Barclays and Royal Bank of Scotland, two U.K. banks with close ties to the United States, will be advising their corporate customers to avoid taking Internet bets from the United States once the Unlawful Internet Gambling Enforcement Act (UIGEA) is signed into law as part of the SAFE Port Act. President George W. Bush is expected to approve the legislation Friday.
A Barclays spokesman told media that once the UIGEA has been signed into law, it will be illegal for online gaming companies to except payment in connection with Internet gambling, and the bank will contact customers to make sure they conduct their business in compliance with the legislation.
The Royal Bank of Scotland has also said it will take steps to ensure they are compliant with the legislation. Sources in the online gambling industry say that both banks may ask corporate customers to find new banking facilities if they don't close their U.S. operations.
Barclays has a large international presence in Europe, the United States, Africa, and Asia. Barclays Global Investors was named America's largest money manager by "Institutional Investor" in July.
One of the divisions of the Royal Bank of Scotland Group is the Citizens Financial Group based in Providence, R.I. As the eight largest commercial bank in the United States, it has more than 1,600 branches operating in 13 states with non-branch retail and commercial offices in about 40 states.
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