OFAC sanctions Karen National Army and Saw Chit Thu

On May 5, the U.S. Department of the Treasury sanctioned the Karen National Army (KNA), its leader Saw Chit Thu, and his two sons, Saw Htoo Eh Moo and Saw Chit Chit, for their involvement in facilitating cyber scams. The sanctions were imposed under Executive Order (E.O.) 13581, as amended by E.O. 13863, targeting transnational criminal organizations and their enablers, as well as E.O. 14014, focusing on those threatening the peace, security, and stability of Burma. According to the Office of Foreign Assets Control, the KNA was sanctioned for providing security and leasing land to scam syndicates in the region.  

The KNA, reportedly composed of over 10,000 troops, operates primarily in Myawaddy Township near the Thai-Myanmar border and has been allied with the army since 2009 as the Karen Border Guard Force (BGF). It is headquartered in Shwe Kokko, a hub of trading and organized crimes such as gambling, human trafficking, and cyber scams. In January 2024, following a series of resistance victories against the Myanmar military during Operation 1027, Saw Chit Thu rebranded the Border Guard Force (BGF) as the KNA, under the pretext of distancing his group from the Myanmar military. However, after Myawaddy fell to resistance forces in April 2024, the KNA rejoined the SAC, facilitating the town’s return to military control.  

In February 2025, following the regional outcry over a high-profile human trafficking case involving a Chinese actor Wang Xing, and subsequent pressure from Beijing, Thailand’s Department of Special Investigation (DSI) announced plans to seek arrest warrants for Saw Chit Thu and his associates though the case seems to remain on hold. In response, Saw Chit Thu launched a "special task force" led by himself to purportedly “eliminate and suppress cyber scam networks”, widely seen as a desperate attempt to ease growing pressure.  

Business Network 

According to Justice for Myanmar (JFM), the following is the list of the Saw Chit Thu’s KNA companies:  

• Chit Linn Myaing Toyota Company Limited 
   
• Chit Linn Myaing Mining & Industry Company Limited 
   
• Chit Linn Myaing Energy Company Limited 
   
• Myanmar Apolo International Investment Company Limited 
   
• Myanmar Yatai International Holding Group Company Limited 
   
• Shwe Myint Thaung Yinn Holdings Limited 
   
• Shwe Myint Thaung Yinn Industry & Manufacturing Company Limited 
   

• Yulong Bay Resort Tourism Development Company Limited 

Many of Saw Chit’s business concessions were awarded to him by the Myanmar military in 2010, and the SAC continues to have close ties to the companies today. In return, a significant portion of Shwe Kokko’s annual revenue is transferred to the military, with approximately half of the town’s US$192 million in revenue being passed on in 2024.  

Further, each BGF (now KNA) battalion previously held shares in the military conglomerate Myanma Economic Holdings Limited (MEHL), though the current status of such holdings is unclear. The KNA’s influence also extends across the Thai-Myanmar border, where Thai state-owned entities - the Provincial Electricity Authority (PEA) and PTT Oil and Retail Business Plc (PTTOR) - supplied electricity to the KNA-linked Shwe Myint Thaung Yinn company, which powers scam compounds. This supply was later suspended following the January 2025 trafficking case involving Chinese actor Wang Xing. Prominent Myanmar conglomerates – Myanmar Oriental Bank, CB Bank, and KBZ Bank – are also reported to have had previous business engagements with Saw Chit Thu's companies.  

For consultations on sanctions related matters, please reach out to Jack Myint at  jmyint@usasean.org.