Saying credit unions would face additional compliance burdens, CUNA and NAFCU urged lawmakers to enact legislation to delay the implementation of a ban on Internet gambling for one year.
CUNA President/CEO Dan Mica wrote that the ban, which took effect on Tuesday, said their concerns with it focus on the "technological limitations and statutory ambiguity." He said the added burdens would "divert credit unions from their intended purpose of providing financial services to their members."
NAFCU President/CEO Fred Becker said the ban, "effectively deputizes credit unions and other financial institutions to guard against financial crimes."
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House Financial Services Committee Chairman Barney Frank (D-Mass.) introduced the legislation to delay implementation by a year and the panel held a hearing on it today. Mica and Becker expressed their concerns in letters to all members of the panel.
Last Friday, the Treasury Department and Federal Reserve announced that they were delaying the compliance until next June 1.
The bill, and the regulations that implemented it, ban transfers of money from financial institutions to gambling sites, but credit unions and banks complained that they would have to implement costly procedures to block restricted transactions.
Congress passed the bill in 2006.
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