Blocking Transfers at the Bank Level

Jeff76 · #1 10-18-2006, 10:27 AM

I am a software developer who works for a bank. One of the programs I'm familiar with (but don't actually work on) is the international wire transfer program. The way it works is there are these published lists that we compare wire transfers to, and if a match is found then the transfer is blocked. There is a list for online casinos and gambling (in addition to terrorists, etc.) Our particular bank hasn't been enforcing this block before, but the head of international department just contacted us to add checks for gambling/casions into the system.

I understand the banks were lobbying against this because they don't want further regulation. However, it seems to me a fairly easy task from an implementation standpoint. Am I missing something? Is it just that the banks didn't want the liablity in case the lists were incorrect, or is there some larger issue in view?

And I guess the big question in my mind is whether Neteller and similar companies will get on this published list. I have no idea about that- just a software guy. But I am curious as to how these lists are populated and what organization maintains them.

Indiana · #2 10-18-2006, 10:51 AM

[ QUOTE ]
I am a software developer who works for a bank. One of the programs I'm familiar with (but don't actually work on) is the international wire transfer program. The way it works is there are these published lists that we compare wire transfers to, and if a match is found then the transfer is blocked. There is a list for online casinos and gambling (in addition to terrorists, etc.) Our particular bank hasn't been enforcing this block before, but the head of international department just contacted us to add checks for gambling/casions into the system.

I understand the banks were lobbying against this because they don't want further regulation. However, it seems to me a fairly easy task from an implementation standpoint. Am I missing something? Is it just that the banks didn't want the liablity in case the lists were incorrect, or is there some larger issue in view?

And I guess the big question in my mind is whether Neteller and similar companies will get on this published list. I have no idea about that- just a software guy. But I am curious as to how these lists are populated and what organization maintains them.

[/ QUOTE ]

So what u need to do is "accidently" leave Neteller off the ban list. Seriously, put a virus out there man and mess it up real good.

Indy

CallYNotRaise06 · #3 10-18-2006, 10:55 AM

are wire trandfers used to put money on neteller? i dont use insta-cash, i use the 4-5 day transfer one that is free

Jeff76 · #4 10-18-2006, 11:02 AM

[ QUOTE ]
So what u need to do is "accidently" leave Neteller off the ban list. Seriously, put a virus out there man and mess it up real good.

[/ QUOTE ]LOL- I almost put a disclaimer out there to the effect I would NOT do this. [img]/images/graemlins/tongue.gif[/img]

Definitely -LifeEV

JPFisher55 · #5 10-18-2006, 11:04 AM

Wire transfers are not ACH (automated clearing house) transactions. They are actually accomplished by live persons not computers.

MiltonFriedman · #6 10-18-2006, 11:46 AM

Thanks for the insights.

"Is it just that the banks didn't want the liablity in case the lists were incorrect"

Under the likely regs, they will have nothing to worry about.

I am curious, are the prohibited gaming recepients identified by clear names, like PartyGaming or less known names like Blast Off Media, or whoever it was that just bought UB.

If you can say, .... is the list like 10 names, 100 names 1000 names ?

(Your Bank likely would not be handling a transfer from say, Neteller to Party, which would be entirely offshore. Settlements in USD or whatever can take place outside the Fed.)

Indiana · #7 10-18-2006, 11:48 AM

[ QUOTE ]
[ QUOTE ]
So what u need to do is "accidently" leave Neteller off the ban list. Seriously, put a virus out there man and mess it up real good.

[/ QUOTE ]LOL- I almost put a disclaimer out there to the effect I would NOT do this. [img]/images/graemlins/tongue.gif[/img]

Definitely -LifeEV

[/ QUOTE ]

I really think u need to consider sacrificing your life for our cause. Think of the broader community man.

Indy

Jeff76 · #8 10-18-2006, 11:52 AM

We don't have the list yet- I'll be very curious to look at it once we do. Our bank does not service individuals, so Gambling/Casinos haven't really been an issue.

Unfortunatly I know very little about this- just the technology involved, but absolutly nothing about the business works.

MagCFO · #9 10-18-2006, 12:51 PM

yeah, but what about ACH's? There was a quote from the head of some banking association that said the ACH is not set up for identifying and blocking transactions. Was not even possible without revamping the entire system.

As for where the money comes from, I get payments from all the sites pretty much on a weekly basis. I can tell you none of them come from the name of the site (i.e. I never get a payment from PartyPoker).

One of the most difficult things I had to learn when I just started the job was who in the world all these payments were coming from.

The sites aren't even trying to make it difficult at this point, and it still is. If they didn't want me to know where the money was coming from, I think it would be pretty easy to do.

Just my opinion of course.

pandemonium · #10 10-18-2006, 02:59 PM

[ QUOTE ]
I understand the banks were lobbying against this because they don't want further regulation. However, it seems to me a fairly easy task from an implementation standpoint. Am I missing something? Is it just that the banks didn't want the liablity in case the lists were incorrect, or is there some larger issue in view?

[/ QUOTE ]

Just because something is easy to do, doesn't necessarily mean anyone wants it done. With laws such as this, the government places banking institutions in the uncomfortable position of being quasi-agents, enforcing a police power. Most banks want to make money, not nanny their customers. What other transactions do you believe the government should require the banks to block (at, mind you, their own expense)? Long and short of it is, for the most part, regulatory compliance is an expense, not a revenue source, and regulations such as this can be quite expensive to comply with to the extent desired by the licensing authority. Think about that the next time you choose a small bank versus a national behemoth. That small bank has to comply with regulations A through CC, just like BoA, and this is one of the few reasons there are any economies of scale in the banking sector.

[ QUOTE ]
But I am curious as to how these lists are populated and what organization maintains them.

[/ QUOTE ]

All banks with a national charter fall under the regulatory authority of three distinct bodies: 1) the Dept. of the Treasury, 2) the Federal Reserve Board of Governers, 3) F.D.I.C. Lists of terrorist states are maintained by the Dept. of State and forwarded to the Dept. of the Treasury. An investigative body, FINCEN, is part of the Dept. of the Treasury and would probably be the group tasked with drawing up lists of gaming companies and their bank accounts, if it ever came to that.