Opinion: Scam sanctions need to reach the companies behind the fraud
Treasury expanded sanctions against the Prince Group network and separately targeted a Madagascar-based scam operation. Blocking corporate escape routes is a sensible aim; disrupted fraud is the measure of success.
The Treasury Department imposed sanctions on November 5 against four individuals and 41 entities it says sustain the Prince Group criminal organization, along with a separate Malaysian individual accused of running a scam network in Madagascar. Targeting the companies and financial intermediaries behind online fraud is a sound extension of enforcement. The value of these sanctions will depend on whether they obstruct the movement of criminal proceeds and the continuation of scams.
What the release says
Treasury said the Prince Group targets helped the organization maintain operations after earlier U.S. sanctions through offshore companies, concealed ownership, property transfers and administrative or financial services. The department links the group to digital-asset investment fraud, romance scams and Southeast Asian compounds using trafficked or coerced workers. These descriptions are Treasury’s account of the conduct underlying its designations.
The action follows Prince Group sanctions announced on October 14, 2025, and June 23, 2026. The new designations extend to businesses and individuals across several jurisdictions rather than treating the organization as a single company.
In the separate action, Treasury accused Malaysian national Chui Kok Wa of leading scammers in Madagascar who defrauded Americans of more than $400,000 equivalent, including through digital assets. The release announces an OFAC designation; it does not report a criminal conviction of Chui.
Treasury says the action blocks designated persons’ property in the United States or in the possession or control of U.S. persons, and requires reporting to OFAC. Entities owned at least 50 percent, directly or indirectly and individually or collectively, by blocked persons are also blocked. The release describes general transaction prohibitions subject to applicable licenses or exemptions.
Read the official release: Treasury Targets Global Scam Networks and the Corporate Infrastructure That Enables ThemOur centrist perspective
A sanctions list limited to senior figures can leave room for associates to hold assets or keep companies operating. Treasury’s allegations about transfers and concealed ownership explain the case for pursuing those supporting structures. For financial institutions, the practical task extends beyond recognizing a listed name to understanding who owns the businesses involved.
The tradeoffs
The breadth of the corporate network creates a demanding identification problem. Accurate ownership checks can help restrict illicit funds, while mistakes can disrupt legitimate transactions. Blocking property is also different from recovering it for victims: the announcement supplies no recovery total or evidence that these designations have already reduced scam losses.
What to watch next
- Watch for disclosed blocked assets, further actions against replacement companies and official evidence of disrupted operations. The release describes a process for seeking removal from OFAC’s list. A credible sanctions policy combines effective restrictions with a way to reassess designations under the law.
This is an editorial interpretation, not an official agency statement. Factual summaries rely on the linked release; implications and recommendations are our opinion. How we work