Squire Sanders associates Andrea L. Marconi and Gregory A. Davis and partner Brian M. McQuaid co-authored the article "Facilitating Financial Transactions in the Age of Internet Gambling: Compliance with the Unlawful Internet Gambling Enforcement Act," which appeared in the July/August issue of The Banking Law Journal. In the article they examine the contents of the recently enacted regulations required by the Unlawful Internet Gambling Enforcement Act (UIGEA), including a discussion of which entities are required to comply with the UIGEA and those that are exempt from compliance, as well as the scope of the regulations' safe-harbor provision, which protects financial entities from liability for blocking restricted transactions as part of their UIGEA compliance obligations. The article then discusses recommended due diligence policies and procedures that financial transaction providers should consider implementing to comply with the regulations. The article also offers general suggestions for due diligence policies and procedures applicable to all financial transaction providers, regardless of the payment system the individual provider utilizes, and suggests unique procedures that are specific to each of the five payment systems identified in the regulations.
Reprinted with permission of The Banking Law Journal.