Federal Trade Commission Signs Cooperation Agreement with Latin American Countries to Combat Financial Crimes
The Federal Trade Commission (FTC) has taken a major step in the fight against fraud by signing a cooperation agreement with consumer protection authorities from Chile, Colombia, Mexico, and Peru. The Multilateral Memorandum of Understanding (MMOU) aims to promote information-sharing and coordination across Latin America to further investigations, policy development, and cross-border enforcement efforts.
A Significant Step Against Fraud
The MMOU is a significant step in the fight against fraud, particularly online scams that have been targeting consumers worldwide. According to data from 2019 to 2022, reports of fraud against companies in these Latin American countries more than doubled, with total losses reported by consumers skyrocketing from $39.4 million to $237.9 million.
Key Provisions of the Agreement
The MMOU allows the FTC and consumer protection authorities from these countries to cooperate in investigations related to violations of consumer protection laws, including:
- Sharing complaints submitted by consumers
- Providing investigative assistance
- Coordinating enforcement actions
- Participating in data-sharing initiatives like econsumer.gov
Future Expansion
The agreement also includes a mechanism for allowing other consumer protection authorities to join in the future, further solidifying international cooperation efforts.
Commission Vote and Sign-Off
The Commission voted 4-0 to authorize FTC Chair to sign the MOU. Commissioner Christine S. Wilson departed from the agency prior to the vote.
Director of Office of International Affairs’ Statement
Maria Coppola, the Federal Trade Commission’s Director of Office of International Affairs, emphasized that this agreement sends a strong message of shared commitment to protect consumers from cross-border fraud and deception. The MMOU provides a blueprint for extending cooperation across Latin America, bolstering efforts to fight financial crimes wherever they may occur.
Importance of International Collaboration
As online communications continue to facilitate global commerce and fraud, this agreement highlights the importance of international collaboration in addressing these issues. With over 225 million people representing about 8% of the world’s population, Chile, Colombia, Mexico, and Peru are significant economic powers that require coordinated efforts to combat financial crimes effectively.