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Federal Register / Vol. 74, No. 229 / Tuesday, December 1, 2009 / Rules and Regulations
§ 170.5

Communications.

FEDERAL RESERVE SYSTEM

* * * Detailed guidance on making
electronic submissions can be obtained
by visiting the NRC’s Web site at
http://www.nrc.gov/site-help/esubmittals.html; by e-mail to
MSHD.Resource@nrc.gov; or by writing
the Office of Information Services, U.S.
Nuclear Regulatory Commission,
Washington, DC 20555–0001. * * *
PART 171—ANNUAL FEES FOR
REACTOR LICENSES AND FUEL
CYCLE LICENSES AND MATERIAL
LICENSES, INCLUDING HOLDERS OF
CERTIFICATES OF COMPLIANCE,
REGISTRATIONS, AND QUALITY
ASSURANCE PROGRAM APPROVALS
AND GOVERNMENT AGENCIES
LICENSED BY NRC
103. The authority citation for part
171 continues to read as follows:

■

Authority: Sec. 7601, Public Law 99–272,
100 Stat. 146, as amended by sec. 5601,
Public Law 100–203, 101 Stat. 1330 as
amended by sec. 3201, Public Law 101–239,
103 Stat. 2132, as amended by sec. 6101,
Public Law 101–508, 104 Stat. 1388, as
amended by sec. 2903a, Public Law 102–486,
106 Stat. 3125 (42 U.S.C. 2213, 2214), and as
amended by Title IV, Public Law 109–103,
119 Stat. 2283 (42 U.S.C. 2214); sec. 301,
Pub. L. 92–314, 86 Stat. 227 (42 U.S.C.
2201w); sec. 201, Public Law 93–438, 88 Stat.
1242, as amended (42 U.S.C. 5841); sec. 1704,
112 Stat. 2750 (44 U.S.C. 3504 note); sec.
651(e), Public Law 109–58, 119 Stat. 806–810
(42 U.S.C. 2014, 2021, 2021b, 2111).

104. In § 171.9, revise the third
sentence to read as follows:

■

§ 171.9

Communications.

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* * * Detailed guidance on making
electronic submissions can be obtained
by visiting the NRC’s Web site at
http://www.nrc.gov/site-help/esubmittals.html; by e-mail to
MSHD.Resource@nrc.gov; or by writing
the Office of Information Services, U.S.
Nuclear Regulatory Commission,
Washington, DC 20555–0001. * * *
Dated at Rockville, Maryland, this 18th day
of November 2009.
For the Nuclear Regulatory Commission.
Michael T. Lesar,
Chief, Rulemaking and Directives Branch,
Division of Administrative Services, Office
of Administration.
[FR Doc. E9–28141 Filed 11–30–09; 8:45 am]
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12 CFR Part 233
[Regulation GG; Docket No. R–1298]

DEPARTMENT OF THE TREASURY
31 CFR Part 132
RIN 1505–AB78

Prohibition on Funding of Unlawful
Internet Gambling
AGENCIES: Board of Governors of the
Federal Reserve System and
Departmental Offices, Department of the
Treasury.
ACTION: Final rule; extension of
compliance date.
SUMMARY: This document is published
jointly by the Board of Governors of the
Federal Reserve System (‘‘Board’’) and
Departmental Offices, Department of the
Treasury (‘‘Treasury’’) (collectively, the
‘‘Agencies’’) to extend the compliance
date for the final regulation
implementing applicable provisions of
the Unlawful Internet Gambling
Enforcement Act of 2006 (the ‘‘Act’’).1
The final regulation requires nonexempt participants in designated
payment systems to establish and
implement written policies and
procedures that are reasonably designed
to identify and block or otherwise
prevent or prohibit unlawful Internet
gambling transactions restricted by the
Act. In extending the compliance date,
the Agencies have consulted with the
Department of Justice, as required by the
Act.
DATES: The effective date of the final
regulation published November 18,
2008 (73 FR 69382) remains January 19,
2009. The compliance date of the final
regulation is extended from December 1,
2009 to June 1, 2010.
FOR FURTHER INFORMATION CONTACT:
Board: Christopher W. Clubb, Senior
Counsel (202/452–3904), Legal Division;
Jeffrey S. Yeganeh, Manager, or Joseph
Baressi, Financial Services Project
Leader (202/452–3959), Division of
Reserve Bank Operations and Payment
Systems; for users of
Telecommunication Devices for the Deaf
(TDD) only, contact 202/263–4869.
Treasury: Charles Klingman, Director,
Office of Critical Infrastructure
Protection and Compliance Policy; or
Steven D. Laughton, Senior Counsel,
Office of the Assistant General Counsel
(Banking & Finance), 202/622–9209.
1 The final regulation adopted by the Board is
Regulation GG (12 CFR Part 233) and the final
regulation adopted by the Treasury is codified in 31
CFR Part 132. Regulation GG and 31 CFR Part 132
duplicate one another.

