 Solid summary regarding recent regs....from a poster very familar with federal banks
"I worked for one of the federal banking regulatory agencies for many years. I have seen many bank regulations, and these are probably the weakest I have ever seen. There are loopholes in there big enough for a truck. For example, they are proposing to exempt all participants in the ACH systems, check collections systems, and wire transfer systems. The idea is that these systems do not have mechanisms to identify and block restricted transactions. Also, the government is not going to try to keep a list of prohibited businesses. They would have to determine if a particular business was engaged in illegal activities. Also, they would have to make sure a "legitimate" business was not accidentally included on the list. So, they aren't even going to try. If the government cannot identify these businesses, I don't see how your local bank will be able to identify them either. I am also suspicious abouth the six-month period before the regulations go into effect. Usually, they start 60 days or so after the comment period ends. Overall, my impression was that the banking regulatory agencies aren't very enthusiastic about trying to enforce this vague law. If they aren't enthusiastic, then neither will the banks. Personally, I was extremely happy when I read the regulation. I don't see where it is going to change much of anything."
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