GoldMoney.com Ends e-Checks Due to U.S. Banking Regs

[Frisco06]

GoldMoney Closing US-Based Electronic Check and Bank Wire Facilities After December 15

To: All Customers with Bank Accounts in the United States

We regret to inform you that the following services will no longer be provided for bank accounts in the United States after December 15th, 2007:

   1. Processing US dollar electronic check transactions, and
   2. Accepting US dollar wires in a US-based bank account.

After that date all transactions with our customers who use their bank account in the United States must be completed with an international wire transfer.

Therefore we are writing to advise that beginning December 16th the following will apply for all purchases and sales made by customers who wish to use their bank account in the United States:

Purchases

Purchases of goldgrams and silver ounces can only be made with funds in your Holding. You therefore need to send funds from your bank account in the United States by international wire transfer to the US dollar account at our bank in Jersey, British Channel Islands. These funds are placed in your Holding upon receipt at our bank, and they immediately begin earning interest. To help offset the cost of international wire transfers charged by your bank, until March 31st, 2008 GOLDMONEY WILL CREDIT US$30 TO YOUR GOLDMONEY HOLDING for every US dollar wire transfer of US$5,000 or more received from banks in the United States.

Sales

When you sell goldgrams and silver ounces, the proceeds will be placed in your Holding, and they immediately begin earning interest. If you choose to send any money from your Holding to your bank account in the United States, the funds will be sent to your bank account by international wire transfer. Until March 31st, 2008 GOLDMONEY WILL WAIVE THE USUAL BANK WIRE TRANSFER FEE if you transfer US dollars to your bank account in the United States. In other words, GoldMoney will wire funds back to your US bank account at no cost to you, though it is possible your bank may charge a fee for receiving a wire transfer.

Burdensome regulations in the United States are making it increasingly difficult for international companies like ours that are not based in the United States to operate an account with a US bank. Rather than going through the complex route of opening a US-based subsidiary and the time-consuming and expensive US regulatory process in each of the 50 States, we believe it is in the best interest of our company and our customers for GoldMoney to remain within the jurisdiction of Jersey, British Channel Islands, one of the world's most respected financial centers.

If you have any questions or concerns about this change in our services, please do not hesitate to contact us:
http://goldmoney.com/en/support.php

It wasn't immediately clear to me specifically what regulations pushed them over the edge, though from what I've read, over the past few years it's become significantly easier for the Feds to seize assets from U.S. banks.