Post by jdaddy on Dec 19, 2007 15:55:53 GMT -4
[UIGEA] Banks attack conflicting US gambling rules
by Financial Times
Banking lobbyists are warning the US Treasury that regulations proposed in the wake of last year's sweeping anti-gambling law will be impossible to comply with unless the Bush administration clarifies its conflicting views on online betting.
The Financial Services Roundtable, which represents dozens of banks and other financial services firms, said it was "very concerned" that adoption of the rules could impose "significant" and costly compliance burdens on banks.
"The statute and the proposed rule expand the role of financial institutions to police laws that are more appropriate for law enforcement agencies," the Roundtable said in public filings to the Treasury and Federal Reserve.
The criticism raises new questions about whether regulators will be able to enforce a law that, in effect, requires banks and other institutions to know the purpose and legality of payments in an industry - online gambling - in which federal and state rules often conflict.
The proposed rules would require US financial companies with designated payments systems to have policies and procedures that are "reasonably designed" to prevent payments being made to illegal gambling businesses. According to the US Treasury, illegal gambling consists of any bet or wager involving the internet that is illegal in the state in which the bet is made.
The proposed rules were drafted after the passage last year of the Unlawful Internet Gambling Enforcement Act, a bill that wiped billions of dollars in value from non-US gambling websites.
by Financial Times
Banking lobbyists are warning the US Treasury that regulations proposed in the wake of last year's sweeping anti-gambling law will be impossible to comply with unless the Bush administration clarifies its conflicting views on online betting.
The Financial Services Roundtable, which represents dozens of banks and other financial services firms, said it was "very concerned" that adoption of the rules could impose "significant" and costly compliance burdens on banks.
"The statute and the proposed rule expand the role of financial institutions to police laws that are more appropriate for law enforcement agencies," the Roundtable said in public filings to the Treasury and Federal Reserve.
The criticism raises new questions about whether regulators will be able to enforce a law that, in effect, requires banks and other institutions to know the purpose and legality of payments in an industry - online gambling - in which federal and state rules often conflict.
The proposed rules would require US financial companies with designated payments systems to have policies and procedures that are "reasonably designed" to prevent payments being made to illegal gambling businesses. According to the US Treasury, illegal gambling consists of any bet or wager involving the internet that is illegal in the state in which the bet is made.
The proposed rules were drafted after the passage last year of the Unlawful Internet Gambling Enforcement Act, a bill that wiped billions of dollars in value from non-US gambling websites.