One of the newer white label industries which has been becoming popular in recent years has been hit by an unexpected setback as the leading payment processor in the industry, Counting House has been put on the U.S. Office of Foreign Assets Control (OFAC) sanctions list.
Clients of the firm in the lottery messenger industry have received emails informing them that the payment processing services will be suspended by Counting House until the matter is resolved. The company is also servicing a number of binary and FX brands.
The move comes after CNN published an investigative report focusing on mail fraud that associated a Canadian company named PacNet Services to potentially illicit activities in the US. Counting House has been put on the list of sanctions due to association with the company in question.
Tales from TIOmarkets: Not Just Another Trading CompetitionGo to article >>
PacNet Services has issued an official announcement that stongly rejects the accusations that it was aware of the mail fraud checks it was processing from direct mail campaigns.
“We will vigorously defend ourselves against these unproven allegations which we only learned about yesterday through media reports. As a result of this investigation, it is our understanding that several associated companies have been added to the Office of Foreign Assets Control (OFAC) list which we are also working to address,” the firm elaborated in a statement.
Counting House has been processing payments for the gaming industry and has been servicing lottery messenger clients since about the time the industry was started back in 2014. The firm does not have any association with the mail fraud allegations made against PacNet.
CNNMoney has published a detailed expose about Canadian payment processor PacNet Services, Ltd., which is targeted in a crackdown on global mail fraud, an effort led by Attorney General Loretta Lynch.