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MUST READ! Protect your Rights!
Read the Insider for all the Bill Info!
There is a bill, HR 556, sponsored by Representative James A. Leach, that will prohibit the use of certain banking instruments for use in Internet Gambling. Today's edition of the insider is dedicated to educating you about this bill (there are two versions) and letting you know that in order to stop this bill from passing you need to voice your opinion. Please visit www.house.gov/writeup today and tell your representative that you are AGAINST this invasion of your privacy.
Please Also visit www.house.gov and scroll down to the search feature on the right hand side of the page. Put in HR 556 and familiarize yourself with the extent to which this bill WILL affect your life, not just your gambling rights.
The Committee on Financial Services, to whom was referred the bill by Mr. Leach (H.R. 556) to prevent the use of certain bank instruments for unlawful Internet gambling, and for other purposes, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. The vote to introduce the bill to the floor of the House (allowing it to be approved and moved on to the Senate for final approval): The Rules of the House of Representatives requires the Committee to list the record votes on the motion to report legislation and amendments thereto. A motion by Mr. Oxley to order the bill reported to the House with a favorable recommendation, with an amendment, was agreed to by a record vote of 34 yeas and 18 nays (Record vote no. 10). The names of Members voting for and against follow:
YEAS (For the bill) NAYS (Against It)
Mr. Oxley Mr. Baker
Mr. Leach Mr. Castle
Mrs. Roukema Mr. Ney
Mr. Bereuter Mr. Paul
Mr. Bachus Mr. LaTourette
Mr. Royce Mr. Ose
Mr. Lucas of Oklahoma Mr. Toomey
Mr. Gillmor Mr. Fossella
Mr. Ryun of Kansas Mr. Tiberi
Mr. Riley Mr. Frank
Mr. Manzullo Mr. Kanjorski
Mr. Green of Wisconsin Ms. Waters
Mr. Shays Mr. Watt of North Carolina
Mr. Gary G. Miller of Mr. Capuano
California Mr. Ford
Mr. Grucci Mr. Hinojosa
Ms. Hart Mr. Crowley
Mrs. Capito Mr. Clay
Mr. Ferguson
Mr. Rogers of Michigan
Mr. LaFalce
Mr. Sanders
Mrs. Maloney of New York
Mr. Bentsen
Mr. Maloney of Connecticut
Ms. Hooley of Oregon
Mr. Sherman
Mr. Sandlin
Mr. Meeks
Ms. Lee
Ms. Schakowsky
Mr. Moore
Mr. Gonzalez
Mr. Lucas of Kentucky
Mr. Israel
The Text of the Bill:
Unlawful Internet Gambling Funding Prohibition Act (Reported in House)
HR 556 RH
Union Calendar No. 220
107th CONGRESS
2d Session
H. R. 556
[Report No. 107-339, Part I]
To prevent the use of certain bank instruments for unlawful Internet gambling, and for other purposes. This should be a warning sign!
IN THE HOUSE OF REPRESENTATIVES
--------------------------------------------------------------------------------
A BILL
To prevent the use of certain bank instruments for unlawful Internet gambling, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Unlawful Internet Gambling Funding Prohibition Act'.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) Internet gambling is primarily funded through personal use of bank instruments, including credit cards and wire transfers.
(2) The National Gambling Impact Study Commission in 1999 recommended the passage of legislation to prohibit wire transfers to Internet gambling sites or the banks which represent them.
(3) Internet gambling is a major cause of debt collection problems for insured depository institutions and the consumer credit industry.
(4) Internet gambling conducted through offshore jurisdictions has been identified by United States law enforcement officials as a significant money laundering vulnerability.
SEC. 3. PROHIBITION ON ACCEPTANCE OF ANY BANK INSTRUMENT FOR UNLAWFUL INTERNET GAMBLING.
