31 U.S.C. § 5364 — Policies and procedures to identify and

Page 505 TITLE 31—MONEY AND FINANCE § 5364 Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1171 of Title 15 and Tables. The Indian Gaming Regulatory Act, referred to in par. (10)(B)(iii)(IV), (C)(i), (iv)(IV), is Pub. L. 100–497, Oct. 17, 1988, 102 Stat. 2467, which is classified prin- cipally to chapter 29 (§ 2701 et seq.) of Title 25, Indians. For complete classification of this Act to the Code, see Short Title note set out under section 2701 of Title 25 and Tables. The date of the enactment of this subchapter, re- ferred to in par. (10)(D)(iii), is the date of enactment of Pub. L. 109–347, which was approved Oct. 13, 2006. Section 101 of the Federal Credit Union Act, referred to in par. (11)(D)(ii), is classified to section 1752 of Title 12, Banks and Banking. § 5363. Prohibition on acceptance of any finan- cial instrument for unlawful Internet gam- bling No person engaged in the business of betting or wagering may knowingly accept, in connec- tion with the participation of another person in unlawful Internet gambling— (1) credit, or the proceeds of credit, extended to or on behalf of such other person (including credit extended through the use of a credit card); (2) an electronic fund transfer, or funds transmitted by or through a money transmit- ting business, or the proceeds of an electronic fund transfer or money transmitting service, from or on behalf of such other person; (3) any check, draft, or similar instrument which is drawn by or on behalf of such other person and is drawn on or payable at or through any financial institution; or (4) the proceeds of any other form of finan- cial transaction, as the Secretary and the Board of Governors of the Federal Reserve System may jointly prescribe by regulation, which involves a financial institution as a payor or financial intermediary on behalf of or for the benefit of such other person. (Added Pub. L. 109–347, title VIII, § 802(a), Oct. 13, 2006, 120 Stat. 1957.) § 5364. Policies and procedures to identify and prevent restricted transactions (a) REGULATIONS.—Before the end of the 270- day period beginning on the date of the enact- ment of this subchapter, the Secretary and the Board of Governors of the Federal Reserve Sys- tem, in consultation with the Attorney General, shall prescribe regulations (which the Secretary and the Board jointly determine to be appro- priate) requiring each designated payment sys- tem, and all participants therein, to identify and block or otherwise prevent or prohibit re- stricted transactions through the establishment of policies and procedures reasonably designed to identify and block or otherwise prevent or prohibit the acceptance of restricted trans- actions in any of the following ways: (1) The establishment of policies and proce- dures that— (A) allow the payment system and any per- son involved in the payment system to iden- tify restricted transactions by means of codes in authorization messages or by other means; and (B) block restricted transactions identified as a result of the policies and procedures de- veloped pursuant to subparagraph (A). (2) The establishment of policies and proce- dures that prevent or prohibit the acceptance of the products or services of the payment sys- tem in connection with a restricted trans- action. (b) REQUIREMENTS FOR POLICIES AND PROCE- DURES.—In prescribing regulations under sub- section (a), the Secretary and the Board of Gov- ernors of the Federal Reserve System shall— (1) identify types of policies and procedures, including nonexclusive examples, which would be deemed, as applicable, to be reasonably de- signed to identify and block or otherwise pre- vent or prohibit the acceptance of the prod- ucts or services with respect to each type of restricted transaction; (2) to the extent practical, permit any par- ticipant in a payment system to choose among alternative means of identifying and blocking, or otherwise preventing or prohibiting the ac- ceptance of the products or services of the payment system or participant in connection with, restricted transactions; (3) exempt certain restricted transactions or designated payment systems from any require- ment imposed under such regulations, if the Secretary and the Board jointly find that it is not reasonably practical to identify and block, or otherwise prevent or prohibit the accept- ance of, such transactions; and (4) ensure that transactions in connection with any activity excluded from the definition of unlawful internet gambling in subparagraph (B), (C), or (D)(i) of section 5362(10) are not blocked or otherwise prevented or prohibited by the prescribed regulations. (c) COMPLIANCE WITH PAYMENT SYSTEM POLI- CIES AND PROCEDURES.—A financial transaction provider shall be considered to be in compliance with the regulations prescribed under subsection (a) if— (1) such person relies on and complies with the policies and procedures of a designated payment system of which it is a member or participant to— (A) identify and block restricted trans- actions; or (B) otherwise prevent or prohibit the ac- ceptance of the products or services of the payment system, member, or participant in connection with restricted transactions; and (2) such policies and procedures of the des- ignated payment system comply with the re- quirements of regulations prescribed under subsection (a). (d) NO LIABILITY FOR BLOCKING OR REFUSING TO HONOR RESTRICTED TRANSACTIONS.