Unlawful Internet Gambling

Whether you are an individual who engages in Internet betting or a business that processes these wagers, it is important to know what banks are now doing to ensure that these activities are not being conducted unlawfully. The Unlawful Internet Gambling Enforcement Act (UIGEA) requires banks to:

• Screen commercial customers at the time of account opening to establish the level of risk that the new account holder might be participating in restricted activities.

• Respond to reports from law enforcement or regulatory agencies that an account is processing restricted transactions and determine if such reports are accurate. If the transactions are illegal the bank must take appropriate action such as closing the account or prohibiting access to certain payment systems.

• Notify their commercial customers that illegal Internet gambling transactions are prohibited and cannot be processed through the bank.

• Establish policies and procedures to ensure that the requirements of the Act are followed.

For more information regarding UIGEA you may visit the following websites:

http://www.federalreserve.gov/bankinforeg/reglisting.htm#GG and click on Regulation/GPO

(or)

http://www.uigea.net/