(a) IN GENERAL- No person engaged in the business of betting or wagering may knowingly accept, in connection with the participation of another person in unlawful Internet gambling--
(1) credit, or the proceeds of credit, extended to or on behalf of such other person (including credit extended through the use of a credit card);
(2) an electronic fund transfer or funds transmitted by or through a money transmitting business, or the proceeds of an electronic fund transfer or money transmitting service, from or on behalf of the other person;
(3) any check, draft, or similar instrument which is drawn by or on behalf of the other person and is drawn on or payable at or through any financial institution; or
(4) the proceeds of any other form of financial transaction as the Secretary may prescribe by regulation which involves a financial institution as a payor or financial intermediary on behalf of or for the benefit of the other person.
(b) DEFINITIONS- For purposes of this Act, the following definitions shall apply:
(1) BETS OR WAGERS- The term `bets or wagers'--
(A) means the staking or risking by any person of something of value upon the outcome of a contest of others, a sporting event, or a game subject to chance, upon an agreement or understanding that the person or another person will receive something of greater value than the amount staked or risked in the event of a certain outcome;
(B) includes the purchase of a chance or opportunity to win a lottery or other prize (which opportunity to win is predominantly subject to chance);
(C) includes any scheme of a type described in section 3702 of title 28, United States Code;
(D) includes any instructions or information pertaining to the establishment or movement of funds in an account by the bettor or customer with the business of betting or wagering; and
(E) does not include--
(i) any activity governed by the securities laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934) for the purchase or sale of securities (as that term is defined in section 3(a)(10) of such Act);
(ii) any transaction conducted on or subject to the rules of a registered entity or exempt board of trade pursuant to the Commodity Exchange Act;
(iii) any over-the-counter derivative instrument;
(iv) any other transaction that is exempt from State gaming or bucket shop laws under section 12(e) of the Commodity Exchange Act or section 28(a) of the Securities Exchange Act of 1934;
(v) any contract of indemnity or guarantee;
(vi) any contract for insurance;
(vii) any deposit or other transaction with a depository institution (as defined in section 3(c) of the Federal Deposit Insurance Act);
(viii) any participation in a simulation sports game or an educational game or contest that--
(I) is not dependent solely on the outcome of any single sporting event or nonparticipant's singular individual performance in any single sporting event;
(II) has an outcome that reflects the relative knowledge and skill of the participants with such outcome determined predominantly by accumulated statistical results of sporting events; and
(III) offers a prize or award to a participant that is established in advance of the game or contest and is not determined by the number of participants or the amount of any fees paid by those participants; and
(ix) any transaction authorized under State law with a business licensed or authorized by a State.
(2) BUSINESS OF BETTING OR WAGERING- The term `business of betting or wagering' does not include, other than for purposes of subsection (e), any creditor, credit card issuer, insured depository institution, financial institution, operator of a terminal at which an electronic fund transfer may be initiated, money transmitting business, or international, national, regional, or local network utilized to effect a credit transaction, electronic fund transfer, stored value product transaction, or money transmitting service, or any participant in such network, or any interactive computer service or telecommunications service.
(3) INTERNET- The term `Internet' means the international computer network of interoperable packet switched data networks.
(4) UNLAWFUL INTERNET GAMBLING- The term `unlawful Internet gambling' means to place, receive, or otherwise transmit a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the State in which the bet or wager is initiated, received, or otherwise made.
(5) OTHER TERMS-
(A) CREDIT; CREDITOR; AND CREDIT CARD- The terms `credit', `creditor', and `credit card' have the meanings given such terms in section 103 of the Truth in Lending Act.
(B) ELECTRONIC FUND TRANSFER- The term `electronic fund transfer'--
(i) has the meaning given such term in section 903 of the Electronic Fund Transfer Act; and
(ii) includes any fund transfer covered by Article 4A of the Uniform Commercial Code, as in effect in any State.
(C) FINANCIAL INSTITUTION- The term `financial institution' has the meaning given such term in section 903 of the Electronic Fund Transfer Act.
(D) MONEY TRANSMITTING BUSINESS AND MONEY TRANSMITTING SERVICE- The terms `money transmitting business' and `money transmitting service' have the meanings given such terms in section 5330(d) of title 31, United States Code.
(E) SECRETARY- The term `Secretary' means the Secretary of the Treasury.
