In a shocking whistleblower complaint, Mastercard and Visa stand accused of turning a blind eye to illicit transactions on the popular adult platform, OnlyFans. The complaint, which was filed with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) and several other federal agencies, alleges that both payment giants failed to stop the flow of money generated by child sexual abuse material (CSAM) and sex trafficking on the platform. This article explores the critical compliance failures revealed in the whistleblower’s report, shedding light on the systemic issues within the payments industry that have enabled the monetization of illegal content for years.

Lack of Compliance in Stopping Illicit Transactions

The whistleblower, a senior expert in compliance and anti-money laundering (AML) practices, claimed that both Mastercard and Visa were well aware of the illegal activities taking place on OnlyFans, particularly regarding the monetization of CSAM and trafficking content. Despite multiple warnings from anti-trafficking experts and even U.S. federal agents between 2021 and 2022, both companies allegedly failed to take the necessary action to stop the illicit flows of funds.

The whistleblower’s complaint pointed to several instances in which both card companies were notified about the troubling presence of illegal content on the platform. This included a study by the Anti-Human Trafficking Intelligence Initiative (ATII), which uncovered a “high volume” of accounts associated with CSAM and trafficking indicators. Even though the card companies were given detailed information about the illegal content, they allegedly did little to prevent it from being monetized.

Turning a Blind Eye

One of the most alarming aspects of this case is the accusation that Mastercard and Visa willfully ignored their obligations under the Bank Secrecy Act (BSA), which mandates financial institutions to maintain effective anti-money laundering programs. According to the complaint, the card companies’ failure to act on the information provided to them exemplifies their lack of compliance with these critical regulations.

The whistleblower’s complaint stresses that Visa and Mastercard had the power to “turn off the switch” and prevent payments for illicit material. Yet, despite knowing that these platforms were being used for criminal activities, they allegedly chose to maintain the status quo, continuing to process payments and allowing the proceeds from CSAM and sex trafficking to flow freely. This lack of action not only violates legal and ethical standards but also raises serious questions about the effectiveness of their internal compliance programs.

Whistleblower’s Allegations and the Response from Visa and Mastercard

Filed in January 2023, the whistleblower’s complaint accuses both Mastercard and Visa of ignoring multiple alerts from federal agents, trafficking experts, and the ATII regarding the presence of illegal content on OnlyFans. The complaint claims that these experts not only identified potential cases of CSAM and sex trafficking but also provided evidence to Visa and Mastercard that these activities were taking place on the platform.

Despite these revelations, both card companies have denied any wrongdoing. Visa, in particular, has claimed that it was not aware of the whistleblower complaint until it was contacted by Reuters. The company argued that its networks are “robust” in terms of compliance and are designed to detect and prevent illegal activities. Mastercard echoed this sentiment, asserting that it had implemented strong governance standards and internal controls to address potential illegal content.

However, the whistleblower’s account suggests a different reality—one where the card companies failed to take appropriate action despite being repeatedly informed of the illegal activities taking place on the platform. The lack of follow-up from Visa and Mastercard raises concerns about the efficacy of their compliance mechanisms and whether they truly have the resources and commitment to address illegal transactions on adult platforms like OnlyFans.

Systemic Issues in Payment Networks

The failure of Visa and Mastercard to prevent the flow of illicit payments through OnlyFans highlights a larger issue within the payments industry: the systemic lack of compliance regarding adult content platforms. While Visa and Mastercard have taken steps to tighten their rules for adult-related businesses, such as requiring identity verification for those featured in content, their actions appear insufficient in curbing the larger problem of illegal material.

Both card companies have introduced stricter rules in recent years to prevent illegal content from circulating on their networks. For instance, Mastercard enforced stricter requirements for adult sites, mandating that merchants provide monthly reports of potentially illegal content. Yet, the whistleblower claims that these actions were not enough and that both companies continued to allow illegal content to be monetized despite their knowledge of the situation.

Visa and Mastercard’s approach to these issues appears reactive rather than proactive. While both companies have implemented rules for monitoring adult content, they have been criticized for shifting responsibility onto banks and other financial institutions. This lack of accountability further underscores the need for more stringent oversight and compliance measures within the payment processing sector.

The Role of OnlyFans in Facilitating Illegal Content

While Mastercard and Visa’s role in processing payments for illicit content is a major concern, OnlyFans’ own compliance with anti-trafficking regulations is also called into question. The platform, which allows creators to monetize explicit content through subscriptions and pay-per-view content, has been under scrutiny for its role in hosting illegal material.

Despite claiming to have a “zero-tolerance policy” against CSAM and trafficking, OnlyFans has faced several reports of illegal content circulating on its platform. As of 2023, there have been numerous allegations of underage material and sex trafficking content being shared by users. The fact that Mastercard and Visa continued to process payments for such content raises further questions about the platform’s oversight.

Conclusion: A Call for Greater Accountability

The allegations against Mastercard and Visa highlight significant compliance failures in the fight against illegal content and trafficking on adult platforms. The whistleblower’s complaint paints a troubling picture of two powerful payment giants turning a blind eye to the illegal activities happening under their noses. With millions of dollars in illicit transactions flowing through their networks, it is clear that stronger oversight and stricter compliance measures are needed to prevent such exploitation.

As this case continues to unfold, it serves as a stark reminder of the importance of compliance and the role financial institutions play in combatting illegal activities. For Mastercard and Visa, the pressure is now on to prove that they are not just paying lip service to anti-money laundering and anti-trafficking regulations but are genuinely committed to eradicating illegal transactions from their networks.

Related Links

• BBC: OnlyFans faces scrutiny over child abuse material
• Anti-Human Trafficking Intelligence Initiative Report
• Visa’s Compliance Policy on Adult Content
• Mastercard’s Anti-Trafficking Measures

Other FinCrime Central Articles about Crime and Social Networks

• Major Human Smuggling and Money Laundering Ring Leaders Sentenced in High-Profile Case
• TikTok Lawsuit Reveals Shocking Money Laundering Allegations
• Alarming Rise in Money Muling: A Silent Weapon in Organized Crime

Source: Reuters