US Banks at risk for prosecution with new law ?

"the unlawful US internet gambling act of 2006" has given prosecutors the ammo they need to go after the money processors (neteller, firepay, etc). the neteller guys made the mistake of stepping foot onto US soil and were swiftly arrested. My guess is that the US D.O.J. is watching every move the chairmen make at the currently operational processing outfits that are still bold enough to be taking deposits from US citizens. If those chairmen step foot in the US, they will be arrested as well I am sure. Perhaps the coming months may show other countries , like Canada for example, working with the US and placing some heat on processors in their own countries to stop the processors from taking deposits from US banks. We probably won't know who put the heat on whom or who cut a deal with who, but I can see other countries obliging the US behind closed doors.

I am a little confused how the US banks are escaping the DOJ right now though. On a daily basis, US banks are processing deposits to these allegedly illegal processing companies in other countries (as per the US D.O.J.'s interpretation of October 2006's "unlawful US internet gambling Act") whose only viable merchants are gambling institutions. (how many posters have been asking where else to spend neteller dollars - 99% gambling related as are all the other processors). The DOJ could easily step into the innerworkings of banks all over the US and audit transactions with these processors. The fines and penalties would be astronomical if the DOJ can show evidence that the banks are turning the other cheek in establishing relationships with the alledgedly illicit processors. In essence, the US banks could be interpreted to be facilitating wagers just as much as the processors.... which is what the Oct 2006 act was all about stopping and making unlawful.

I am guessing that if and when the banks begin to feel any heat or have to endure audits from the DOJ of all dealings with these processors, then US gamblers will offically be shut out. I am just amazed that the DOJ hasn't started arresting US bank chairmen yet. The papertrail starts with them in most offshore transactions.

Sorry to startle anyone with this post. It's just my interpretation of what may be around the corner and this seems to be an appropriate forum to air it out.

Until the regs are written and the training in place they wont go after the banks. This was stated from the start. Its where that 270 days bullshit comes in. The banks have not the slightest clue what to do on a mass level. Few outside of the DOJ knows what UIGEA says or what methods the Gov will come up with to help the banks enforce this. This includes the idiots who wrote the law by the midnight oil.

Its a double standard for sure when you factor in the NT bullshit, but until the feds instruct the banks on what to do, theres not much that will happen to them.

Bankers got the criminal clauses taken out of the new laws.

NT was charged with money laundering. I suppose you could charge banks with money laundering, but it will never ever happen. If the DOJ put BOA and Citi out of business,they would have to pay like a trillion dollars in FDIC insurance...

Could banks be charged? Sure.

Who will be first? Prob BOA where a few years ago,you could walk in and deposit cash directly to your neteller acct. Likely the bank will just pay $10 or $20 million and agree not to contest without admitting guilt.

Then their fees go up.

Sean

good insight guys - makes sense. though i still believe the banks can't be completely clean if they were actually audited right now. i expect there has to be documentation as to the nature of these processors on file with banks everywhere. Maybe it's a small folder somewhere and maybe it's huge... I have no idea... but if the DOJ were to uncover such evidence that the banks are knowingly faciliatating these transactions, I think it's possible that the could use the unlawful internet gambling act to move forward with prosecutions and indictments. This doesn't seem likely given that built in 270 day window you mentioned for tweaks and clarity, but in the right situation... if the chips fell a certain way, if the banks were blatantly looking past that Oct 2006 ACT and it was evidenced in a court of law... well, anything is possible. Most likely we will see penalties and fines after day 270 as banks try to navigate the murky waters.

having read a few more replies after typing the above... i would have to agree that the fed's chasing US banks doesn't seem lilkely. you all make great points.

Thanks for the reply and feedback

What about banks that allow incoming funds, but no outgoing funds via any type of "neteller incognito" or whatever the name of the week might be for outgoing funds. But continue to allow incoming funds via check from whoever? I'm a little player but I may need my funds at some point; so am worried like others here.

The DOJ, the Federal Government, and all state governments have no interest in putting US banks in harms way.

The economy needs US banks.

You start indicting CEOs and the stock market would plummet, taxes plummet, etc.

This whole war on gambling is about blocking anonymous banks. No one gives a shit if you bet $1000 on the Bears. The US banks work with the government to report suspicious activity. You laugh, but how many terrorists have been picked off by banks? ALOT.

Sean

sean1 said:

The DOJ, the Federal Government, and all state governments have no interest in putting US banks in harms way.

The economy needs US banks.

You start indicting CEOs and the stock market would plummet, taxes plummet, etc.

This whole war on gambling is about blocking anonymous banks. No one gives a shit if you bet $1000 on the Bears. The US banks work with the government to report suspicious activity. You laugh, but how many terrorists have been picked off by banks? ALOT.

Sean

Click to expand...

You are the most amazing poster on earth. Not good not bad...just amazing.

sean1 said:

The DOJ, the Federal Government, and all state governments have no interest in putting US banks in harms way.

The economy needs US banks.

You start indicting CEOs and the stock market would plummet, taxes plummet, etc.

Click to expand...

On the lighter side... every industry has a weak link, a black sheep so to speak... here is the fed's chance to take that bank they hate behind the woodshed and whoop some ass. Just to make an example out of them and scare everyone else a little. who's it gonna be? which bank is the bytch of the group. the red headed stepkid always with snot running. lol. which bank does that describe ..

sean... have you seen this post ?


http://forum.therx.com/showthread.php?t=450927

"the unlawful US internet gambling act of 2006" has given prosecutors the ammo they need to go after the money processors (neteller, firepay, etc). the neteller guys made the mistake of stepping foot onto US soil and were swiftly arrested.

The cases against these guys would have started well before the new law.