The Treasury Department of the United States revealed sanctions targeting Brigadier General Saw Chit Thu, who leads the Karen National Army (KNA), and his sons, Saw Htoo Eh Moo and Saw Chit Chit, in a statement released on May 5.

The Office of Foreign Assets Control (OFAC) stated the sanctions are in response to the trio's alleged involvement in online financial scams, human trafficking, and cross-border smuggling operations that have targeted US citizens. The sanctions, part of an ongoing crackdown on transnational crime linked to lawless areas in Southeast Asia, highlight the growing US concern over illicit activities taking root in territories controlled by Myanmar's ethnic armed groups. OFAC stated that KNA-controlled zones along the Thai-Myanmar border have become enclaves for cyber scam syndicates and that KNA has financially benefitted from its relationship with Chinese criminal rings that run scam centres and Myanmar’s military. “These sanctions target individuals facilitating scam operations in territories controlled by the KNA, which are also known to benefit from the Myanmar military’s illicit enterprises,” OFAC said.

The move follows earlier sanctions placed on the Myanmar military leadership, arms brokers, and business cronies, but it marks one of the few times Washington has directly targeted members of an ethnic armed group. In recent months, US authorities have also sanctioned Kokang and Wa-linked entities over scam centres in northern Shan State, signalling a growing effort to hold non-state actors accountable as the regional scam industry expands.

In response to the US sanctions, a spokesperson for the Karen National Army, Deputy Commander Naing Maung Zaw, refuted the allegations and denied the accusations of the group's involvement in online scams and human trafficking. “If they say they are blocking us for scam centres and human trafficking, then it’s just Saw Chit Thu and his two sons they’re coming after, nothing else in the world, just them,” Naing Maung Zaw told bno. “These scam jobs are not only happening in our area, we’re not involved in this, we just lease the land. We don’t have shares in these operations. We’ve never received profit-sharing from these scam businesses. We’re not part of any human trafficking network as they accuse.”

Naing Maung Zaw questioned why a global superpower would act on what he described as a minor issue. “We’re thinking a lot about this. Why is a global superpower like this so interested in such a small issue? If this is what they call sanctions, well, what have they ever given us? We’ve never received anything from them, not in the past, not during the transitions from the DKBA to the BGF, and now the KNA. They never came to help our region or our people out of sympathy,” he said. He noted that the only support received came from Japan’s Nippon Foundation, which helped build affordable housing in Karen State, while others imposed punitive measures without offering assistance.

“These sanctions aren’t a surprise. We've always faced many difficulties, and we’ve developed our region ourselves. So, no matter how big these sanctions are, they won’t affect us significantly,” he added. “Sanctions are not good. They don’t help cooperation. And even when we work hard, we still get sanctioned. We’re just a small group, so of course we’re on the receiving end of whatever the superpowers do.”

Naing Maung Zaw further insisted that KNA is actively cracking down on scam activities in the region. “Our group is actually working to eliminate these scams,” he said. “We often hear these repeated accusations, but sanctions won’t change anything. We’ll keep doing what we’re doing.”

The KNA is one of several armed groups operating semi-autonomously along Myanmar’s borders. While some ethnic groups have aligned against the junta since the 2021 coup, others, like remnants of the former Democratic Karen Buddhist Army (DKBA), maintain a complex relationship with the military regime and regional criminal networks. The US has recently broadened its sanctions strategy to include not only state actors but also non-state armed groups and militia leaders allegedly complicit in transnational crimes. The inclusion of KNA leadership in OFAC’s blacklist reflects that shift.