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Article of the week
UIGEA criticized as too ambiguous
The Congressional hearings into the viability of the existing Unlawful Internet Gambling Enforcement Act (UIGEA) this last April 2nd received extensive media coverage as delegates heard reasons why the law is, in fact, too ambiguous to effectively provide regulations to work with.
The actual regulations which are meant to govern UIGEA’s use by US authorities are still not in place. A preliminary draft is now undergoing public consultation.
During the April 2nd hearings, Federal Reserve and Treasury officials gave evidence that they were struggling to clarify the UIGEA rules because federal law is still vague about what type of gambling is illegal online.
During the hearings Congressman Luis Gutierrez, Chairman of the Subcommittee on Domestic and International Monetary Policy, Trade and Technology, said: «One of the most common complaints is that the proposed rules fail to sufficiently define key terms, leaving financial institutions with significant compliance difficulties.» He added: «For example, the regulation fails to adequately define what constitutes «unlawful Internet gambling» or a «restricted transaction,» yet requires the financial institutions to make a determination on their own about what is lawful or unlawful.
«Consumers will be placed at risk of having lawful transactions blocked. It is easy to see how these regulations, if implemented in their current form, could wreak havoc on electronic commerce in the U.S.»
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