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62687

SUPPLEMENTARY INFORMATION:

I. Summary
On November 18, 2008, the Agencies
issued a joint final regulation
implementing the Act.2 Among other
things, the final regulation designates
payment systems that could be utilized
in connection with or to facilitate
unlawful Internet gambling transactions
restricted by the Act; exempts certain
participants in designated payment
systems; requires non-exempt
participants in designated payment
systems to establish policies and
procedures reasonably designed to
identify and block or otherwise prevent
or prohibit unlawful Internet gambling
transactions restricted by the Act; and
identifies types of policies and
procedures (including non-exclusive
examples) that would be deemed to be
reasonably designed to identify and
block or otherwise prevent or prohibit
unlawful Internet gambling transactions
restricted by the Act. The final
regulation established an effective date
of January 19, 2009 and a compliance
date of December 1, 2009.
By letter dated September 18, 2009,
the Agencies received a petition
requesting an extension of the
compliance date of the final regulation
for an additional twelve months to
December 1, 2010.3 The petitioners
assert that an extension of the
compliance date is necessary because a
significant number of regulated entities
will not have in place the necessary
policies and procedures by the current
December 1, 2009 compliance date.
Petitioners assert that many small
regulated entities do not have the
resources necessary to develop and
implement appropriate policies and
procedures by the December 1, 2009
compliance date and cite the possibility
of confusion regarding the term
‘‘unlawful Internet gambling.’’
The Agencies have received letters in
support of the petition from regulated
financial institutions, associations
representing regulated financial
institutions, and members of Congress.4
Some of these commenters assert that
the compliance date of December 1,
2009 will not be achievable for many
regulated entities despite their good2 73

FR 69382 (Nov. 18, 2008).
petition was submitted on behalf of three
gambling industry associations; specifically, the
Poker Players Alliance, the National Thoroughbred
Racing Association, and the American Greyhound
Track Owners Association.
4 See, e.g., letters from Wells Fargo (Oct. 21,
2009); the American Bankers Association (Nov. 4,
2009); the Credit Union National Association (Oct.
5, 2009); the National Association of Federal Credit
Unions (Nov. 9, 2009); and members of Congress
(Rep. Frank et al.) (Oct. 1, 2009).
3 The

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faith efforts to achieve full compliance.
Commenters expressed concern that the
Act and the final regulation do not
provide a clear definition of ‘‘unlawful
Internet gambling,’’ which is central to
compliance.5 In addition, certain
members of Congress acknowledged that
the Act does not contain a clear
definition of ‘‘unlawful Internet
gambling’’ and expressed an intent to
consider legislation that would allow
problematic aspects of the Act to be
addressed.6 Several of these members of
Congress stated that there is
considerable interest in Congress in
clarifying the laws underlying Internet
gambling, and that it would be prudent
to defer the compliance date until
Congress has had time to act. The
Agencies have also received letters
opposing the petition citing, among
other things, the speculative nature of
the problems raised by petitioners, the
associations and other interest groups.7
All of the opposition letters are from
members of Congress.8
While the final regulation affords
regulated entities maximum flexibility
in establishing and implementing
policies and procedures that are
reasonably designed to prevent or
prohibit unlawful Internet gambling
transactions restricted by the Act, the
Agencies acknowledge some of the
challenges regulated entities are
experiencing with the Act’s definition of
‘‘unlawful Internet gambling.’’ 9
Moreover, as noted above, several
members of Congress have indicated
interest in revising the Act.
The Agencies are thus persuaded that
a limited extension of the compliance
date for regulated entities is appropriate.
While representations made by the
associations whose members are
required to comply with the final
regulation and thus are in a position to
5 See, e.g., letter from the Independent
Community Bankers of America (Nov. 5, 2009), p.
1.
6 See, e.g., letter from Senator Reid (Nov. 9, 2009);
letter from Chairman Frank, House Committee on
Financial Services (Oct. 1, 2009); and letter from
Reps. Cohen, Berkley et al. (Sept. 25, 2009).
7 See, e.g., letter from Senator Kyl and
Representative Bachus (Nov. 3, 2009).
8 The petition and comment letters are available
for public inspection and copying in the Treasury
Library, Room 1428, Main Treasury Building, 1500
Pennsylvania Avenue, NW., Washington, DC. You
can make an appointment to inspect the petition
and the comments by calling (202) 622–0990. The
petition and comment letters are available from the
Board’s Web site at http://www.federalreserve.gov/
generalinfo/foia/
index.cfm?doc_id=R%2D1298&doc_ver=1.
9 In the final regulation, the Agencies address the
desire for more certainty that would result from a
precise regulatory definition of ‘‘unlawful Internet
gambling’’ through the due diligence guidance
contained in section ___.6(b) of the final regulation.
See 73 FR 69382, 69384 (Nov. 18, 2008).