(c) CIVIL REMEDIES-
(1) JURISDICTION- The district courts of the United States shall have original and exclusive jurisdiction to prevent and restrain violations of this section by issuing appropriate orders in accordance with this section, regardless of whether a prosecution has been initiated under this section.
(2) PROCEEDINGS-
(A) INSTITUTION BY FEDERAL GOVERNMENT-
(i) IN GENERAL- The United States, acting through the Attorney General, may institute proceedings under this subsection
to prevent or restrain a violation of this section.
(ii) RELIEF- Upon application of the United States under this subparagraph, the district court may enter a preliminary injunction or an injunction against any person to prevent or restrain a violation of this section, in accordance with Rule 65 of the Federal Rules of Civil Procedure.
(B) INSTITUTION BY STATE ATTORNEY GENERAL-
(i) IN GENERAL- The attorney general of a State (or other appropriate State official) in which a violation of this section allegedly has occurred or will occur may institute proceedings under this subsection to prevent or restrain the violation.
(ii) RELIEF- Upon application of the attorney general (or other appropriate State official) of an affected State under this subparagraph, the district court may enter a preliminary injunction or an injunction against any person to prevent or restrain a violation of this section, in accordance with Rule 65 of the Federal Rules of Civil Procedure.
(C) INDIAN LANDS-
(i) IN GENERAL- Notwithstanding subparagraphs (A) and (B), for a violation that is alleged to have occurred, or may occur, on Indian lands (as that term is defined in section 4 of the Indian Gaming Regulatory Act)--
(I) the United States shall have the enforcement authority provided under subparagraph (A); and
(II) the enforcement authorities specified in an applicable Tribal-State compact negotiated under section 11 of the Indian Gaming Regulatory Act shall be carried out in accordance with that compact.
(ii) RULE OF CONSTRUCTION- No provision of this section shall be construed as altering, superseding, or otherwise affecting the application of the Indian Gaming Regulatory Act.
(D) BANKING REGULATORS- Before initiating any proceeding under this paragraph with respect to a violation or potential violation of subsection (e) by an insured depository institution (as defined in section 3 of the Federal Deposit Insurance Act), the Attorney General of the United States or an attorney general of a State (or other appropriate State official) shall--
(i) notify the appropriate Federal banking agency (as defined in such section) of such violation or potential violation; and
(ii) allow such agency a reasonable time to issue an order to such insured depository institution under section 8(x) of the Federal Deposit Insurance Act.
(3) EXPEDITED PROCEEDINGS- In addition to any proceeding under paragraph (2), a district court may, in exigent circumstances, enter a temporary restraining order against a person alleged to be in violation of this section upon application of the United States under paragraph (2)(A), or the attorney general (or other appropriate State official) of an affected State under paragraph (2)(B), in accordance with Rule 65(b) of the Federal Rules of Civil Procedure.
(4) LIMITATION- No provision of this section shall be construed as authorizing an injunction against an interactive computer service (as defined in section 230(f) of the Communications Act of 1934) unless such interactive computer service is acting in concert or participation with a person who violates this section and such service receives actual notice of the order.
(d) CRIMINAL PENALTY-
(1) IN GENERAL- Whoever violates this section shall be fined under title 18, United States Code, or imprisoned for not more than 5 years, or both.
(2) PERMANENT INJUNCTION- Upon conviction of a person under this subsection, the court may enter a permanent injunction enjoining such person from placing, receiving, or otherwise making illegal bets or wagers or sending, receiving, or inviting information assisting in the placing of bets or wagers.
(e) CIRCUMVENTIONS PROHIBITED- Notwithstanding subsection (b)(2), a creditor, credit card issuer, financial institution, operator of a terminal at which an electronic fund transfer may be initiated, money transmitting business, or international, national, regional, or local network utilized to effect a credit transaction, electronic fund transfer, or money transmitting service, or any participant in such network, or any interactive computer service or telecommunications service, may be liable under this section
if such creditor, issuer, institution, operator, business, network, or participant has actual knowledge and control of bets and wagers and--
(1) operates, manages, supervises, or directs an Internet website at which unlawful bets or wagers may be placed, received, or otherwise made or at which unlawful bets or wagers are offered to be placed, received, or otherwise made; or
(2) owns or controls, or is owned or controlled by, any person who operates, manages, supervises, or directs an Internet website at which unlawful bets or wagers may be placed, received, or otherwise made or at which unlawful bets or wagers are offered to be placed, received, or otherwise made.
