Stricter EFT casino banking laws
By: Eric Richards, Monday November 5th 2012
It’s already been a big challenge for US players to play at online casinos, but as of recently, it looks like there will be even more challenges that might make it impossible for US players to gamble for real money online. While it’s still only speculation, it looks like there will be stricter controls put on electronic financial transfers. Currently, players in the US are able to get away with doing this because transfers only need to be reported if they are over $10,000 to the US Federal Government. The Obama administration recently announced that the same policy will be applied to each and every transaction made by EFT to international locations or within the States. The justification that has been provided is that it will help prevent money laundering and the financing of terrorism. Of course, this is also one of the justifications that has been used in passing UIGEA.
American players making transactions will be reported to the government, and that can pose a bit of a problem even if they aren’t technically doing anything illegal. Under the law, no financial service provider should be allowing a US player to make a transaction to an online casino. In doing so, they are subject to investigation and any players that have been associated with the transactions. As a player at an online casino this means that you’re sticking your neck out on the line to play. Many are upset about this change to the regulations, simply because it seems to be an invasion of privacy and takes control away from individuals and what they want to do with their finances.
US financial institutions have already started to complain that they are facing challenges in trying to meet the specific requirements under UIGEA. Under this new structure, banks and other lending institutions will have to report regularly and there is $30 million going into establishing this infrastructure. James H. Freis Jr., the director of the Financial Crimes Enforcement Network in the US Treasury Department, has recently said, "By establishing a centralized database, this regulatory plan will greatly assist law enforcement in detecting and ferreting out transnational organized crime, multinational drug cartels, terrorist financing and international tax evasion."
At a time when there is very little hope that there will be positive changes for US players, this isn’t good news. USA online casinos recently found out that the legislations that might bring back online gambling to the US have been pushed back and will not be reviewed by the Senate until after mid-term elections. This means players will b waiting quite a bit longer to determine if they’ll be able to get in on their favorite games without missing out on the fun. Where this particular legislation will lead has yet to be determined but it does definitely feel like another nail in the coffin!