The Department of the Treasury and the Board of Governors of the Federal Reserve System have crafted a rule to prevent financial institutions and others from accepting payment for illegal Internet gambling activities.
The proposed rule was published in the Federal Register, and citizens and others interested in the measure have until Dec. 12 to file comments.
The proposed rule requires participants in designated payment systems to establish policies and procedures reasonably designed to identify and block or otherwise prevent or prohibit transactions in connection with unlawful Internet gambling, said the Treasury Department. These include payments made through credit cards, electronic funds transfers, and checks.
The two entities were required by the Unlawful Internet Gambling Enforcement Act to develop the rule. The Federal Reserve is the U.S. Central Bank.
For purposes of the proposed rule, unlawful Internet gambling generally would cover the making of a bet or
wager that involves use of the Internet and that is unlawful under any applicable federal or state law in the jurisdiction where the bet or wager is made, said the Treasury Department.
The proposed rule also exempts certain participants in designated payment systems from the requirements to establish such policies and procedures because the agencies believe it is not reasonably practical for those participants to identify and block, or otherwise prevent or prohibit, unlawful Internet gambling transactions restricted by the Act.
Those who wish to comment can go to the U.S. government regulatory Web site and search for the department and "Treas-DO-2007-0015." All comments and identifying information remain in the public record.
However, the document was not available Monday.
The proposed rule is part of the U.S. government's war against what it considers illegal gambling. The idea is to cut down the flow of funds to offshore gambling enterprises. In addition, the U.S. government has been arresting principals of gambling firms when they can reach them.
This is despite the fact that some firms are totally legal in jurisdictions such as England and Antigua.
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The proposed rule was published in the Federal Register, and citizens and others interested in the measure have until Dec. 12 to file comments.
The proposed rule requires participants in designated payment systems to establish policies and procedures reasonably designed to identify and block or otherwise prevent or prohibit transactions in connection with unlawful Internet gambling, said the Treasury Department. These include payments made through credit cards, electronic funds transfers, and checks.
The two entities were required by the Unlawful Internet Gambling Enforcement Act to develop the rule. The Federal Reserve is the U.S. Central Bank.
For purposes of the proposed rule, unlawful Internet gambling generally would cover the making of a bet or
wager that involves use of the Internet and that is unlawful under any applicable federal or state law in the jurisdiction where the bet or wager is made, said the Treasury Department.
The proposed rule also exempts certain participants in designated payment systems from the requirements to establish such policies and procedures because the agencies believe it is not reasonably practical for those participants to identify and block, or otherwise prevent or prohibit, unlawful Internet gambling transactions restricted by the Act.
Those who wish to comment can go to the U.S. government regulatory Web site and search for the department and "Treas-DO-2007-0015." All comments and identifying information remain in the public record.
However, the document was not available Monday.
The proposed rule is part of the U.S. government's war against what it considers illegal gambling. The idea is to cut down the flow of funds to offshore gambling enterprises. In addition, the U.S. government has been arresting principals of gambling firms when they can reach them.
This is despite the fact that some firms are totally legal in jurisdictions such as England and Antigua.
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