Alert November 18, 2008

FRB and Treasury Department Issue Final Rule on Funding of Unlawful Internet Gambling

The FRB and U.S. Treasury Department issued a final rule implementing the Unlawful Internet Gambling Act (the “Act”).  The new rule, which is designated as FRB Regulation GG, will require financial institutions participating in certain payment systems to develop compliance policies and procedures designed to identify and restrict unlawful Internet gambling transactions.  As a general matter, compliance with the new rule will become mandatory by December 1, 2009.  We will provide a more detailed description of Regulation GG is a coming issue of the Alert.