The internet payment provider announced that it will comply with the Act and its related regulations as if it were subject to the Act’s jurisdiction. This action is intended to ensure that NETeller is able to continue to operate with the support of its principal commercial partners and to protect its shareholders, business partners, employees and reputation.
The Treasury and Federal Reserve are expected to issue the regulations financial transaction providers will be required to abide by within the next 270 days.
In the interim, NETeller said US-resident customers are able to use the service as normal. The funds are held in trust accounts and will be available for withdrawal, on demand, regardless of the customer’s location or ability to transfer to any site.
In separate news, ESI Entertainment Systems, parent company of Citadel Commerce, announced that it was not in a position to report its second quarter 2006 financial results on October 16 as required. The company filed with securities regulators in Canada a notice of its default. As a consequence, executives and other designated insiders of ESI will be prevented from trading in ESI securities.
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