(f) ENFORCEMENT ACTIONS- Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended by adding at the end the following new subsection:
`(x) DEPOSITORY INSTITUTION INVOLVEMENT IN INTERNET GAMBLING- If any appropriate Federal banking agency determines that any insured depository institution is engaged in any of the following activities, the agency may issue an order to such institution prohibiting such institution from continuing to engage in any of the following activities:
`(1) Extending credit, or facilitating an extension of credit, electronic fund transfer, or money transmitting service with the actual knowledge that any person is violating section 3(a) of the Unlawful Internet Gambling Funding Prohibition Act in connection with such extension of credit, electronic fund transfer, or money transmitting service.
`(2) Paying, transferring, or collecting on any check, draft, or other instrument drawn on any depository institution with the actual knowledge that any person is violating section 3(a) of the Unlawful Internet Gambling Funding Prohibition Act in connection with such check, draft, or other instrument.'.
SEC. 4. INTERNET GAMBLING IN OR THROUGH FOREIGN JURISDICTIONS.
(a) IN GENERAL- In deliberations between the United States Government and any other country on money laundering, corruption, and crime issues, the United States Government should--
(1) encourage cooperation by foreign governments and relevant international fora in identifying whether Internet gambling operations are being used for money laundering, corruption, or other crimes;
(2) advance policies that promote the cooperation of foreign governments, through information sharing or other measures, in the enforcement of this Act; and
(3) encourage the Financial Action Task Force on Money Laundering, in its annual report on money laundering typologies, to study the extent to which Internet gambling operations are being used for money laundering.
(b) REPORT REQUIRED- The Secretary of the Treasury shall submit an annual report to the Congress on the deliberations between the United States and other countries on issues relating to Internet gambling.
Read the Insider for all the Bill Info!
There is a bill, HR 556, sponsored by Representative James A. Leach, that will prohibit the use of certain banking instruments for use in Internet Gambling. Today's edition of the insider is dedicated to educating you about this bill (there are two versions) and letting you know that in order to stop this bill from passing you need to voice your opinion. Please visit www.house.gov/writeup today and tell your representative that you are AGAINST this invasion of your privacy.
Please Also visit www.house.gov and scroll down to the search feature on the right hand side of the page. Put in HR 556 and familiarize yourself with the extent to which this bill WILL affect your life, not just your gambling rights.
The Committee on Financial Services, to whom was referred the bill by Mr. Leach (H.R. 556) to prevent the use of certain bank instruments for unlawful Internet gambling, and for other purposes, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. The vote to introduce the bill to the floor of the House (allowing it to be approved and moved on to the Senate for final approval): The Rules of the House of Representatives requires the Committee to list the record votes on the motion to report legislation and amendments thereto. A motion by Mr. Oxley to order the bill reported to the House with a favorable recommendation, with an amendment, was agreed to by a record vote of 34 yeas and 18 nays (Record vote no. 10). The names of Members voting for and against follow:
YEAS (For the bill) NAYS (Against It)
Mr. Oxley Mr. Baker
Mr. Leach Mr. Castle
Mrs. Roukema Mr. Ney
Mr. Bereuter Mr. Paul
Mr. Bachus Mr. LaTourette
Mr. Royce Mr. Ose
Mr. Lucas of Oklahoma Mr. Toomey
Mr. Gillmor Mr. Fossella
Mr. Ryun of Kansas Mr. Tiberi
Mr. Riley Mr. Frank
Mr. Manzullo Mr. Kanjorski
Mr. Green of Wisconsin Ms. Waters
Mr. Shays Mr. Watt of North Carolina
Mr. Gary G. Miller of Mr. Capuano
California Mr. Ford
Mr. Grucci Mr. Hinojosa
Ms. Hart Mr. Crowley
Mrs. Capito Mr. Clay
Mr. Ferguson
Mr. Rogers of Michigan
Mr. LaFalce
Mr. Sanders
Mrs. Maloney of New York
Mr. Bentsen
Mr. Maloney of Connecticut
Ms. Hooley of Oregon
Mr. Sherman
Mr. Sandlin
Mr. Meeks
Ms. Lee
Ms. Schakowsky
Mr. Moore
Mr. Gonzalez
Mr. Lucas of Kentucky
Mr. Israel
The Text of the Bill:
Unlawful Internet Gambling Funding Prohibition Act (Reported in House)
HR 556 RH
Union Calendar No. 220
107th CONGRESS
2d Session
H. R. 556
[Report No. 107-339, Part I]
To prevent the use of certain bank instruments for unlawful Internet gambling, and for other purposes. This should be a warning sign!
