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Regulations

In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act, which prohibits anyone in the business of betting or wagering (as defined by the act) from knowingly accepting payments that result from unlawful Internet gambling.  The Department of Treasury and the Federal Reserve Board have issued a joint final rule, Regulation GG, to implement this Act.  Banks are required to comply with the Act beginning June 1, 2010.

Under Regulation GG, financial institutions and other businesses that play a role in certain payment systems are required to identify commercial customers that may be providing Internet gambling and have policies and procedures in place that are reasonably designed to identify and block proceeds from unlawful Internet gambling transactions, or prevent or prohibit the unlawful transactions.  The Act generally defines “unlawful Internet gambling” as placing, receiving, or otherwise knowingly transmitting a bet or wager by any means which involves the use, at least in part, of the Internet where such a 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. Such transactions are termed “restricted transactions.”  The regulation applies only to commercial accounts and not consumer accounts.

It is the policy of First Southern Bank to comply with the requirements of Regulation GG.  As a customer of First Southern you should be aware of the following:

  • As a commercial accountholder you will be asked at the time of account opening whether or not you participate in any Internet gambling.  First Southern Bank will not knowingly open an account for a business that primarily engages in gambling via the Internet.
  • Restricted transactions are prohibited from being processed through your account or banking relationship with us.
  • In the event we gain actual knowledge that a commercial account has processed restricted transactions or engages in Internet gambling activity, we may elect to close the account.
  • By maintaining a commercial account with First Southern Bank, you agree to notify us if your account is ever used for Internet gambling of any kind, even if you believe the activity to be legal.