The US Treasury Department on Thursday sanctioned four individuals and 41 companies linked to the Prince Group, the Cambodian conglomerate accused of running hundreds of scam compounds. It is the third round of sanctions against the network, and it targets shell companies set up to keep laundering the group’s proceeds.
Who Treasury Designated in the Prince Group Round
The sanctioned parties are tied to Prince Group operations spanning Cambodia, Madagascar and other countries. Treasury described the group as the operator of hundreds of scam compounds where workers and trafficking victims were forced to carry out cyberscams.
According to The Record, those scams stole billions of dollars from victims in the United States, Europe and China.
Shell Companies at the Center of the New Designations
The new designations focus on shell companies created to keep laundering the proceeds. Treasury said Prince Group executives relied on layers of offshore holding companies, foreign entities, nominee directors and corporate service providers to obscure who owns what.
The department also said employees tried to evade earlier sanctions by moving funds to shell companies, relatives or assistants.
The Prince Group’s Earlier Enforcement History
This is the third sanctions round against the network. The United States previously confiscated more than $15 billion in cryptocurrency from the group and its chief executive, Chen Zhi.
Dismantling of the Group and Chen Zhi’s Arrest
Prince Group was dismantled earlier this year after Chen was arrested and extradited to China. The sanctions continue US enforcement against the network’s financial structure after the group’s leadership was removed.
Effects of the Prince Group Designations on Intermediaries
Designation by the Treasury’s Office of Foreign Assets Control freezes US-linked assets of the named entities. It also raises compliance risk for intermediaries that do business with them, since transactions with designated parties can create legal exposure.
Targeting Prince Group’s Laundering Infrastructure
By naming shell companies, the Treasury is addressing the part of the operation that allowed money to move after the group’s main structure was broken up. The agency’s description of nominee directors and corporate service providers points to the professional-services layer that helps hide ownership. The coverage does not name the specific providers or list the companies and individuals designated.
Prince Group Reach Across Cambodia and Madagascar
The designations cover operations in Cambodia and Madagascar and in other countries, which shows a footprint extending beyond Southeast Asia into Africa. Treasury has not been reported to have attributed any specific new scam campaign to the designated parties in this round; the action focuses on the ownership and financing structures.
The sources describe the sanctions as part of ongoing US enforcement. They do not say whether further rounds are planned, and they do not describe any related criminal charges announced alongside the designations.
For the people forced to work inside the compounds, the actions described in the coverage address money flows and corporate structures, not the facilities themselves. Treasury’s statement, as relayed by The Record, characterizes the group’s workforce as including trafficking victims who were compelled to run the scams.
The sanctions leave open how much of the group’s laundering network remains active after three rounds of designations and the seizure of more than $15 billion in cryptocurrency. The pattern the agency describes, moving funds to new shells, relatives or assistants after each round, is the reason the latest action targets the shell companies directly.
Treasury’s Description of the Group’s Evasion Tactics
Treasury said Prince Group executives used layers of offshore holding companies, foreign entities, nominee directors and corporate service providers to hide ownership. After earlier sanctions rounds, employees tried to move funds to shells, relatives or assistants to avoid the restrictions, which is why the third round concentrates on the shell companies.
The Record reported the action on Thursday, Nov. 5. The article was the sole source for the details of the designations reviewed here.
