Financial Times: Banks warn that UIGEA compliance will be impossible
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An article published today in the Financial Times captured the general attitude of the banking lobby toward the UIGEA - namely, that the industry finds the legislation unworkable in the current legal and political climate in the US.
The banking industry has generally been unsupportive of the UIGEA, primarily due to concerns about the cost enforcement would present to the industry as a whole and the lack of feasibility of said enforcement
Excerpt from the article, reprinted on MSN:
The Financial Services Roundtable, which represents dozens of banks and other financial services firms, said it was “very concerned” that adoption of the rules could impose “significant” and costly compliance burdens on banks.
“The statute and the proposed rule expand the role of financial institutions to police laws that are more appropriate for law enforcement agencies,” the Roundtable said in public filings to the Treasury and Federal Reserve.
The criticism raises new questions about whether regulators will be able to enforce a law that, in effect, requires banks and other institutions to know the purpose and legality of payments in an industry - online gambling - in which federal and state rules often conflict.
For a complete copy of the group’s official comments regarding the UIGEA, filed with the Department of the Treasury last week, click here.
To visit the Financial Services Roundtable, click here.
