US Regulation
US Fed, Treasury propose Internet gambling ban rule
WASHINGTON, Oct 1 (Reuters) - Banks, credit card firms and operators of other Internet payment systems would need to establish policies and procedures to identify and block transactions with unlawful Internet gambling sites under new federal regulations proposed on Monday.
The U.S. Treasury Department and the Federal Reserve released the proposal for rules to put into effect the Unlawful Internet Gambling Enforcement Act, which Congress passed last year.
The proposal requests public comment by Dec. 12, identifies the types of payment systems that must comply with the act, which was enacted in an effort to outlaw most forms of Internet gambling. It makes it illegal for banks and credit card companies to make payments to online gambling sites.
The proposed rule would require policies and procedures that are "reasonably designed to prevent payments being made to gambling businesses in connection with unlawful Internet gambling," the agencies said in a statement.
The rule describes examples of such policies and procedures but does not define illegal gambling activities or transactions because the underlying law defers to activities illegal under previously existing state and federal gambling regulations.
Download the proposed rule here
This article is a reprint from reuters.com. To see the original Article, click here
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