Washington - U.S. banks will not be required to block payments by check from U.S. residents to online casinos as part of a new law that prohibits debit and credit cards' use in such transactions, according to new regulations proposed on Monday, Reuters reported.

The Treasury Department and Federal Reserve are working to implement the Unlawful Internet Gambling Enforcement Act signed into law by President Bush last year.

In outlining their new regulations, the agencies decided it was "not reasonably practical" to require banks to monitor and block their customers' payments by check and some other transfer types.

"At first blush it looks like they took a very practical and pragmatic approach. They did not ask us to do the impossible," Steve Kenneally, a spokesman for America's Community Bankers, told Reuters.

Related Links:
http://www.ustreas.gov/press/releases/hp583.htm

http://uk.reuters.com/article/UK_SMALLCAPSRPT/idUKN0143096420071001

http://www.treas.gov/press/releases/reports/noticeofproposedrule.pdf (PDF)