OFAC designates PacNet Group as a TCO

OFAC has designated PacNet Group, an international payments processor and money services business based in Canada, as a Transnational Criminal Organisation (TCO) for its alleged history of money laundering on behalf of mail fraud schemes. It has also designated 12 individuals and 24 entities, across 18 countries, for providing support to PacNet or being owned or controlled by those that do. PacNet is the 7^th TCO to be listed by OFAC, alongside the Japanese Yakuza crime syndicates, Mexican cartel Los Zetas, and Italian criminal organisation the Camorra.

In the US Treasury’s press release, OFAC’s Acting Director John Smith said that “PacNet has knowingly facilitated the fraudulent activities of its customers for many years” and the “large-scale, illicit money flows that are generated by these scams against vulnerable individuals”. OFAC closely coordinated the designations with the Department of Justice, which will also be announcing criminal actions and filing civil injunctions in relation to PacNet’s activities.