US AUTHORITIES are planning to use money laundering agreements to extradite directors of British online gaming companies, in a move set to reignite transatlantic tensions.

The American authorities believe they will get their way easier and faster if they invoke money laundering, rather than lesser charges. They are targeting directors of British companies that had US customers.

“It depends on what the crime is as to whether they can be extradited,” said one legal source. “If the UK authorities see money laundering in the charges they are obliged to extradite.”

The news comes after it emerged over the weekend that the Department of Justice (DoJ) was escalating its attack on the online gambling industry by issuing subpoenas to 16 London-based banks, accountants and legal advisers who had dealings with the sector.

The DoJ’s actions follow it increasing the stakes again earlier this month by arresting Stephen Lawrence and John Lefebvre, the founders of e-payments provider Neteller.

Neither run the company any longer, but both have been charged with handling billions of dollars in illegal gambling proceeds and face up to 20 years in prison.