Legislation Could Imperil Payment Processing Services for Some Adult Sites

Legislation Could Imperil Payment Processing Services for Some Adult Sites

WASHINGTON — Some adult site operators could lose access to banking or processing services if the End Banking for Human Traffickers Act is put into law.

H.R. 2219 received resounding approval in the House of Representatives several week ago with a 408-2 vote. Now the piece of legislation heads to the U.S. Senate.

Under H.R. 2219, the Federal Financial Institutions Examination Council would be directed to review and improve anti-money laundering programs related to human trafficking, as well as policies for referring suspected cases to law enforcement agencies.

The U.S. Department of State additionally would be directed to report on efforts to eliminate money laundering related to human trafficking and to report to Congress on the number of investigations, indictments and convictions.

If the End Banking for Human Traffickers Act passes the Senate and is signed into law, adult site operators should be especially wary of what could come next.  

“If passed, this bill will intensify the anti-money laundering compliance efforts undertaken by banks and financial institutions,” industry attorney Lawrence Walters told XBIZ.

“Given the recent efforts to conflate human trafficking with consensual sex work, some adult website operators could lose access to banking or processing services,” Walters said.

“The oversight mandated by the bill will likely cause banks to err on the side of caution whenever confronted with a customer who might be involved with sex work in some fashion.”

H.R. 2219, authored by Rep. Edward Royce of California, follows one of the biggest legislative blows for online companies — the loss of Section 230 of the Communications Decency Act.

Earlier this month, President Trump signed SESTA/FOSTA into law. That law opens more avenues for victims of online sex trafficking to legally pursue websites that facilitate trafficking by amending Section 230, making it easier for prosecutors and private citizens to go after platforms whose sites have been used by traffickers.

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Clip Page Launches 'Creator Analytics' Feature

Custom content marketplace Clip Page has launched the Creator Analytics feature on its platform.

BBWXXXAdventures Relaunches Through Grooby's Blue.xxx

Paysite BBWXXXAdventures has relaunched under Grooby's new website management company Blue.xxx.

Flirt4Free Announces 'Tease the Season' Holiday Contest

Flirt4Free has announced its Tease the Season promo and model contest, which will run Dec. 21-25.The competition is led by the return of the Snowflake Contest, where models can be gifted digital snowflakes by their fans. The models who collect the most snowflakes by 11:59 a.m. on Christmas Day will win cash prizes.

SWR Data Publishes 2024 'Top Creator Platforms' Report

Adult industry market research firm SWR Data has published a report on the Top Creator Platforms of 2024.

MintStars Joins Pineapple Support as Supporter-Level Sponsor

Content platform MintStars has joined the ranks of over 60 adult businesses and organizations committing funds and resources to Pineapple Support.

Politicians Aim to Study Effects of FOSTA-SESTA on Sex Workers

In an encouraging sign for sex workers, California State Representative Ro Khanna and U.S. Senator Elizabeth Warren of Massachusetts have reintroduced the SAFE SEX Workers Study Act, which aims to study the effects of FOSTA-SESTA.

Pornhub to Shut Down Access in Florida Over Age Verification

Aylo will geoblock Pornhub across Florida starting Jan. 1, when HB 3, the state's age verification law, goes into effect.

AEBN Publishes Popular Searches by Country for October, November

AEBN has released the list of popular searches from its straight and gay theaters by country in October and November.

Texas Bill Aims to Ban Sex Toys at 'Big-Box' Retailers

Republican State Representative Hillary Hickland has introduced a bill in the Texas legislature that would restrict the sale of pleasure products at "big-box" and other non-adult retailers.

Jacquie et Michel Acquired by 'International Fund'

French adult studio Jacquie et Michel has been acquired by an international fund, marking a significant development for the well-known brand.

Show More