US Imposes Sanctions on Cambodian Businessman Over Human Trafficking Abuses

The United States has imposed sanctions on Cambodian businessman Ly Yong Phat and several entities for alleged human trafficking and forced labor in scam operations. The sanctions come amid strained US-Cambodia relations, complicated by Cambodia's growing ties with China. Ly's conglomerate and several resorts were specifically targeted.

The United States announced sanctions on Thursday against Cambodian businessman and ruling party senator Ly Yong Phat, along with several entities, citing alleged abuses related to trafficked workers who were forced to work in online scam centers.

The move, initially reported by Reuters, occurs during a sensitive period in US-Cambodia relations. Cambodia has been increasingly aligning with China's strategic ambitions despite Washington's efforts to establish better ties with its new leader, Hun Manet, son of long-term leader Hun Sen.

Sanctions imposed by the US Treasury Department's Office of Foreign Assets Control target Ly's L.Y.P. Group Co. conglomerate, O-Smach Resort, and other properties he controls, such as the Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel.

(With inputs from agencies.)