Unlawful Internet Gambling Funding Prohibition Act

Unlawful Internet Gambling Funding Prohibition Act - Prohibits any person engaged in a gambling business from knowingly accepting in connection with the participation of another person in Internet gambling: (1) credit, or the proceeds of credit, extended to another (including credit card extension of credit); (2) an electronic fund transfer or funds transmitted by or through a money transmitting business, or the proceeds of an electronic fund transfer or money transmitting service, from or on behalf of another; (3) any instrument drawn by or on behalf of another and payable through any financial institution; or (4) the proceeds of any other form of financial transaction involving a financial institution as payor or financial intermediary for another.

(Sec. 3) Prescribes judicial guidelines under which the Federal district courts exercise exclusive jurisdiction to prevent or restrain violations of this Act. Provides for civil and criminal penalties, including a permanent injunction against wagering.

Shields certain financial intermediaries from liability for either unknowing involvement or unknowing use of their facilities in: (1) any credit transaction, electronic fund transfer, or money transmitting service; or (2) drawing, paying, transferring, or collecting a check or draft instrument. Cites exceptions for knowing participation in a gambling business.

(Sec. 4) Declares that the Federal Government, in deliberations with a foreign government on money laundering, corruption, and crime issues, should: (1) encourage cooperation by foreign governments and relevant international fora in identifying whether Internet gambling operations are being used for money laundering, corruption, or other crimes; (2) advance policies that promote international cooperation in the enforcement of this Act; and (3) encourage the Financial Action Task Force on Money Laundering to study, in its annual report, the extent to which Internet gambling operations are being used for money laundering.

(Sec. 5) Amends the Federal Deposit Insurance Act to provide that if an appropriate Federal banking agency determines that an insured depository institution is engaged in activities proscribed under this Act, such agency may issue an injunction against the person in violation of this Act.