PacNet’s combination of relaxed conditions and widespread access has made it easy for scammers to take advantage of the service.
On September 22nd, 2016, OFAC designated PacNet as a “significant transnational criminal organization.” The government argued that PacNet is part of an international network that steals millions of dollars from the elderly and other vulnerable parties. This designation places the payment processor on a list alongside some of the world’s most deadly criminal organizations. These criminal organizations include groups like the Los Zetas, Yakuza, and MS-13.
John E. Smith, the OFAC acting director, stated that “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. Treasury will continue to use its authorities to respond to the evolving nature of transnational organized crime.”
