US and UK law enforcement agencies impose sanctions on cybercrime organization Prince Group

Source: U.S. Treasury Department; Compiled by Golden Finance. The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), in close coordination with the UK Foreign, Commonwealth, and Development Office (FCDO), have imposed comprehensive sanctions on 146 individuals affiliated with the transnational fraud organization Prince Group (TCO). Headquartered in Cambodia and led by Cambodian citizen Chen Zhi, the organization operated a transnational criminal enterprise through online investment scams targeting the United States and other regions around the world. Additionally, FinCEN removed Huione Group, a Cambodian-based financial services group, from the U.S. financial system pursuant to Section 311 of the USA PATRIOT Act. For years, Huione Group has laundered funds for malicious cyber actors, including proceeds from virtual currency scams and theft. U.S. Treasury Secretary Scott Besant said: "The rapid spread of transnational fraud has cost American citizens billions of dollars and wiped out their life savings in minutes. The Treasury is taking action to crack down on foreign fraudsters to protect the safety of American citizens. Working closely with U.S. federal law enforcement and international partners like the UK, the Treasury will continue to play a leading role in protecting American citizens from predatory criminals." Over $16 Billion in Online Fraud Losses Prompts US and UK Action Losses to online investment fraud in the United States have continued to rise over the past few years, totaling over $16.6 billion. A U.S. government estimate indicates that Americans will lose at least $10 billion to fraud in Southeast Asia in 2024, a 66% increase from the previous year. The losses are particularly severe due to fraud rings like the Prince Group. Over the past decade, transnational organized crime groups like the Prince Group have established lucrative online fraud operations across Southeast Asia, particularly in Cambodia. Prince Group remains a dominant player in Cambodia's fraudulent economy, controlling billions of dollars in illicit financial flows. The actions taken by the U.S. Treasury's Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) were closely coordinated with the UK's Foreign, Commonwealth, and Development Office (FCDO), which has also taken action against criminal networks that target citizens of the United States and other allies through online fraud and launder proceeds. The FCDO has also imposed sanctions on Prince Group, Chen Zhi, and their key associates. This joint action was the result of close collaboration between the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of New York, and the FCDO. Huione Group has been removed from the U.S. financial system for laundering billions of dollars and operating in a fraudulent network. In addition to today's coordinated sanctions, FinCEN also issued a Section 311 final rule removing Huione Group from the U.S. financial system. The final rule accuses Huione Group of being a key node in a Southeast Asian organized crime syndicate operating virtual currency investment scams, commonly known as "pig-killing schemes." Notably, Huione Group laundered at least $4 billion between August 2021 and January 2025. FinCEN found that of this $4 billion in illicit proceeds, Huione Group laundered at least $37 million worth of cyber-stolen virtual currency, at least $36 million worth of virtual currency investment scams, and $300 million worth of virtual currency from other cyber-scams. Through the final rule, regulated financial institutions are now prohibited from opening or maintaining correspondent accounts for or on behalf of the Huione Group and are required to take reasonable steps not to process transactions involving the Huione Group for correspondent accounts of foreign banking institutions in the United States, thereby preventing the Huione Group from indirectly accessing the U.S. financial system. Prince Group Designated a Transnational Criminal Organization The Prince Group Transnational Criminal Organization consists of the Cambodian Prince Holding Group, its Chairman and CEO Chen Zhi, his associates and business partners, and their core business interests, all of which operate to further the criminal activities of the Prince Group Transnational Criminal Organization. The Phnom Penh-based multinational conglomerate has investments in entertainment, finance, and real estate. Prince Holding Group's publicity and marketing materials conceal a range of transnational criminal activities, including the construction, operation, and management of fraud parks and the commission of large-scale cyber fraud operations targeting victims worldwide, including U.S. citizens. Today, OFAC also sanctioned an additional 117 entities affiliated with the Prince Group transnational criminal organization, the vast majority of which are offshore shell companies with no apparent commercial or business activity, and one associated official. OFAC determined that these entities and individuals are actually owned or controlled by companies affiliated with the Prince Group transnational criminal organization, or purported to act on its behalf. These targets are designated as part of the Prince Group transnational criminal organization network pursuant to Executive Order 13851. Additionally, the U.S. Treasury Department is investigating the Prince Group transnational criminal organization's operations in Palau. Prince Group collaborated with known organized crime groups to lease an island and establish a resort. Treasury's action supports Palau's ongoing efforts to protect against predatory investments by transnational organized crime groups. Prince Group TCO Officials Coordinate Criminal Activities

Chen Zhi worked closely with the Vice Chairman and the Financial Assistant who managed Prince Group Holdings' subsidiaries, manipulating the flow of billions of dollars in illicit funds. These associates oversaw the operation of both legal and illegal activities and liaised on Chen Zhi's behalf with banks, government officials, and other knowing and unwitting partners. Together, these individuals comprised the Prince Group's transnational criminal organization and its core business interests. Today's action targets multiple members and associates of the Prince Group's transnational criminal organization.

Sanctions Impact

As a result of this action, all property and interests in property of the sanctioned individuals located in the United States or held or controlled by U.S. individuals are blocked and must be reported to OFAC. Additionally, any entity in which one or more sanctioned individuals, directly or indirectly, individually or in the aggregate, owns 50% or more of the equity is also blocked. Unless authorized by a general or specific license or exemption issued by OFAC, transactions by U.S. persons or within (or transiting through) the United States involving any property or interests in property of designated or otherwise blocked persons are generally prohibited under OFAC regulations.

In addition, persons engaging in certain transactions with the individuals and entities designated today may themselves be subject to sanctions or enforcement action. Non-U.S. persons are also prohibited from causing or conspiring to cause U.S. persons to intentionally or unintentionally violate U.S. sanctions, as well as engaging in conduct that circumvents U.S. sanctions. OFAC's Economic Sanctions Enforcement Guide provides more information on OFAC's enforcement of U.S. sanctions, including factors OFAC typically considers when determining the appropriate response to apparent violations.

The effectiveness and integrity of OFAC sanctions stem not only from OFAC's ability to designate and place individuals on the Specially Designated Nationals (SDN) List, but also from its willingness to remove individuals from the SDN List in accordance with applicable law. The ultimate purpose of sanctions is not to punish, but to induce positive change in behavior.