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La Nacion Article on Sportsbook Bank Account Closings
Article from La Nacion Newspaper in San Jose Costa Rica
By:Gustavo Jiménez M.
Redactor de la Nación
Bank Justifies Action for "Preventative Reasons"
Using a directive issued by the Board of directors two weeks ago, Banco Nacional closed all bank accounts held by sportsbooks. A high ranking bank offical indicated that the decision was made in order to protect the bank from possible risks which could be incurred when having a business relationship with sportsbooks (which are prohibited in some areas of the United States).
In the evening an official press release from the office of Public Relations was distributed ratifying the closing of the accounts, adding that this is a power allowed under Bank Article 616 of the commerce code.
These businesses (Sportsbooks) reside on the World Wide Web and receive bets on sports events through those webistes and on the telephone, in offices that are located in Costa Rica. It is estimated that between 100 and 200 of these places operate in this country.
Yesterday, it was not possible to locate Eduardo Agami, representative of a Sportsbook--SBG--and president of an association involving these businesses, so a director of the BNCR was contacted for further discussion. During BNCR's arguments, I mentioned a law of the United States known as the Patriot Act, that authorizes the authorities of that country to close accounts and to confiscate foreign monies deposited in if unusual activity is suspected and if the banks correspond with North American financial organizations.
In case of sportsbooks, BNCR alleges that in the state of Florida, where there is a seat of the International Bank of Costa Rica (BICSA, that belongs to BNCR), bets are illegal. To allow the maintenance of accounts and to make transactions to the sportsbooks, the bank would be failing to fulfill the regulations of that state and would be risking sanctions.
By doing this, BNCR is trying to secure relationships with the banks in the U.S. and to avoid possible diplomatic damage, according to the official release. The Bank Official was not specific about which accounts were closed, but he assured us that there were a lot and they generated a very large sum of money. The same official has also statey that they have closed the accounts of some casinos, although this was not specifically addressed in the edict issued by the Board of Directors.
According to the Code of Commerce, these closings occur in two segments. First a warning is sent giving the account holder three days' notice. Although this was an unilateral decision by the BNCR, the other banks of the country do not have a large amount of sportsbook accounts, according to Alvaro Saborio, president of the Costa Rican Banking Association and People of Cuscatlan.
On the other hand, the General Superintendent of Financial Organizations, Bernardine Alfaro, indicates that they have not emitted any directive concerning the sportsbooks. In as much, the head of the Libertarian Movement, Federico Malavassi, disagrees with the decision made by the BNCR, stating that it could cause the loss of over 15,000 jobs.
By:Gustavo Jiménez M.
Redactor de la Nación
Bank Justifies Action for "Preventative Reasons"
Using a directive issued by the Board of directors two weeks ago, Banco Nacional closed all bank accounts held by sportsbooks. A high ranking bank offical indicated that the decision was made in order to protect the bank from possible risks which could be incurred when having a business relationship with sportsbooks (which are prohibited in some areas of the United States).
In the evening an official press release from the office of Public Relations was distributed ratifying the closing of the accounts, adding that this is a power allowed under Bank Article 616 of the commerce code.
These businesses (Sportsbooks) reside on the World Wide Web and receive bets on sports events through those webistes and on the telephone, in offices that are located in Costa Rica. It is estimated that between 100 and 200 of these places operate in this country.
Yesterday, it was not possible to locate Eduardo Agami, representative of a Sportsbook--SBG--and president of an association involving these businesses, so a director of the BNCR was contacted for further discussion. During BNCR's arguments, I mentioned a law of the United States known as the Patriot Act, that authorizes the authorities of that country to close accounts and to confiscate foreign monies deposited in if unusual activity is suspected and if the banks correspond with North American financial organizations.
In case of sportsbooks, BNCR alleges that in the state of Florida, where there is a seat of the International Bank of Costa Rica (BICSA, that belongs to BNCR), bets are illegal. To allow the maintenance of accounts and to make transactions to the sportsbooks, the bank would be failing to fulfill the regulations of that state and would be risking sanctions.
By doing this, BNCR is trying to secure relationships with the banks in the U.S. and to avoid possible diplomatic damage, according to the official release. The Bank Official was not specific about which accounts were closed, but he assured us that there were a lot and they generated a very large sum of money. The same official has also statey that they have closed the accounts of some casinos, although this was not specifically addressed in the edict issued by the Board of Directors.
According to the Code of Commerce, these closings occur in two segments. First a warning is sent giving the account holder three days' notice. Although this was an unilateral decision by the BNCR, the other banks of the country do not have a large amount of sportsbook accounts, according to Alvaro Saborio, president of the Costa Rican Banking Association and People of Cuscatlan.
On the other hand, the General Superintendent of Financial Organizations, Bernardine Alfaro, indicates that they have not emitted any directive concerning the sportsbooks. In as much, the head of the Libertarian Movement, Federico Malavassi, disagrees with the decision made by the BNCR, stating that it could cause the loss of over 15,000 jobs.
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