Exemptions Reg GG

Regulation GG lists the exemptions on a system-by-system basis. You’ll notice that, in general, all participants are exempt except the participant that has the customer relationship with the business that is conducting Internet gambling.

You should also note, however, that the Regulation provides no exemptions for any participants in a card system.

Automated Clearing House Exemptions

All participants in a particular ACH transaction are exempt except

  • The receiving depository financial institution and any third-party processor receiving the transaction on behalf of the receiver in an ACH credit transaction [12 CFR 233.4(a)(1)]
  • The originating depository financial institution and any third-party processor initiating the transaction on behalf of the originator in an ACH debit transaction. [12 CFR 233.4(a)(2)]
  • The receiving gateway operator and any third-party processor that receives instructions for an ACH debit transaction directly from a foreign sender (which could include a foreign banking office, a foreign third-party processor, or a foreign originating gateway operator) [12 CFR 233.4(a)(3)]

If you participate in ACH transactions and function as any of the three bulleted entities above, you are not exempt and must comply with the policies and procedures requirement.

Check Collection Systems

All participants except the depositary bank are exempt from the policies and procedures requirement. [12 CFR 233.4(b)]

Money Transmitting Business

All participants except the operator are exempt from the policies and procedures requirement. [12 CFR 233.4(c)]

Wire Transfer Systems

All participants except the beneficiary’s bank are exempt from the policies and procedures requirement. [12 CFR 233.4(d)]