|In America, the influential Credit Union National Association (CUNA) has asked the US Department of Treasury and the Federal Reserve to postpone implementing new regulations designed to enforce the Unlawful Internet Gambling Enforcement Act (UIGEA).|
The regulations are designed to enforce a ban on financial transactions with online gambling companies but CUNA states that the proposals raise a number of serious and practical concerns that will make compliance for institutions extremely difficult.
While CUNA commended the drafters for trying to meet the timing requirements involved, it joined with the National Association Of Credit Unions (NAFCU) in asking for a moratorium on the new regulations on the grounds that credit unions are ill-suited to take up what are essentially police functions.
“It is not clear how institutions will be able to meet their compliance requirements to identify and block transactions that fund illegal gambling activities when there is no mechanism under consideration that would allow them to verify when a payment transaction is intended for that purpose,” read the statement from CUNA.
Over 90 per cent of America’s credit unions belong to CUNA and it pointed out that one way of approaching the problem of the Government providing a list of unlawful online gambling businesses was precluded by the US authorities.
The supplementary information discussing the proposal goes to great lengths to explain why such a list should not be provided by the government,” read the CUNA statement.
'We feel that rather than continue with implementation of the current proposal, which raises a range of problematic issues, the regulators should work together with Congress to develop an approach that will meet public policy goals in a clearly understood manner and without inflicting undue hardships on the financial institution sector in the process.'