The U.S. Attorney for the Eastern District of Missouri has alleged that eBay's PayPal has violated the Patriot Act (the "Act") by processing payments for online gambling. The Act was passed by Congress following the September 11, 2001 attacks. This legislation broadens law enforcement powers to combat money laundering that is suspected to finance terror attacks and also prohibits transmitting funds known to have come from a criminal offence, or that are intended to promote or support unlawful activities. The federal prosecutor is seeking to recover any money, plus interest, that the company received from online gambling merchants during a nine month period. Under the Act, PayPal could also be subject to criminal liability. In its latest annual report, eBay asserted that PayPal acted in good faith and that the company's actions were not a violation of the anti-terror laws.
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Summary by: Kiran Sah
E-TIPS® ISSUE
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