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#2253839 - 05/12/21 08:40 PM Reg GG
NE Wx Forecast - Frosty Offline
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NE Wx Forecast - Frosty
Joined: Mar 2011
Posts: 441
SE, Nebraska
I've searched "Reg GG" in the Forum and found nothing. If anyone knows of any discussion on what constitutes Illegal Online Gambling, I'd like to know. I've read that this is State Specific and wondering why we are not talking to our lawyers about Policy Guidance. Am I on the right track?

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#2253841 - 05/12/21 09:00 PM Re: Reg GG NE Wx Forecast - Frosty
BrianC Offline
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BrianC
Joined: Nov 2004
Posts: 6,204
Illinois
The definitions are a good place to start
https://www.bankersonline.com/regulations/12-233-002

(bb) Unlawful Internet gambling means to place, receive, or otherwise knowingly transmit a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the State or Tribal lands in which the bet or wager is initiated, received, or otherwise made. The term does not include placing, receiving, or otherwise transmitting a bet or wager that is excluded from the definition of this term by the Act as an intrastate transaction or an intra-tribal transaction, and does not include any activity that is allowed under the Interstate Horseracing Act of 1978 (15 U.S.C. 3001 et seq.; see Sec. 233.1(a)). The intermediate routing of electronic data shall not determine the location or locations in which a bet or wager is initiated, received, or otherwise made.

If you are not sure what types of online gambling are legal in your state then by all means ask legal counsel.
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#2253850 - 05/13/21 12:33 PM Re: Reg GG BrianC
NE Wx Forecast - Frosty Offline
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NE Wx Forecast - Frosty
Joined: Mar 2011
Posts: 441
SE, Nebraska
Thanks Brian.
We're being prodded by the FDIC to come up with Policy. Yet in the Compliance realm, there is no training for compliance officers on "how to Identify such illegal activity". All I can find are "Policy templates". So, all we really have is a customer signature promising not to do anything illegal. So what good is having a piece of paper called "Policy"? I'd like some opinion on that from FDIC banks and how you administer day to day CDD on this activity. Yes, I think discussion with legal counsel is in order.

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#2253851 - 05/13/21 12:55 PM Re: Reg GG NE Wx Forecast - Frosty
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,597
Galveston, TX
There is some other guidance out there - like here: https://www.federalreserve.gov/supervisionreg/regggcg.htm

It really is the most worthless regulation that was ever passed and I am surprised that any regulator continues to focus on it. If your BSA/AML monitoring systems are not strong enough to detect or flag a commercial customer that is engaging in illegal internet gambling - you might want to start there after drafting a simple policy document, if you really do not have one.
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#2253857 - 05/13/21 01:58 PM Re: Reg GG NE Wx Forecast - Frosty
NE Wx Forecast - Frosty Offline
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NE Wx Forecast - Frosty
Joined: Mar 2011
Posts: 441
SE, Nebraska
Thanks RL. Our automation is plenty compliant there. It's just a question of whether or not a piece of paper is required, when that doc in the link you provided actually says, based on risk, you would be compliant to simply have account opening signatures affirming they won't do illegal activity on the account (page 3). Appreciate both of your inputs on this. Thanks.

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#2253864 - 05/13/21 02:24 PM Re: Reg GG NE Wx Forecast - Frosty
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,597
Galveston, TX
Well, the regulation actually requires you to have a written policy and procedures, even as minimal as your policy and procedures may turn out. If you do not have a written policy and procedures, that is probably what they are driving at.

Sec. 233.5 - Policies and procedures required.
(a) All non-exempt participants in designated payment systems shall establish and implement written policies and procedures reasonably designed to identify and block or otherwise prevent or prohibit restricted transactions.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2253871 - 05/13/21 03:30 PM Re: Reg GG rlcarey
P*Q Offline

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P*Q
Joined: May 2001
Posts: 8,450
Somewhere
Originally Posted by rlcarey
It really is the most worthless regulation that was ever passed

Truer words never spoken! :laugh:

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