|In America, Representatives Barney Frank and Ron Paul have introduced legislation that would prohibit the Federal Government from issuing rules called for by the Unlawful Internet Gambling Enforcement Act (UIGEA).|
If passed, House of Representatives 5767, also known as the Safe and Secure Internet Gambling Initiative (SSIGI), would stop the Department of the Treasury and Federal Reserve System from proposing, prescribing or implementing any regulations relating to UIGEA, which requires financial institutions to identify and block online gambling transactions.
“The Frank-Paul bill would stop the US Government from taking any further steps on regulations that would require all of the country’s financial institutions to block Internet gambling payments,” said Jeffrey Sandman, Spokesman for SSIGI.
“It’s a bold move but a necessary one in light of the warnings from the Treasury and Federal Reserve that they did not know how to write regulations to solve the problems created by UIGEA.”
Sandman stated that UIGEA would create significant additional burdens for American financial institutions, several of which stated at a special Congressional hearing earlier this month that it was unfair to turn them into online gambling police.
'The ban on Internet gambling infringes upon two freedoms that are important to many Americans, the ability to do with their money as they see fit and the freedom from Government interference with the Internet,” said Paul, a Republican from Texas.
“The regulations and underlying bill also force financial institutions to act as law enforcement officers. This is another pernicious trend that has accelerated in the aftermath of the Patriot Act, the deputisation of private businesses to perform intrusive enforcement and surveillance functions that the Federal Government is unwilling to perform on its own.'
“These regulations are impossible to implement without placing a significant burden on the payments system and financial institutions and, while I do disagree with the underlying objective of the Act, I believe that even those who agree with it ought to be concerned about the regulations’ impact,” said Frank, a Democrat from Massachusetts.