Cambodia Criticizes US Sanctions on Tycoon as Unjust and Politically Motivated, Reports Reuters

By Poppy McPherson

Cambodia’s foreign ministry expressed strong disapproval on Friday regarding a U.S. decision to impose sanctions against a local tycoon and senator due to alleged involvement in human trafficking linked to scam operations. The ministry characterized the sanctions as politically motivated.

The U.S. announcement of the sanctions, reported by media outlets, comes at a sensitive time for Cambodia’s international relations. As the country increasingly aligns itself with China, the U.S. is attempting to engage with its new leader, Hun Manet, who is the son of former Prime Minister Hun Sen.

In a statement, the Cambodian foreign ministry stated that such unilateral sanctions undermine international law and the fundamental principles governing relations between states, specifically highlighting the principles of sovereign equality and non-interference.

The sanctions specifically target tycoon Ly Yong Phat, who was appointed a personal advisor to Hun Sen in 2022. Hun Sen held the prime minister position for nearly 40 years and remains active in politics as president of the Senate.

The sanction measures affect Ly’s L.Y.P Group Co. conglomerate and O-Smach Resort, as well as other establishments like Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel, which are reportedly owned or controlled by him.

L.Y.P Group has not provided any immediate response to inquiries.

Bradley Smith, the Treasury’s acting under secretary for terrorism and financial intelligence, stated that the purpose of the sanctions is to hold accountable those involved in human trafficking and related abuses, while also disrupting operations tied to investment fraud schemes, which adversely affect many individuals, including Americans.

In recent years, Cambodia and several Southeast Asian nations have become hotspots for a multibillion-dollar criminal industry focused on defrauding victims worldwide through various scams, often operating from secure locations run by Chinese crime syndicates and employing trafficked labor.

Jacob Sims, a Southeast Asia-based analyst specializing in transnational crime and human rights, noted that these sanctions convey a message from the U.S. government that forced scams have escalated to a significant national security issue.