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Copyright © 2006 Poker News
HEADLINE: Bankers React to Online
Poker Legislation
Author: John Caldwell
Body:
An interesting side note to the recently passed online
gaming legislation is the role banks must play in enforcing the
soon-to-be law. Under the new law, banks would be required to
monitor transactions, and block any kind of transactions designed
to send money to online gaming companies from Americans.
At first, many banks expressed concern over the burden of having
to monitor tens of millions of transactions a year, and the impact
that might have on the bank from a labor perspective. Many of
those fears seem to have abated, and indeed it seems like the
banks (or at least the associations that represent them) feel
the language in the new law is workable within their current structure.
"This bill does not add any burdensome responsibilities
to banks" says Laura Fisher of the American Bankers Association,
who represents banks and credit card companies from the largest
banks in the world, to small community banks. "Fortunately,
we were able to work with the sponsors [of the bill] to minimize
the downside."
Banks and credit card companies, such as Visa, will likely be
completely unaffected by the new legislation "When I spoke
to the credit card companies that we represent, they find the
new requirements to be workable, and in fact consistent to what
they are already doing." Notes Fisher "Some credit card
companies already block payments to Internet gambling sites. So,
for them, it's something that is now mandated, but something many
of them have been doing already."
However, there is one area that is still largely unresolved,
and it appears it will remain unresolved.
"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." Adds
Fisher "In terms of checks, there are 40 million checks processed
per year. Monitoring those transactions would be an impossible
burden for the industry to bear."
Steve Verdier, Director of Congressional Relations for the Independent
Community Bankers of America, who represent smaller, independent
bankers thinks the government will work with banks on trying to
adapt to the new legislation "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." Verdier recently told MSN Money.
Fisher also notes that the procedures are not yet set, and banks
must adopt a wait and see attitude before they can really know
what they are required to do. "We still have to wait for
the Fed, and the Treasury to write the rules. They will be the
final arbiters of what are trackable transactions, and what are
not"
While the bankers were keen to protect their downside with respect
to enforcement, they stayed out of the debate over the legislation
itself. "We did not oppose the legislation." Says Fisher
"We think it's an appropriate issue for Congress to tackle.
We just wanted to make sure that banks wouldn't be burdened. We
are also very concerned when banks are asked to police social
issues, and that's something we want to discourage going forward."
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