What are the 5 designated payment systems according to Reg GG?

What are the 5 designated payment systems according to Reg GG?

The rule designates five payment systems that may be used for restricted transactions: card systems, ACH systems, wire transfer systems, check collection systems, and money transmitting businesses.

What is the primary focus of the final rule on unlawful Internet gambling?

The final rule requires U.S. financial firms that participate in designated payment systems to establish and implement policies and procedures that are reasonably designed to prevent payments to gambling businesses in connection with unlawful Internet gambling.

Which regulation requires institutions to establish policies and procedures designed to identify and block restricted transactions?

UIGEA also requires the Agencies, in consultation with the U.S. Department of Justice, to issue a rule requiring designated payment systems and financial transaction providers participating in each designated payment system to establish policies and procedures reasonably designed to identify and block, or otherwise …

What is the purpose of Regulation GG?

Regulation GG implements the Unlawful Internet Gambling Enforcement Act (UIGEA). The Act prohibits businesses from knowingly accepting payments in connection with unlawful internet gambling, including payments made through credit cards, electronic funds transfers and checks.

What is a restricted transaction?

Restricted Transaction means a transaction that is outside the ordinary course of business of the Company and the Company Subsidiaries that is not: (i) any sale, transfer or other similar transaction or series of related transactions having the effect of selling or transferring all or substantially all of the assets of …

What is an illegal gambling business?

(1) “illegal gambling business” means a gambling business which— (i) is a violation of the law of a State or political subdivision in which it is conducted; (ii) involves five or more persons who conduct, finance, manage, supervise, direct, or own all or part of such business; and.

Does Reg GG change all federal and state laws on gambling?

5361-5367). The Act states that none of its provisions shall be construed as altering, limiting, or extending any Federal or State law or Tribal-State compact prohibiting, permitting, or regulating gambling within the United States.

Who does Regulation GG apply to?

A joint rule issued by the U.S. Department of the Treasury (31CFR 132) and the Federal Reserve Board (12 CFR Part 233 – Regulation GG) states that the following five payment systems are covered by UIGEA: automated clearing house systems, card systems, check collection systems, money-transmitting businesses, and wire …

What happens when your account is restricted?

A restricted account may limit or prevent you from withdrawing funds. It may even limit the number of deposits you can make and checks you can write. In some cases, an account holder can place restrictions on his own account.

Why would a debit card be restricted?

When an ATM screen shows your card as restricted, that means your bank is hard at work protecting you from fraud or some other problem. Banks, credit unions, brokerage accounts and other debit card issuers take great pains to prevent fraud, and you are the beneficiary of their problem-detection systems.