Enforcement Release - Payoneer Inc.

Date issued: Jul. 23 2021

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TURBOFAC Commentary (658 words)

Notes:

1) The Payoneer case is the latest in a string of payment processing cases that serve to highlight OFAC’s diligence expectations, rather than the scope and operation of the laws it administers.

Payoneer is an unusual actor, relative to the typical entity that gets fined by OFAC for processing prohibited financial transactions. The company’s primary customer base consists of other businesses, some of which are small freelance and service providers, and others of which are among the largest e-commerce companies in the world (e.g. Amazon). In that regard, it is possible, though OFAC does not say one way or the other, that some of the violations at issue here related to payments made in connection with sales by other extremely large customers that are expected to screen their customers (e.g. third-party sellers that operate on the Amazon.com platform). If OFAC’s screening...