Fraud on the rise worldwide: Governments strengthen their actions to combat it

Melissa López
April 16, 2021

Crisis and recession are the perfect scenarios for the proliferation of fraud worldwide, a situation that has increased with the pandemic where from underdeveloped countries to world powers have been affected to a greater or lesser extent.

The use of financial digital tools has generated a statistical spike in fraud, according to the latest PwC Global Survey on Economic Crime and Fraud 2020,  in the period from January to June 2020 there was a 70% increase in this type of attack.

FinTechs have been the great allies of financial institutions to strengthen their filters in cybersecurity, with the incorporation of biometric security, data encryption, QR codes, among others.

Antit stands out for the incorporation of this type of control in the development of its FinTech applications.

However, security is a matter where both users and financial institutions have different degrees of responsibility.

Currently, at the international level, there are a series of sanctions whose main objective is to fight against fraud in the various economic spheres in search of discouraging its development, below we will recount the main ones.

Fraud blacklist of Members of Parliament of the European Union

This list aims to protect the financial system of the European Union (EU) and oblige financial institutions to be more strict in choosing the countries where they wish to carry out their operations.

Also, through this system, any request for help from companies linked to the territories on the said blacklist is rejected as they are considered to be at high risk of terrorist financing and money laundering.

Some of the countries included are Saudi Arabia, Panama, Nicaragua, Afghanistan, American Samoa, Bahamas, Botswana, North Korea, Ethiopia, Ghana, Guam, Iran, Iraq, Libya, Nigeria, Pakistan, Puerto Rico, Fiji, Fuam, Oman, Trinidad and Tobago, the US Virgin Islands, Vanuatu, the Cayman Islands, Palau, and Seychelles, among others.

List of the Office of Foreign Assets Control (OFAC)

OFAC is a financial control body belonging to the United States Department of the Treasury, among its functions is the application of US international sanctions in the financial field under the command of the Office of Terrorism and Financial Intelligence.

The individuals and companies included in their list are considered the property or under the control of groups or entities made up of terrorists or drug traffickers.

Collectively they are called “Specially Designated Nationals” or “SDNs”. Your assets are blocked and people in the US are generally prohibited from dealing with them.

Those who defy this guideline will be subject to fines, an asset freeze, and a ban on operating in the United States.

To see the complete and updated list, you can go directly to the OFAC website or download it by clicking here.

Consolidated sanctions of the United Nations (UN)

This list is made up of individuals and entities on whom action was imposed by the UN Security Council in response to what was deemed a threat.

The names of the individuals and entities are published on the institution's website, as well as information on the specific measures applied to each of the names on the list.

The main reasons why they are applied are: commercial and economic sanctions, to protect the national economy, reduce nuclear proliferation, obtain compensation for appropriations of goods ordered by other governments, preserve security and protect human rights.

To know the official list, you can go to the UN website HERE.

Bank of England sanctions list

The Bank of England manages a list of terrorist organizations whose purpose is to make it easier for financial institutions that work in the United Kingdom to identify them in case they have to proceed to freeze assets.

Besides, financial entities are penalized for manipulating interest rates or the foreign exchange market, as well as not complying with the respective delivery of documents and records of their activities.                                                                                                    

It is precisely the Bank of England's Freezing Unit that is responsible for the implementation and administration of the international sanctions established by the United Kingdom.

To consult the list you must go to . There you can check for recent updates in the Latest releases module.

Blocked People List

This list is prepared by the Financial Intelligence Unit (UIF) of the Ministry of Finance and Public Credit (SHCP), it contains the name of the people who have been identified for making use of illicit resources to carry out their activities or on the contrary, finance them.

Likewise, it seeks to set international standards in the prevention and fight against money laundering and terrorist financing, at the same time promoting their effective implementation through legal, regulatory, and operational measures.

  • Among the criteria to leave this list are:
  • When foreign authorities, international organizations, intergovernmental groups, or Mexican authorities eliminate people from their lists.
  • When it is considered that they have not carried out or carry out activities that are part of, assist in, or are related to the crimes of money laundering and terrorist financing.
  • When the criminal judge issues an acquittal or the person has completed his sentence.
  • When so resolved by the Financial Intelligence Unit of the SHCP by the procedure established for that purpose.
  • When so determined by the competent judicial or administrative authority