Industry experts believe regulators will propose the financial services industry to adopt a “coding-and-blocking” system similar to the one many credit card companies have been voluntarily using for some time to identify and block internet gambling transactions.
This is definitely good news for the banking industry which was concerned about the compliance burdens and costs that would be imposed to identify and stop millions of transactions.
And it could end up as being good news for punters as well as it appears that groups representing US banking interests could lobby to get uncoded transactions, such as money transfers and third party e-wallets, exempted on the grounds that it woukd be extremely difficult to identify the use of the proceeds.
“If they find that the banks just don\’t have the technology to track and block these transactions, then we don\’t have to,\’\’ said Steve Verdier, director of congressional relations for the Independent Community Bankers of America, which represents 5,000 of America’s 8,000 community banks.
“The Fed and Treasury are not supposed to ask us to do the impossible,” he added.
Calculators
