One of the dubious reasons given for the necessity of the UIGEA ban on payment processing to online casinos is the prevention of money laundering. But the actual result of implementing the problematic law may be to drive transactions to shadier companies more likely to engage in money laundering.Joseph M. Kelly, an expert in gambling laws from Buffalo State University, told the Los Angeles Times that forcing established and honorable processors out of the online gambling transaction business may actually increase the dangers of money laundering. Online casinos currently dealing with reputable firms will have no choice but to use less scrupulous companies once the UIGEA is implemented on December 1st.
"You diminish reputable payment processors and replace them with those who don't leave a paper trail," Kelly said of the effect of the UIGEA.
Further, the paper quotes an official from the American Bankers Association who testified during Congressional hearing on the UIGEA that the law would have "no prospect of practical success" in fighting money laundering.
Experts seem to agree that payments will still get processed, but with the added inadvertent burden of straining the US financial system. As ABA spokesmen pointed out, not only 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
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[Source: UIGEA News]
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