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Can you summarize 12 CFR Part 233?
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM > PROHIBITION ON FUNDING OF UNLAWFUL INTERNET GAMBLING (REGULATION GG)
Short Summary
The Prohibition on Funding of Unlawful Internet Gambling is a regulation issued by the Board of Governors of the Federal Reserve System and the Secretary of the Department of the Treasury. It applies to financial institutions, commercial customers, operators of designated payment systems, and third-party processors. The regulation aims to regulate unlawful internet gambling and restrict certain financial transactions associated with it. The document defines various terms related to internet gambling and payment systems. It provides exemptions for certain types of transactions such as securities transactions, transactions conducted on registered entities or exempt board of trade, over-the-counter derivative instruments, contracts of indemnity or guarantee, contracts for insurance, deposits or other transactions with insured depository institutions, participation in certain games or contests, and participation in fantasy or simulation sports games or educational games or contests. The regulation requires non-exempt participants in designated payment systems to establish and implement written policies and procedures to identify and block or prevent restricted transactions related to unlawful internet gambling. It allows participants to rely on the written policies and procedures of the designated payment system for compliance. The regulation does not require blocking or prevention of transactions related to excluded activities such as intrastate transactions, intratribal transactions, or transactions allowed under the Interstate Horseracing Act of 1978. The document provides non-exclusive examples of policies and procedures for identifying and blocking restricted transactions. It also mentions the regulatory enforcement authority of the Federal functional regulators and the Federal Trade Commission. The document does not specify the penalties for non-compliance or violation of its provisions.
Whom does it apply to?
Financial institutions, commercial customers, operators of designated payment systems, and third-party processors
What does it govern?
Prohibition on Funding of Unlawful Internet Gambling
What are exemptions?
Exemptions include certain participants in automated clearing house systems, check collection systems, money transmitting businesses, and wire transfer systems
What are the Penalties?
The document does not specify the penalties for non-compliance or violation of its provisions
Jurisdiction
U.S. Federal Government