Reply To: Nelson I Rose – Final UIEGA Regs


A new definition for the term “commercial customer” was added to the final rule in response to comments that suggested that the final rule should clarify that the regulation was focused on due diligence procedures relating to commercial customers, rather than consumer accounts.35 As noted above, other than for payment systems with a transaction coding functionality, the Agencies are suggesting that the efforts of participants in designated payment systems be focused on preventing restricted transactions primarily through due diligence on commercial customers. The Agencies have revised the provisions of the regulation to provide more clarity on this point. To facilitate this, a definition of the term “commercial customer” was added to the final rule.

And you can see that all regulations apply to and reffer to “commercial customers”.

Several commenters suggested that the final rule should clarify the Agencies’ intent that the non-exclusive examples provided in the proposed rule were focused on relationships with commercial customers and not with respect to consumer accounts.65 The Agencies recognize the problems with designing and implementing procedures focused on consumer accounts. For example, except for card systems, a participant would generally not know the purpose of a consumer transaction and often the payee information on a transaction, such as a check, is not in automated form. In response to the comments requesting clarification on this point, as a general matter, the non-exclusive examples in §___.6 have been revised to make it clear in each instance that the policies and procedures to be implemented to prevent restricted transactions are with respect to commercial customer accounts only.

Now, we are not talking about credit cards, since they are coded, but other than UK-facing websites, no other online gambling website is using gambling-coded transactions.

This is one of the most important things, I believe, as people will continue to be able to cash their winning checks (granted they don’t bounce for insufficient funds) :)