Internet Gambling

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Question:

How can we identify an ACH transaction as internet gambling when the transaction will probably have an SEC code of WEB? What is everyone doing to try to monitor for internet gambling transactions?

Answer:

As an RDFI, you are exempt from any requirement to block incoming debit entries. You can prevent credit entries that are restricted transactions by refusing to open or allow to remain open accounts for commercial customers that operate unlawful Internet gambling businesses.

As an ODFI, you are exempt from having to block outgoing credit entries, and you can block outgoing debits that are restricted transactions by refusing to open or allow to remain open accounts for commercial customers that operate unlawful Internet gambling businesses.

And, of course, we'd be remiss if we didn't mention that the mandatory compliance date for Regulation GG has been moved back to June 1, 2010.

First published on BankersOnline.com 12/07/09