The United States escalated pressure on Myanmar’s shadow economy on Monday by imposing sweeping sanctions on a notorious warlord, his two sons, and the militia he leads, citing their central role in global online scam operations, human trafficking, and cross-border smuggling.
The U.S. Treasury Department announced sanctions targeting Saw Chit Thu, the commander of the Karen National Army (KNA), a militia operating from Myanmar’s Shwe Kokko region near the Thai border. His sons, Saw Htoo Eh Moo and Saw Chit Chit, were also blacklisted, along with the militia itself. All assets they may hold under U.S. jurisdiction are now frozen, and Americans are barred from conducting business with them.
"Cyber scam operations, such as those run by the KNA, 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.
The U.S. action underscores a widening concern over Myanmar’s descent into lawlessness since the military coup in 2021. The collapse of governance in large swaths of the country has opened space for warlords, ethnic militias, and transnational crime networks to flourish — often with the complicity or direct support of the junta.
The KNA operates in Shwe Kokko, a so-called "Special Economic Zone" turned crime haven where thousands of trafficked individuals, many from neighboring countries, are forced into digital fraud operations. According to the United Nations, these scam centers have exploited hundreds of thousands across Southeast Asia.
Critically, Saw Chit Thu's influence is not merely criminal but also political. In November 2022, he received an honorary title from junta leader Gen. Min Aung Hlaing for "outstanding performance," suggesting a cooperative relationship between criminal militias and Myanmar’s embattled military regime.
The new U.S. sanctions add to mounting international pressure. Both the European Union and United Kingdom had earlier sanctioned Saw Chit Thu over his role in the illicit operations. Monday’s measures, however, mark the first Myanmar-related U.S. sanctions since President Donald Trump took office in January 2025 — a notable resumption of punitive action after a period of foreign policy uncertainty.
These developments come as Myanmar teeters under the weight of an escalating civil war, a shattered economy, and intensifying humanitarian crises. With the military losing ground in multiple regions to resistance forces, observers warn that illicit revenue streams — including cyber fraud and trafficking — are becoming lifelines for both the junta and rogue militias.
Adding to this web of illicit finance, the Treasury’s Financial Crimes Enforcement Network last week moved to bar Cambodia’s Huione Group from the U.S. financial system, citing its alleged role in laundering proceeds from regional scam operations.
“This is not just a criminal problem — it’s a geopolitical one,” said a Southeast Asia analyst with Human Rights Watch. “Militias like the KNA are fusing crime, violence, and authoritarian support. The people of Myanmar are suffering from war, repression, and now transnational exploitation on an industrial scale.”
The KNA and Saw Chit Thu have not responded to the allegations.
As Myanmar's civilian resistance and ethnic groups continue battling for autonomy and survival, international focus is turning increasingly to the murky alliances between war profiteers and military elites. Monday’s sanctions may be just the beginning of a broader crackdown.
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