Banker's Speech An Oblique Shot At New Law?
Published: Tuesday, October 17, 2006 Online-Casinos.com
BANKER'S SPEECH COULD BE OBLIQUE SHOT AT NEW U.S. LAW
The Fed's chairman calls for regulators to come up with ways to decrease regulatory burdens on the US financial system
A speech by the chairman of the US Federal Reserve Bank, Ben Bernanke on Monday has been interpreted by several analysts as an oblique reference to the new Unlawful Internet Gambling Enforcement Act, which seeks to use financial institutions to put a stranglehold on cash flows to online gambling sites from US residents.
Reuters reports that the chairman recommended that bank regulators should search for ways to reduce regulatory burdens imposed on the financial system in the government's efforts to battle terrorist financing and money laundering.
"Deterring and identifying misuse of the financial system, as important as that is, should not be so onerous that it stifles innovation ... or reduces the international competitiveness of U.S. banks," Bernanke said in remarks prepared for the annual conventions of the American Bankers Association in Phoenix and America's Community Bankers in San Diego.
He said the central bank was determined to work to streamline the reporting processes required by the Bank Secrecy Act "without diminishing the value to law enforcement of the information produced."
Analysts point out that the new anti-online gambling law has been viewed with concern by several banking organisations, who are worried that effective monitoring could be costly and difficult in implementation.
"We are ever mindful that banks and their customers bear a large share of the costs of regulation," Bernanke said. "Minimizing the regulatory burden on banks is very important."
Bernanke said it was important for the banking industry to have the opportunity to get feedback from regulators on the usefulness of their reports on suspicious activity as well as guidance on ways to better identify the most significant risks. He said it was also important for banks to have effective channels to voice their concerns about burdens imposed by the secrecy law or the lack of clarity in the regulations they are supposed to enforce.
