The US Treasury Department imposed financial and diplomatic sanctions on individuals and organizations in Myanmar and Cambodia on September 8th. "The online scam industry in Southeast Asia not only threatens the lives and financial security of Americans, but also forces thousands of people into modern slavery," said Deputy Treasury Secretary John K. Hurley.

Among the 9 individuals and organizations sanctioned in Myanmar are Tin Win, Saw Min Min Oo, and the Chit Linn Myaing company. They are accused of representing the Karen National Army (KNA) militia, which allegedly protects large-scale online scam operations in the Myawaddy border region.

The KNA, led by Saw Chit Thu, controls the border area near Myawaddy in Karen state. This region, where the group has held power for years, is considered the base for online scam gangs in Myanmar.

In May, the US Treasury Department's Office of Foreign Assets Control (OFAC) sanctioned Saw Chit Thu and his two sons, Saw Htoo Eh Moo and Saw Chit Chit. They were targeted for their alleged role in "facilitating online scams that harm American citizens," as well as human trafficking and cross-border smuggling. OFAC also designated the KNA as a Transnational Criminal Organization (TCO).

In recent years, Myanmar has become a hotspot for human trafficking due to complex security issues stemming from the conflict between the government military and militia groups. This allows gangs to operate with impunity.

Myawaddy, along the border with Thailand, has emerged as an online scam empire under the alleged protection of Saw Chit Thu. He has spent decades building a network of economic and military interests throughout the border region.

Saw Chit Thu, leader of the BGF militia that controls Myawaddy in Myanmar. Photo: Karen News

Saw Chit Thu, leader of the BGF militia that controls Myawaddy in Myanmar. Photo: Karen News

Saw Chit Thu was a "colonel" in the predominantly Catholic Karen National Union (KNU) militia, which controlled Karen state on the Myanmar-Thailand border for decades.

In 1994, a Buddhist faction split from the KNU to form the Democratic Karen Buddhist Army (DKBA). Saw Chit Thu joined the DKBA and allied with the Myanmar military against his former comrades. A year later, he led the DKBA in capturing Kawmoora, a key KNU stronghold.

Capturing Kawmoora gave Saw Chit Thu control over timber exploitation and smuggling along the Moei River, particularly in Shwe Kokko, Myawaddy. This marked a turning point in his rise to power as a militia leader.

In 2010, Myanmar army chief Min Aung Hlaing pressured Saw Chit Thu to merge the DKBA into the government military as the Border Guard Force (BGF). Min Aung Hlaing then gave Saw Chit Thu and the BGF control of the Myanmar-Thailand border region, centered around Myawaddy.

Myawaddy is crucial to Myanmar's economy. The Ministry of Commerce estimated trade through Myawaddy between April 2023 and April 2024 at 1.1 billion USD.

Saw Chit Thu is accused of leveraging his command of the BGF to control Myawaddy's lucrative black market, allegedly protecting gambling and cross-border smuggling operations.

Location of Myawaddy in Karen state (dark orange) in Myanmar. Source: Nikkei

Location of Myawaddy in Karen state (dark orange) in Myanmar. Source: Nikkei

In 2017, Chinese investors arrived in the area and secured rights to develop Swe Kokko New City. This project promised to transform the timber and livestock trading hub into a major business center.

Between 2017 and 2019, the BGF allied with She Zhijiang, head of the Hong Kong-based Yatai International Holding Group, and Wan Kuok Koi (also known as "Broken Tooth"), a former triad leader.

Instead of becoming a business center, Shwe Kokko, later renamed KK Park, became a hub for casinos and online scam operations.

The US sanctioned Wan Kuok Koi in late 2020, and Thai police arrested She Zhijiang in 2022. According to a USIP investigation, this allowed the BGF to consolidate control over its vast business empire in the region.

In December 2023, the UK government sanctioned Saw Chit Thu for alleged involvement in human trafficking and forced labor in scam centers.

In April 2024, the KNU attacked Myawaddy, pushing the Myanmar military and the BGF out of this strategic area. Saw Chit Thu reportedly remained neutral to maintain an escape route.

After two weeks of fighting, Saw Chit Thu allegedly brokered a deal where the KNU withdrew from Myawaddy, giving his BGF control of the region.

Saw Chit Thu (right) and She Zhijiang (center) at a charity event in Myawaddy, Myanmar. Photo: BP

Saw Chit Thu (right) and She Zhijiang (center) at a charity event in Myawaddy, Myanmar. Photo: BP

Since then, according to Chinese and Thai media, the Myawaddy underworld, including human trafficking and smuggling operations, has been controlled by the "three Saws": Saw Chit Thu, Lieutenant Colonel Saw Mote Thon, and Major Saw Tin Win, who command over 10,000 troops.

Thai security officials understand that cracking down on human trafficking and online scam gangs in Myawaddy means confronting Saw Chit Thu's forces. In February 2025, Thailand's Department of Special Investigation (DSI) announced its intention to arrest Saw Chit Thu for human trafficking.

Under pressure from China and Thailand, Saw Chit Thu's forces recently launched a crackdown on online scam gangs in KK Park and Shwe Kokko, rescuing 7,000 people, with the goal of "eradicating all scam operations from the area."

On July 20th, Saw Chit Thu officially renamed the BGF to KNA, claiming it was to "ensure peace and stability" in Karen state.

However, according to Rangsiman Rome, chairman of the Thai parliament's National Security and Border Affairs Committee, online scam dens in Myawaddy continue to operate with an estimated 300,000 participants. "This shows that the scam empire still exists there, we have only shaken them," Rangsiman said.

Duc Trung (Source: Nation Thailand, Bangkok Post, Reuters, Huxin)