IN THE HOUSE OF REPRESENTATIVES
--------------------------------------------------------------------------------
A BILL
To prevent the use of certain bank instruments for unlawful Internet gambling, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Unlawful Internet Gambling Funding Prohibition Act'.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) Internet gambling is primarily funded through personal use of bank instruments, including credit cards and wire transfers.
(2) The National Gambling Impact Study Commission in 1999 recommended the passage of legislation to prohibit wire transfers to Internet gambling sites or the banks which represent them.
(3) Internet gambling is a major cause of debt collection problems for insured depository institutions and the consumer credit industry.
(4) Internet gambling conducted through offshore jurisdictions has been identified by United States law enforcement officials as a significant money laundering vulnerability.
SEC. 3. PROHIBITION ON ACCEPTANCE OF ANY BANK INSTRUMENT FOR UNLAWFUL INTERNET GAMBLING.
(a) IN GENERAL- No person engaged in the business of betting or wagering may knowingly accept, in connection with the participation of another person in unlawful Internet gambling--
(1) credit, or the proceeds of credit, extended to or on behalf of such other person (including credit extended through the use of a credit card);
(2) an electronic fund transfer or funds transmitted by or through a money transmitting business, or the proceeds of an electronic fund transfer or money transmitting service, from or on behalf of the other person;
(3) any check, draft, or similar instrument which is drawn by or on behalf of the other person and is drawn on or payable at or through any financial institution; or
(4) the proceeds of any other form of financial transaction as the Secretary may prescribe by regulation which involves a financial institution as a payor or financial intermediary on behalf of or for the benefit of the other person.
(b) DEFINITIONS- For purposes of this Act, the following definitions shall apply:
(1) BETS OR WAGERS- The term `bets or wagers'--
(A) means the staking or risking by any person of something of value upon the outcome of a contest of others, a sporting event, or a game subject to chance, upon an agreement or understanding that the person or another person will receive something of greater value than the amount staked or risked in the event of a certain outcome;
(B) includes the purchase of a chance or opportunity to win a lottery or other prize (which opportunity to win is predominantly subject to chance);
(C) includes any scheme of a type described in section 3702 of title 28, United States Code;
(D) includes any instructions or information pertaining to the establishment or movement of funds in an account by the bettor or customer with the business of betting or wagering; and
(E) does not include--
(i) any activity governed by the securities laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934) for the purchase or sale of securities (as that term is defined in section 3(a)(10) of such Act);
(ii) any transaction conducted on or subject to the rules of a registered entity or exempt board of trade pursuant to the Commodity Exchange Act;
(iii) any over-the-counter derivative instrument;
(iv) any other transaction that is exempt from State gaming or bucket shop laws under section 12(e) of the Commodity Exchange Act or section 28(a) of the Securities Exchange Act of 1934;
(v) any contract of indemnity or guarantee;
(vi) any contract for insurance;
(vii) any deposit or other transaction with a depository institution (as defined in section 3(c) of the Federal Deposit Insurance Act);
(viii) any participation in a simulation sports game or an educational game or contest that--
(I) is not dependent solely on the outcome of any single sporting event or nonparticipant's singular individual performance in any single sporting event;
(II) has an outcome that reflects the relative knowledge and skill of the participants with such outcome determined predominantly by accumulated statistical results of sporting events; and
(III) offers a prize or award to a participant that is established in advance of the game or contest and is not determined by the number of participants or the amount of any fees paid by those participants; and
(ix) any transaction authorized under State law with a business licensed or authorized by a State.
