Online Casino Ban Actually Helps Money Launderers
A gaming-law specialist says the blockage on online casino gambling payment deals may surge rather than obstruct money laundering.
One of the ambiguous causes given for the requirement of the UIGEA ban on payment processing to online casinos, the obstruction of money laundering. However, the actual effect of executing the problematical law may be to drive proceedings to shadier companies more likely to participate in money laundering.
Joseph M. Kelly, an specialist in gambling laws from Buffalo State University, told the Los Angeles Times that wresting founded and honest processors out of the online gambling transaction business may actually rise the risks of money laundering. Online casinos at present dealing with respectable firms will have no alternative but to use fewer scrupulous companies once the UIGEA is carried out on December 1st.
“You shrink respectable payment processors and supersede them with those who don’t leave a paper trail,” Kelly expressed of the effect of the UIGEA.
In addition, the paper mentions an executive from the American Bankers Association, who attested during Congressional hearing on the UIGEA that the law would have “no chance of practical victory” in fighting money laundering.
Specialists seem to approve that payments will still get handled, but with the added careless burden of straining the US financial system. As ABA spokespersons edged out, not only is the law requiring examination of over 93 billion deals handled, but awaits an impractical streamlining and efficient report between US banks and foreign banks ungoverned by the UIGEA.
