UIGEA regulations to impose significant additional burdens to US payments system

According to a legislative and public policy advisory published by law firm Alston & Bird, the proposed UIGEA regulations will require all participants in the US payments system, including the ACH, card payments, check collection systems, money transmitting businesses and wire transfer systems, to prevent the processing of internet gambling transactions implementing policies and procedures similar to those required by the Bank Secrecy Act, with the risk of creating significant tension between domestic and financial institutions in foreign jurisdictions, where the blocked transactions may be legal.