|In America, the Independent Community Bankers of America (ICBA) applauded the US Department of Treasury and Federal Reserve Board last week for writing ‘narrow and reasonable’ proposed regulations to implement the Unlawful Internet Gambling Enforcement Act (UIGEA).|
The group was responding to a request from the US Department of Treasury for opinions on its proposed regulations, which are designed to disrupt financial transactions with online gambling companies in sectors not exempted by American state and Federal legislation.
'ICBA applauds the agencies for proposing regulations that fulfil the law's requirements without imposing undue new burden on all payment system participants,' said Viveca Ware, Payments and Technology Policy Director for ICBA.
'We particularly appreciate the agencies' use of the law's authority to exempt certain transactions where transaction tracking and blocking is not practical.'
ICBA stated that, rather than exempt categories of transactions or entire payment systems, the proposed regulations base exemptions on a participant's role. This places the burden on payment system participants who are best positioned to ascertain whether an entity is engaged in unlawful Internet gambling and identify and block these restricted transactions.
'Community bankers believe that it is critical that their resources be focused where risks to our national safety and financial soundness are greatest,' said Ware.
'ICBA is deeply concerned when our nation's payment systems are used to track, analyse and block individual payment transactions given the potential for such requirements to undermine payment systems efficiency. Payment systems were not designed for this function.'