(2) BUSINESS OF BETTING OR WAGERING- The term `business of betting or wagering' does not include, other than for purposes of subsection (e), any creditor, credit card issuer, insured depository institution, financial institution, operator of a terminal at which an electronic fund transfer may be initiated, money transmitting business, or international, national, regional, or local network utilized to effect a credit transaction, electronic fund transfer, stored value product transaction, or money transmitting service, or any participant in such network, or any interactive computer service or telecommunications service.
(3) INTERNET- The term `Internet' means the international computer network of interoperable packet switched data networks.
(4) UNLAWFUL INTERNET GAMBLING- The term `unlawful Internet gambling' means to place, receive, or otherwise transmit a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the State in which the bet or wager is initiated, received, or otherwise made.
(5) OTHER TERMS-
(A) CREDIT; CREDITOR; AND CREDIT CARD- The terms `credit', `creditor', and `credit card' have the meanings given such terms in section 103 of the Truth in Lending Act.
(B) ELECTRONIC FUND TRANSFER- The term `electronic fund transfer'--
(i) has the meaning given such term in section 903 of the Electronic Fund Transfer Act; and
(ii) includes any fund transfer covered by Article 4A of the Uniform Commercial Code, as in effect in any State.
(C) FINANCIAL INSTITUTION- The term `financial institution' has the meaning given such term in section 903 of the Electronic Fund Transfer Act.
(D) MONEY TRANSMITTING BUSINESS AND MONEY TRANSMITTING SERVICE- The terms `money transmitting business' and `money transmitting service' have the meanings given such terms in section 5330(d) of title 31, United States Code.
(E) SECRETARY- The term `Secretary' means the Secretary of the Treasury.
(c) CIVIL REMEDIES-
(1) JURISDICTION- The district courts of the United States shall have original and exclusive jurisdiction to prevent and restrain violations of this section by issuing appropriate orders in accordance with this section, regardless of whether a prosecution has been initiated under this section.
(2) PROCEEDINGS-
(A) INSTITUTION BY FEDERAL GOVERNMENT-
(i) IN GENERAL- The United States, acting through the Attorney General, may institute proceedings under this subsection
to prevent or restrain a violation of this section.
(ii) RELIEF- Upon application of the United States under this subparagraph, the district court may enter a preliminary injunction or an injunction against any person to prevent or restrain a violation of this section, in accordance with Rule 65 of the Federal Rules of Civil Procedure.
(B) INSTITUTION BY STATE ATTORNEY GENERAL-
(i) IN GENERAL- The attorney general of a State (or other appropriate State official) in which a violation of this section allegedly has occurred or will occur may institute proceedings under this subsection to prevent or restrain the violation.
(ii) RELIEF- Upon application of the attorney general (or other appropriate State official) of an affected State under this subparagraph, the district court may enter a preliminary injunction or an injunction against any person to prevent or restrain a violation of this section, in accordance with Rule 65 of the Federal Rules of Civil Procedure.
(C) INDIAN LANDS-
(i) IN GENERAL- Notwithstanding subparagraphs (A) and (B), for a violation that is alleged to have occurred, or may occur, on Indian lands (as that term is defined in section 4 of the Indian Gaming Regulatory Act)--
(I) the United States shall have the enforcement authority provided under subparagraph (A); and
(II) the enforcement authorities specified in an applicable Tribal-State compact negotiated under section 11 of the Indian Gaming Regulatory Act shall be carried out in accordance with that compact.
(ii) RULE OF CONSTRUCTION- No provision of this section shall be construed as altering, superseding, or otherwise affecting the application of the Indian Gaming Regulatory Act.
