NAFCU supports barring Internet gambling regs

June 24, 2008 – NAFCU supports a bill that would bar implementation of the Unlawful Internet Gambling Enforcement Act of 2006, which would essentially turn financial institutions into law enforcement apparatuses, Dan Berger, NAFCU’s senior vice president of government affairs, told the House Financial Services Committee Monday.

Berger submitted his comments in a letter for today’s mark-up of HR. 5767, the Payment Systems Protection Act of 2008. Introduced by committee Chairman Barney Frank, D-Mass., the bill would prohibit Treasury and the Federal Reserve Board from issuing or implementing final rules under the statute.

Berger wrote that though credit unions remain “firmly committed” to help protect the financial system from threats posed by illicit and unlawful activity, NAFCU is concerned about the increasing degree of accountability being placed on financial institutions to police unlawful or immoral activities.

“NAFCU firmly believes that the primary responsibility of depository institutions is, and always should be, the safe and sound distribution of financial services and products and not the surveillance of consumers,” said Berger.

H.R. 5767 would require that financial institutions identify and block transactions that fund illegal gambling activities. Berger pointed out in the letter that no standardized system is in place at present to help institutions in these tasks.

“Were a system in place, the proper maintenance of this tool would be cost-prohibitive and an undue burden on financial institutions, such as federal credit unions that have limited resources to conduct these operations,” Berger wrote.

The mark-up is scheduled for 10 a.m.