The United States Department of the Treasury announced on 23 December that a new round of sanctions had been imposed on a number of individuals and entities involved in fraud in South-East Asia and that FinCEN, a financial crime enforcement network, had been pushed to tighten restrictions on H-Pay. According to the United States regulator, the payment company had a continuing relationship with the previously targeted Huione Group.
Extension of sanctions
OFAC, Office of Overseas Assets Control, Ministry of Finance, sanctioned 9 individuals and 26 entities for this time, targeting networks associated with Prince Group transnational criminal organizations. According to the United States, the network operates fraud parks in Cambodia and transfers funds through cybercrime and encrypted investment scams.
H-Pay included in the limit
FinCEN also proposes to amend the existing rules to explicitly include H-Pay Service PLC and its future successors. In its 34-page proposal, the Agency stated that H-Pay had actually taken over the original business of Huione Pay.
Regulatory focus on “shell exchange” operations
FinCEN states that after Huione Pay lost its Cambodian payment license, H-Pay took over branches, client groups, brand elements and operational traces. It also cited reports that the multi-gate shop had changed the H-Pay logo following regulatory action.
Encryption and fraud remain the focus.
According to the United States Department of the Treasury, the Southeast Asia Fraud Centre continued to lure Americans through online relationships and false investment platforms, with many cases involving digital assets. The Department of the Treasury estimates that Americans lost at least $10 billion in 2024 as a result of such fraud, an increase of 66 per cent over the previous year.
Additional information:According to the Ministry of Finance, the operation was carried out in coordination with international partners and in conjunction with law enforcement measures targeting relevant infrastructure.