US blacklists Canada-based pay processor, citing fraud

The US Treasury Department today imposed financial sanctions on the international payments processing company PacNet, accusing it of facilitating fraudulent scams targeting the elderly and vulnerable.
PacNet Group, based in Canada and with a network of operations in Europe, Asia, Britain and Africa, knowingly laundered money from financial scams perpetrated in the United States and elsewhere, the Treasury Department said.
The department's Office of Foreign Assets Control, which oversees US economic sanctions, officially designated PacNet as a "transnational criminal organization", effectively forcing it out of the US banking system and hampering its access to global financial networks.
OFAC also blacklisted 12 people and 24 entities across 18 countries who are suspected of being involved in or supporting PacNet's operations.

"PacNet has knowingly facilitated the fraudulent activities of its customers for many years and today's designations are aimed at shielding Americans and the nation's financial system from the large-scale, illicit money flows that are generated by these scams against vulnerable individuals," John Smith, OFAC's acting director, said in a statement.
The US Justice Department was also expected to announce criminal proceedings, according to the statement, as US authorities executed search warrants and seized a PacNet bank account.