Banker Says US Online Ban ‘Ineffective’

American Bankers Association vice president Steve Kenneally reiterated the United States’ banking industry’s position regarding the UIGEA (Unlawful Internet Gambling Enforcement Act) as part of a position paper issued by the Washington-based Medill News Service this past week. The ABA’s Kenneally commented on the likely effects of the UIGEA, which is scheduled to go into full effect on June 1, 2010, after a moratorium on a waiting period for banks to achieve compliance with the law expires.

In the piece, Kenneally reiterated many of the positions taken by the AGA when the rules for the UIGEA were being clarified for implementation, namely that the UIGEA will not prevent online transactions from occurring, but will nonetheless result in an increased workload for the United States’ already overworked banking system. The vague nature of the UIGEA’s regulations will raise additional enforcement problems for banks, and Kenneally noted that despite the act’s intent, customers will still be able to write paper checks or conduct electronic wires of funds, payment avenues that remain open despite UIGEA restrictions upon other payment channels.

Kenneally noted that banks’ efforts will likely be focused on preventing unlawful debit- and credit-card transactions, despite those methods already being the most regulated within America’s banking system.

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