What is Reg GG in banking?
Prohibits any person engaged in the business of betting or wagering (as defined in the Act) from knowingly accepting payments in connection with the participation of another person in unlawful Internet gambling.
Who is exempt from Reg GG?
§ 233.4 Exemptions. (c) Money transmitting businesses. The participants in a money transmitting business are exempt from this regulation’s requirements for establishing written policies and procedures reasonably designed to prevent or prohibit restricted transactions, except for the operator.
What are the five designated payment systems according to Reg GG?
Designated Payment Systems and Non-Exempt Participants 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 does the UIGEA and Reg GG require banks to do at account opening?
UIGEA requires banks to give a notice to commercial customers that explains restricted transactions.
Does UIGEA apply to individuals?
Furthermore, the UIGEA does not target players; it targets those who facilitate financial transactions for unlicensed gambling sites. The UIGEA has had mixed results in attaining its original goal.
What task is a requirement of the UIGEA compliance policy?
You must establish and implement written policies and procedures that are reasonably designed to identify and block or otherwise prevent or prohibit payments related to unlawful Internet gambling that are restricted by UIGEA and are processed through your facilities.
What does the Gramm Leach Bliley Act permit?
The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.
How does the UIGEA impact online gambling?
UIGEA prohibits businesses from knowingly accepting payments from players who place a bet or wager via the internet and in a state that hasn’t legalized gambling.
What transactions does Reg E not cover?
Debit cards are issued by financial institutions and allow consumers to make purchases at businesses or online. These transactions with debit cards are covered by Regulation E. However, the law does not cover regular credit card payments, prepaid phone cards, gift cards, and stored-value cards.
What is regulation GG and what does it do?
Definition and Overview. What Is Regulation GG? Prohibition on Funding of Unlawful Internet Gambling. Regulation GG, also known as Prohibition on Funding of Unlawful Internet Gambling, is a regulation of the U.S. Federal Reserve Board that governs how people can participate in online gambling activities.
What is an example of non-compliance with regulation GG?
An example of non-compliance with this rule might be a business that accepts payments from an individual in exchange for making online bets or wagers on behalf of that individual. This is called a “restricted transaction” in the language of Regulation GG.
What is regulation GG and how does it affect online betting?
The main rule of Regulation GG stipulates that entities involved in online betting and wagering, whether they are businesses or individuals, cannot accept payments from third parties in connection with online gambling activities.