Neteller will no longer allow gaming transactions for US customers

by Lou on January 18, 2007

Neteller issued the following Press Release regarding the arrests of former Directors Stephen Lawrence and John Lefebvre. Then they announced they will not do any additional gaming-related transactions with US customers, although US customers may continue to use Neteller for any other transactions.

NETELLER Plc, the leading independent online money transfer business, today issued the following statement regarding the speculation surrounding two of its former directors and founder shareholders, Mr Stephen Lawrence and Mr John Lefebvre.

While travelling separately in the US, Mr Lawrence and Mr Lefebvre, both former directors of the Company, were detained by US authorities on Monday, 15 January 2007. Other than as shareholders, neither Mr Lawrence nor Mr Lefebvre has any current position with or connection to NETELLER.

The Group has not received any communication or correspondence from any US authority regarding this or any related matter. Pending clarification of the situation the Board has sought immediate temporary suspension of NETELLER’s shares.

Further information will be issued in due course.

Further information
Mr Lawrence resigned as a non-executive director of the Company on 13 October 2006 having stepped down as non-executive chairman of the Company on 11 May 2006. Mr Lefebvre resigned as a non-executive director of the Company on 15December 2005. Mr Lawrence is the majority beneficial owner of Corvina International Ltd. which holds a total of 7,085,541 ordinary shares representing approximately 5.91% of the issued share capital of the Company.

Mr Lefebvre is the beneficial owner of Eagle Medallion Fortress Investment Corporation which holds a total of 6,638,094 ordinary shares representing approximately 5.54% of the issued share capital of the Company.

About the NETELLER Group
With over 3 million customers in 160 countries and more than US$ 7 billion in annual transactions, the NETELLER Group operates the largest independent online money transfer business in the world. The Group specialises in providing innovative and instant payment services where money transfer is difficult or risky due to identity, trust, currency exchange or distance. Being independent has allowed the Group to support over 3,500 retailers and merchants in many geographies and across multiple industries.

The Group is quoted on the London Stock Exchange’s AIM market, with a ticker symbol of NLR. NETELLER (UK).

The following has been taken directly from Neteller’s new FAQs regarding the issue of US based customer use of Neteller accounts. The complete set of FAQs can be accessed at I’ll provide updates as this story develops:

Why is NETELLER no longer allowing US members to make fund transfers with online gambling sites? 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.

Why can’t I access my instaCASH funds in my NETELLER account? NETELLER has made a policy and technical change that has disabled instaCASH for US members.

Can I still use my NETELLER account?

Yes. All US members and non-US members will continue to be able to use their NETELLER e-wallet account for safe online transfers to and from non-gambling merchants, secure peer-to-peer transfers and NETELLER Card withdrawals at ATMs around the world.

Does this change affect withdrawals with NETELLER?
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.

What’s the quickest and most convenient way to withdraw funds from my NETELLER account?
The NETELLER Card is the quickest and most convenient withdrawal option. When you transfer funds from your NETELLER e-wallet account to your NETELLER Card, you can withdraw those funds from any ATM cash machine on the Cirrus/Maestro network and Pulse Star network, depending on your country of residence. You will have to pay a nominal fee for NETELLER Card withdrawals, but your funds will be available from 15 minutes to an hour after they are transferred to your card.

Is my money safe in my NETELLER account?
Yes, your money is safe with NETELLER. All members can hold their funds safely in their NETELLER accounts until such time as they decide to move the funds. The changes in gambling merchant transfers do not affect the ability of US member to maintain funds in their NETELER e-wallet accounts.

NETELLER protects all members’ funds (all deposited, in-transit and un-cleared funds) by holding the value in independent trust accounts. As the largest independent online money transfer business in the world, we maintain our head office in Europe and are a publicly quoted company on the AIM market of the London Stock Exchange. NETELLER UK Ltd is authorised and regulated by the Financial Services Authority.

Am I required to withdraw my money from NETELLER?
No, there is no requirement for US members to withdraw their funds from their e-wallet accounts. US members will still be able to use their NETELLER e-wallet accounts for safe online transactions to non-gambling merchants, secure peer-to-peer transfers and instant payouts with the NETELLER Card.

Who can I contact for assistance? If your question has not been answered by this FAQ, or if you require further assistance, please contact NETELLER Customer Service by calling 1-888-258-5859.

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