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assess the level of difficulty and burden
in achieving compliance by the
December 1, 2009, compliance date
indicate that compliance is not
achievable by some institutions by
December 1, 2009, neither petitioners
nor commenters supporting the petition
have provided the Agencies with
sufficient data or documentation to
justify a twelve month extension of the
compliance date. The Agencies believe
that a six month extension is sufficient
for regulated entities to address issues
related to the definition of ‘‘unlawful
Internet gambling.’’ For example,
section l . 6(b) of the final regulation
makes it clear that non-exempt
participants may rely on documentation
provided by a commercial customer
regarding the legality of Internet
gambling activities. This shifting of the
burden will enhance the ability of
regulated entities to comply with the
challenging definition of ‘‘unlawful
Internet gambling’’ contained in the Act
and the final regulation. In particular,
the six month extension of the
compliance period will facilitate the
establishment of policies and
procedures that require gambling
businesses to document the legality of
their activities to regulated entities.
Accordingly, the compliance date for
the final regulation is extended to June
1, 2010.10 The final regulation’s
effective date of January 19, 2009
remains unchanged.

regard, the Agencies also believe that
regulated entities need to be informed as
soon as possible of the extension and its
length in order to plan and adjust their
implementation process accordingly.
The change to the compliance date is
effective upon publication in the
Federal Register.12

II. Administrative Law Matters

By order of the Board of Governors of the
Federal Reserve System, November 25, 2009.
Jennifer J. Johnson,
Secretary of the Board.

A. Executive Order 12866
It has been determined that this final
rule is not a significant regulatory action
as defined in Executive Order 12866.
Therefore, a Regulatory Assessment is
not required.
B. Regulatory Flexibility Act
Because no notice of proposed
rulemaking is required for this final
rule, the provisions of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) do
not apply.
C. Administrative Procedure Act
The Agencies find that, for good cause
and the reasons cited above, including
the brief length of the extension we are
granting, notice and solicitation of
comment regarding the extension of the
compliance date for the final regulation
are impracticable, unnecessary, or
contrary to the public interest.11 In this
10 Regulated entities may establish and
implement the written policies and procedures
required by the Act and the final regulation before
the June 1, 2010 compliance date.
11 See Section 553(b)(3)(B) of the Administrative
Procedure Act (5 U.S.C. 553(b)(3)(B)) (hereinafter

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D. Unfunded Mandates Reform Act
(Sec. 202, Pub. L. 104–4; 2 U.S.C. 1532)
Treasury has concluded the extension
of the compliance date does not contain
a Federal mandate that may result in the
expenditure by State, local and Tribal
governments, in aggregate, or by the
private sector, of $100 million or more
(adjusted for inflation) in any one year.
E. Plain Language
Each Federal banking agency, such as
the Board, is required to use plain
language in all proposed and final
rulemakings published after January 1,
2000. 12 U.S.C. 4809. In addition, in
1998, the President issued a
memorandum directing each agency in
the Executive branch, such as Treasury,
to use plain language for all new
proposed and final rulemaking
documents issued on or after January 1,
1999. The Agencies have sought to
present this final rule, to the extent
possible, in a simple and
straightforward manner.

Dated: November 24, 2009.
By the Department of the Treasury.
Michael S. Barr,
Assistant Secretary for Financial Institutions.
[FR Doc. E9–28746 Filed 11–27–09; 8:45 am]
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‘‘APA’’) (an agency may dispense with prior notice
and comment when it finds, for good cause, that
notice and comment are ‘‘impracticable,
unnecessary, or contrary to the public interest.’’).
12 This date is less than 30 days after publication
in the Federal Register, in accordance with the
APA, which allows effectiveness in less than 30
days after publication for ‘‘good cause.’’ See 5
U.S.C. 553(d)(3). The legislative history of Section
553(d)(3) indicates that its primary purpose was to
afford persons affected a reasonable time to prepare
for the effective date of a rule. The Agencies believe
that there is good cause for dispensing with the 30
day delayed effective date because the immediate
extension of the compliance date will have the
beneficial effect of affording regulated entities
additional preparation time.

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