The order against FGV Holdings Berhad, one of Malaysia's largest palm oil companies and a joint-venture partner with American consumer goods giant Procter & Gamble, went into effect Wednesday, said Brenda Smith, executive assistant commissioner at the US Customs and Border Protection's Office of Trade.

The action was triggered by a petition filed last year by nonprofit organisations.

"We would urge the US importing community again to do their due diligence," Smith said, adding companies should look at their palm oil supply chains. "We would also encourage US consumers to ask questions about where their products come from."

Smith said the Customs agency found evidence of restriction of movement on plantations, isolation, physical and sexual violence, intimidation and threats, retention of identity documents, withholding of wages, debt bondage, abusive working and living conditions, excessive overtime, and potential forced child labour.

Malaysia is the world's second largest producer of palm oil. Together with Indonesia, the two countries dominate the global market, producing 85 per cent of the $65 billion supply.

Palm oil and its derivatives from FGV, and closely connected Malaysian state-owned Felda, makes its way into the supply chains of major multinationals including Nestle, L'Oreal, and Unilever. Several huge Western banks and financial institutions not only pour money directly or indirectly into the palm oil industry, but they hold shares in FGV.

FGV issued a statement over the weekend outlining its commitment to human rights, including steps it was taking to make sure its workers have access to their passports and wages.

"Despite ongoing criticism and allegations against FGV, we will continue with our effort to strengthen our practices to respect human rights and uphold labour standards," FGV said. "Our commitment to sustainability is clear, and we are determined to achieve the goals and targets we have set as a responsible and sustainable business."

Australian Associated Press