—A person that identifies and blocks a transaction, pre- vents or prohibits the acceptance of its products or services in connection with a transaction, or otherwise refuses to honor a transaction— (1) that is a restricted transaction; (2) that such person reasonably believes to be a restricted transaction; or (3) as a designated payment system or a member of a designated payment system in re- Page 506 TITLE 31—MONEY AND FINANCE § 5365 liance on the policies and procedures of the payment system, in an effort to comply with regulations prescribed under subsection (a), shall not be liable to any party for such action. (e) REGULATORY ENFORCEMENT.—The require- ments under this section shall be enforced exclu- sively by— (1) the Federal functional regulators, with respect to the designated payment systems and financial transaction providers subject to the respective jurisdiction of such regulators under section 505(a) of the Gramm-Leach-Bli- ley Act and section 5g of the Commodities Ex- change Act; and (2) the Federal Trade Commission, with re- spect to designated payment systems and fi- nancial transaction providers not otherwise subject to the jurisdiction of any Federal func- tional regulators (including the Commission) as described in paragraph (1). (Added Pub. L. 109–347, title VIII, § 802(a), Oct. 13, 2006, 120 Stat. 1958.) Editorial Notes REFERENCES IN TEXT The date of the enactment of this subchapter, re- ferred to in subsec. (a), is the date of enactment of Pub. L. 109–347, which was approved Oct. 13, 2006. Section 505(a) of the Gramm-Leach-Bliley Act, re- ferred to in subsec. (e)(1), is classified to section 6805(a) of Title 15, Commerce and Trade. Section 5g of the Commodities Exchange Act, re- ferred to in subsec. (e)(1), is classified to section 7b–2 of Title 7, Agriculture. § 5365. Civil remedies (a) JURISDICTION.—In addition to any other remedy under current law, the district courts of the United States shall have original and exclu- sive jurisdiction to prevent and restrain re- stricted transactions by issuing appropriate or- ders in accordance with this section, regardless of whether a prosecution has been initiated under this subchapter. (b) PROCEEDINGS.— (1) INSTITUTION BY FEDERAL GOVERNMENT.— (A) IN GENERAL.—The United States, act- ing through the Attorney General, may in- stitute proceedings under this section to prevent or restrain a restricted transaction. (B) RELIEF.—Upon application of the United States under this paragraph, the dis- trict court may enter a temporary restrain- ing order, a preliminary injunction, or an in- junction against any person to prevent or re- strain a restricted transaction, in accord- ance with rule 65 of the Federal Rules of Civil Procedure. (2) INSTITUTION BY STATE ATTORNEY GEN- ERAL.— (A) IN GENERAL.—The attorney general (or other appropriate State official) of a State in which a restricted transaction allegedly has been or will be initiated, received, or otherwise made may institute proceedings under this section to prevent or restrain the violation or threatened violation. (B) RELIEF.—Upon application of the attor- ney general (or other appropriate State offi- cial) of an affected State under this para- graph, the district court may enter a tem- porary restraining order, a preliminary in- junction, or an injunction against any per- son to prevent or restrain a restricted trans- action, in accordance with rule 65 of the Federal Rules of Civil Procedure. (3) INDIAN LANDS.— (A) IN GENERAL.—Notwithstanding para- graphs (1) and (2), for a restricted trans- action that allegedly has been or will be ini- tiated, received, or otherwise made on In- dian lands (as that term is defined in section 4 of the Indian Gaming Regulatory Act)— (i) the United States shall have the en- forcement authority provided under para- graph (1); and (ii) the enforcement authorities specified in an applicable Tribal-State Compact ne- gotiated under section 11 of the Indian Gaming Regulatory Act (25 U.S.C. 2710) shall be carried out in accordance with that compact. (B) RULE OF CONSTRUCTION.—No provision of this section shall be construed as altering, superseding, or otherwise affecting the ap- plication of the Indian Gaming Regulatory Act. (c) LIMITATION RELATING TO INTERACTIVE COM- PUTER SERVICES.— (1) IN GENERAL.—Relief granted under this section against an interactive computer serv- ice shall— (A) be limited to the removal of, or dis- abling of access to, an online site violating section 5363, or a hypertext link to an online site violating such section, that resides on a computer server that such service controls or operates, except that the limitation in this subparagraph shall not apply if the serv- ice is subject to liability under this section under section 5367; (B) be available only after notice to the interactive computer service and an oppor- tunity for the service to appear are provided; (C) not impose any obligation on an inter- active computer service to monitor its serv- ice or to affirmatively seek facts indicating activity violating this subchapter; (D) specify the interactive computer serv- ice to which it applies; and (E) specifically identify the location of the online site or hypertext link to be removed or access to which is to be disabled. (2) COORDINATION WITH OTHER LAW.—An inter- active computer service that does not violate this subchapter shall not be liable under sec- tion 1084(d) of title 18, except that the limita- tion in this paragraph shall not apply if an interactive computer service has actual knowledge and control of bets and wagers and— (A) operates, manages, supervises, or di- rects an Internet website at which unlawful bets or wagers may be placed, received, or otherwise made or at which unlawful bets or wagers are offered to be placed, received, or otherwise made; or (B) owns or controls, or is owned or con- trolled by, any person who operates, man-