OFAC Sanctions Cambodian Businessman, Companies for Human Rights Violations

The Office of Foreign Assets Control sanctioned Cambodian businessman Ly Yong Phat, his company L.Y.P. Group Co., LTD, and the O‑Smach Resort for their ties to serious human rights abuses, including forced labor. The agency also designated Cambodia-based Garden City Hotel, Koh Kong Resort and Phnom Penh Hotel for being owned or controlled by Ly.

OFAC said Ly, who is also a Cambodian senator, has used O‑Smach Resort to lure workers with “false employment opportunities,” taking their phones and passports upon arrival and forcing them to work “scam operations.” The agency said “people who called for help reported being beaten, abused with electric shocks, made to pay a hefty ransom, or threatened with being sold to other online scam gangs.”

New General License 8 authorizes certain transactions with any entity “that is blocked solely due to a property interest” of Ly Yong Phat, L.Y.P. Group Co. or any entity they own by 50% or more. Those transactions are authorized “provided that such entity is not identified” on OFAC’s Specially Designated Nationals and Blocked Persons list.

A new frequently asked question includes more information about the license and stresses that OFAC “will continue to closely monitor Ly's and L.Y.P. Group's activities and may designate or identify additional entities, as appropriate.”