SOURCE: Press Release
(Washington, D.C.) — Credit union compliance with proposed rules to crack down on illegal online gambling would be difficult if not impossible, and the Credit Union National Association (CUNA) urged regulators to shelve their current plan.
"The law passed by Congress has commendable objectives, but is difficult to implement," CUNA wrote in a comment letter to the Treasury Department and Federal Reserve Board about their joint proposal to implement the Unlawful Internet Gambling Enforcement Act.
"We feel that rather than continue with implementation of the current proposal, which raises a range of problematic issues, the regulators should work together with Congress to develop an approach that will meet public policy goals in a clearly understood manner and without inflicting undue hardships on the financial institution sector in the process," CUNA said.
The Dec. 12 CUNA letter noted that President/CEO Dan Mica recently communicated his group's concerns with the Internet gambling proposal to House Financial Services Committee Chairman Barney Frank (D-Mass.).
In a letter to Frank, Mica urged a moratorium on actions to implement the law until "a more reasonable approach can be considered by Congress and the regulators."
CUNA identified the following problem areas in the joint agency plan:
The definition of "Unlawful Internet Gambling" is unclear;
The "Policies and Procedures" explanations should be expanded;
The "safe harbor" should be enlarged;
Enforcement provisions should be clarified; and
The effective date should be extended.