One of the dubious reasons given for the need of the UIGEA ban on payment processing to online casinos is the prevention of cash laundering. However the actual results of implementing the problematic law could also be to drive transactions to shadier companies likely to engage in money laundering.Joseph M. Kelly, a professional in gambling laws from Buffalo State University, told the l. a. Times that forcing established and honorable processors out of the net gambling transaction business may very well increase the risks of cash laundering. Online casinos currently coping with reputable firms can have no choice but to make use of less scrupulous companies once the UIGEA is implemented on December 1st.
"You diminish reputable payment processors and replace them with individuals who don't leave a paper trail," Kelly said of the effect of the UIGEA.
Further, the paper quotes an official from the yankee Bankers Association who testified during Congressional hearing at the UIGEA that the law would don't have any" prospect of practical success" in fighting money laundering.
Experts appear to agree that payments will still get processed, but with the added inadvertent burden of straining the U.S. economic system. As ABA spokesmen pointed out, not just is the law requiring examination of over 93 billion transactions processed, but expects an unrealistic streamlining and efficient communication between US banks and foreign banks ungoverned by the UIGEA.
Published on October 19, 2009 by EdBradley
Read More... [Source: UIGEA News]
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