Summary

GAO reviewed the Federal Reserve System and Department of the Treasury's new rule on prohibition on funding of unlawful internet gambling. GAO found that (1) the final rule designates payment systems that could be used by participants in connection with, or to facilitate, a restricted transaction and exempts certain participants in certain designated pay systems from the requirements of the regulation, requires participants performing non-exempt functions to establish and implement policies and procedures reasonably designed to prevent or prohibit restricted transactions, and provides non-exclusive examples of such policies and procedures, and sets out the regulatory enforcement framework and is effective January 19, 2009; and (2) Federal Reserve System and Department of the Treasury complied with the applicable requirements in promulgating the rule.