BOOM! Neteller slams door on US customers

Filed in archive on January 17, 2007

In a move that surprised exactly no one, Neteller announced Wednesday evening that it would no longer accept transfers from US customers to or from online gambling sites.

This news was anticipated in the wake of the arrest this week of two cofounders of the e-wallet cmpany on money laundering charges. The six-month FBI investigation swept up Stephen Lawrence and John Lefebvre in separate moves in airports Monday.

Neteller also ceased accepting new US customers on Wednesday. According to the Neteller website, funds in US customers' Neteller accounts are still availabe for withdrawal. "US members who currently have funds in their e-wallet account may keep their funds safe in their account or are free to make withdrawals at any time they choose with a NETELLER Card. US members are not required to withdraw their funds from their NETELLER account."

This is the latest in a string of companies to flee the US market after the passage of the UIGEA last year. "The US government has recently introduced new legislation in the form of the Unlawful Internet Gambling Enforcement Act. To best protect the interests of NETELLER members, employees, shareholders and business partners, NETELLER will no longer provide service to US members to transfer funds to and from online gambling merchants."

I'll keep you posted on the news on this as it unfolds, and I'll keep you posted on the progress of the withdrawal I made last night from Neteller, which has yet to hit my bank account as of this writing.