(D) BANKING REGULATORS- Before initiating any proceeding under this paragraph with respect to a violation or potential violation of subsection (e) by an insured depository institution (as defined in section 3 of the Federal Deposit Insurance Act), the Attorney General of the United States or an attorney general of a State (or other appropriate State official) shall--
(i) notify the appropriate Federal banking agency (as defined in such section) of such violation or potential violation; and
(ii) allow such agency a reasonable time to issue an order to such insured depository institution under section 8(x) of the Federal Deposit Insurance Act.
(3) EXPEDITED PROCEEDINGS- In addition to any proceeding under paragraph (2), a district court may, in exigent circumstances, enter a temporary restraining order against a person alleged to be in violation of this section upon application of the United States under paragraph (2)(A), or the attorney general (or other appropriate State official) of an affected State under paragraph (2)(B), in accordance with Rule 65(b) of the Federal Rules of Civil Procedure.
(4) LIMITATION- No provision of this section shall be construed as authorizing an injunction against an interactive computer service (as defined in section 230(f) of the Communications Act of 1934) unless such interactive computer service is acting in concert or participation with a person who violates this section and such service receives actual notice of the order.
(d) CRIMINAL PENALTY-
(1) IN GENERAL- Whoever violates this section shall be fined under title 18, United States Code, or imprisoned for not more than 5 years, or both.
(2) PERMANENT INJUNCTION- Upon conviction of a person under this subsection, the court may enter a permanent injunction enjoining such person from placing, receiving, or otherwise making illegal bets or wagers or sending, receiving, or inviting information assisting in the placing of bets or wagers.
(e) CIRCUMVENTIONS PROHIBITED- Notwithstanding subsection (b)(2), a creditor, credit card issuer, financial institution, operator of a terminal at which an electronic fund transfer may be initiated, money transmitting business, or international, national, regional, or local network utilized to effect a credit transaction, electronic fund transfer, or money transmitting service, or any participant in such network, or any interactive computer service or telecommunications service, may be liable under this section
if such creditor, issuer, institution, operator, business, network, or participant has actual knowledge and control of bets and wagers and--
(1) operates, manages, supervises, or directs an Internet website at which unlawful bets or wagers may be placed, received, or otherwise made or at which unlawful bets or wagers are offered to be placed, received, or otherwise made; or
(2) owns or controls, or is owned or controlled by, any person who operates, manages, supervises, or directs an Internet website at which unlawful bets or wagers may be placed, received, or otherwise made or at which unlawful bets or wagers are offered to be placed, received, or otherwise made.
(f) ENFORCEMENT ACTIONS- Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended by adding at the end the following new subsection:
`(x) DEPOSITORY INSTITUTION INVOLVEMENT IN INTERNET GAMBLING- If any appropriate Federal banking agency determines that any insured depository institution is engaged in any of the following activities, the agency may issue an order to such institution prohibiting such institution from continuing to engage in any of the following activities:
`(1) Extending credit, or facilitating an extension of credit, electronic fund transfer, or money transmitting service with the actual knowledge that any person is violating section 3(a) of the Unlawful Internet Gambling Funding Prohibition Act in connection with such extension of credit, electronic fund transfer, or money transmitting service.
`(2) Paying, transferring, or collecting on any check, draft, or other instrument drawn on any depository institution with the actual knowledge that any person is violating section 3(a) of the Unlawful Internet Gambling Funding Prohibition Act in connection with such check, draft, or other instrument.'.
SEC. 4. INTERNET GAMBLING IN OR THROUGH FOREIGN JURISDICTIONS.
(a) IN GENERAL- In deliberations between the United States Government and any other country on money laundering, corruption, and crime issues, the United States Government should--
(1) encourage cooperation by foreign governments and relevant international fora in identifying whether Internet gambling operations are being used for money laundering, corruption, or other crimes;
(2) advance policies that promote the cooperation of foreign governments, through information sharing or other measures, in the enforcement of this Act; and
(3) encourage the Financial Action Task Force on Money Laundering, in its annual report on money laundering typologies, to study the extent to which Internet gambling operations are being used for money laundering.
(b) REPORT REQUIRED- The Secretary of the Treasury shall submit an annual report to the Congress on the deliberations between the United States and other countries on issues relating to Internet gambling.
Read the Insider for all the Bill Info!