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Board of Governors of the Federal Reserve System
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Board of Governors of the Federal Reserve System

Supervision and Regulation Letters

SR 10-11

Interagency Examination Procedures for Reviewing Compliance with the Unlawful Internet Gambling Enforcement Act of 2006

May 20, 2010

Seal of the Board of Governors of the Federal Reserve System
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C.  20551
DIVISION OF BANKING
SUPERVISION AND REGULATION
SR 10-11
May 20, 2010
TO THE OFFICER IN CHARGE OF SUPERVISION AT EACH FEDERAL RESERVE BANK AND TO BANKING ORGANIZATIONS SUPERVISED BY THE FEDERAL RESERVE
SUBJECT:   Interagency Examination Procedures for Reviewing Compliance with the Unlawful Internet Gambling Enforcement Act of 2006

The Board of Governors of the Federal Reserve System (Federal Reserve Board), has issued the attached interagency guidance for reviewing compliance by supervised financial institutions with the final rule implementing the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA).

The final rule implementing UIGEA was issued jointly in a Federal Register notice by the Department of the Treasury (Treasury) and the Federal Reserve Board.1 The rule is codified at 12 CFR Part 233 (Federal Reserve Board) and 31 CFR Part 132 (Treasury). The compliance date for the final rule is June 1, 2010.

The interagency examination guidance includes an overview of the final rule under UIGEA, applicable exemptions, and non-exclusive safe harbors for compliance. Appendix A of the overview is a summary chart of the obligations of non-exempt participants in payment systems designated by the final rule. Appendix B is the interagency UIGEA examination procedures. This examination guidance is issued on a stand-alone basis. Examiners should conduct UIGEA compliance reviews using a risk-based approach. They may choose to combine UIGEA compliance reviews with other operational risk or compliance risk examinations; however, there is no requirement to integrate UIGEA compliance with other compliance or risk management measures (e.g., anti-money laundering or information technology programs or procedures).

Reserve Banks are asked to distribute this letter to financial institutions supervised by the Federal Reserve in their districts, as well as to their own supervisory and examination staff. Questions on the attached guidance may be addressed to Nina Nichols, Assistant Director, Compliance Risk, at 202-452-2961 or Bradley J. Beytien, Manager, Operational and IT Risk, at 202-452-3759. In addition, questions may be sent via the Board’s public website.2

signed by
Patrick M. Parkinson
Director

 
Notes:
  1. See 73 FR 69382 (November 18, 2008).  Return to text
  2. See http://www.federalreserve.gov/feedback.cfm.  Return to text
Last update: February 1, 2011