Before the OFAC designation, US authorities warned PacNet of criminal business partners and asked that they stop dealing with them. In one 2014 case, PacNet received subpoenas from the Iowa State Attorney General for allegedly victimizing the elderly and enabling fraudsters. PacNet continued to process these controversial transactions until the fraudsters themselves were shut down by law enforcement.
PacNet’s designation stems from Executive Order 13581, called, “Blocking Property of Transnational Criminal Organizations.” The rationale behind the order, issued in 2011 by President Barack Obama, was that many foreign criminal organizations were gaining more power through sophisticated technology, and were becoming a growing threat to the United States.
According to SanctionsAlert.com, the executive order “freezes the property or interests in property of designated individuals or entities (1) within the jurisdiction of the US; (2) within the control or possession of ‘US persons’; or (3) that may come into the possession or control of any US person, including any overseas branch.”
