for Terrorism and Financial Intelligence, stated: "Today's actions underscore our determination to hold those involved in human trafficking and other abusive practices accountable, while also disrupting their ability to carry out investment fraud schemes targeting countless unsuspecting individuals, including Americans." This move by the U.S. government reflects a strict stance against human rights violations and the exploitation of vulnerable groups for economic gain.
A recent report released by the U.S. government specifically highlights the abuses in Cambodia, particularly in O-Smach and Koh Kong towns, where trafficked workers have suffered severe mistreatment. Investigations reveal that victims are often lured to the O-Smach Resort under the guise of employment opportunities, only to have their personal documents confiscated and forced against their will to engage in scams.
The conditions at O-Smach Resort are reported to be extremely harsh, including physical abuse such as beatings and electric shocks, as well as psychological torment through threats of being sold to other scam groups. Desperate, some victims have resorted to jumping from buildings to escape the torment.
From October 2022 to March 2024, local authorities conducted multiple rescue operations, saving victims of various nationalities, including Chinese, Indian, Indonesian, Malaysian, Singaporean, Thai, and Vietnamese. These operations highlight the international scope of the human trafficking centered around O-Smach Resort.
Responses and Ongoing Investigations:
According to an official press release from the U.S. Treasury Department, due to actions taken by OFAC on September 12, 2024, "all property and interests in property of the designated individuals that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC," along with other sanction impacts.
The U.S. State Department's latest Human Trafficking Report further clarifies the severity of the situation, noting widespread corruption and official complicity in trafficking crimes across Cambodia. The report emphasizes the challenges in combating these appalling activities and the necessity of maintaining vigilance and international cooperation.
