How The Banks See U.S. Ban

Published: Thursday, October 05, 2006 Online-Casinos.com

HOW THE BANKS SEE U.S. BAN

Some of the vehicles used are impossible to control

The difficulties facing US banks and financial institutions in implementing the US ban on online gambling transactions was examined this week in an interesting discussion reported by Poker News.

Cheques and ACH (automatic clearing house) transactions are likely to be the biggest hurdle for enforcement, Laura Fisher of the American Bankers Association told John Caldwell of Poker News.

"When you get to checks, and ACH (automated clearing house) transactions, those are something that the industry feels would be extremely difficult, if not impossible to monitor," she said. "In terms of checks, there are 40 million checks processed every year. Monitoring those transactions would be an impossible burden for the industry to bear."

The bill does not make internet gambling illegal but rather requires financial institutions to police such transactions, and as such, prohibit them. The legislation will be guided and enforced by regulations written by the Federal Reserve and the U.S. Treasury Department.

Earlier in the week Steve Verdier, director of congressional relations for the Independent Community Bankers of America, which represents almost 5 000 banks in the United States commented: "If they find that the banks just don't have the technology to track and block these transactions, then we don't have to. The Fed and Treasury are not supposed to ask us to do the impossible."

One of the chief dangers is that international banking institutions might cave in to the pressure of US legislation and assist the American ban, which would make operating in the international online gaming sector considerably more difficult, if not impossible.