65506 Federal Register / Vol. 83, No. 245 / Friday, December 21, 2018 / Rules and Regulations 

Dated: December 13, 2018. 

Scott Gottlieb, 

Commissioner of Food and Drugs. 

[FR Doc. 2018–27431 Filed 12–19–18; 8:45 am] 

BILLING CODE 4164–01–P 

DEPARTMENT OF THE INTERIOR 

National Indian Gaming Commission 

25 CFR Part 543 

RIN 3141–AA60 

Minimum Internal Control Standards 

AGENCY: National Indian Gaming 

Commission, Interior. 

ACTION: Final rule. 

SUMMARY: The National Indian Gaming 

Commission (NIGC) amends its 

minimum internal control standards for 

Class II gaming under the Indian 

Gaming Regulatory Act to correct an 

erroneous deletion of the key control 

standards and to make other minor edits 

and additions for clarity. 

DATES: Effective Date: January 22, 2019. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Lawson at (202) 632–7003 or by 

fax (202) 632–7066 (these numbers are 

not toll free). 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Indian Gaming Regulatory Act 

(IGRA or Act), Public Law 100–497, 25 

U.S.C. 2701 et seq., was signed into law 

on October 17, 1988. The Act 

established the National Indian Gaming 

Commission (‘‘NIGC’’ or ‘‘Commission’’) 

and set out a comprehensive framework 

for the regulation of gaming on Indian 

lands. On January 5, 1999, the NIGC 

published a final rule in the Federal 

Register called Minimum Internal 

Control Standards. 64 FR 590. The rule 

added a new part to the Commission’s 

regulations establishing Minimum 

Internal Control Standards (MICS) to 

reduce the risk of loss because of 

customer or employee access to cash 

and cash equivalents within a casino. 

The rule contains standards and 

procedures that govern cash handling, 

documentation, game integrity, 

auditing, surveillance, and variances, as 

well as other areas. 

The Commission recognized from 

their inception that the MICS would 

require periodic review and updates to 

keep pace with technology and has 

substantively amended them numerous 

times, most recently in late 2013 (78 FR 

63873). 

II. Development of the Rule 

On September 21, 2012, the 

Commission concluded nearly two years 

of consultation and drafting with the 

publication of comprehensive 

amendments, additions, and updates to 

Part 543, the minimum internal control 

standards (MICS) for Class II gaming 

operations (77 FR 58708). The 

regulations require tribes to establish 

controls and implement procedures at 

least as stringent as those described in 


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this part to maintain the integrity of the 

gaming operation. In late 2013, the 

Commission published a final rule, 

adding kiosk drop, count, fill, and 

surveillance standards to Part 543 (78 

FR 63873). 

Now, the Commission is finalizing 

additional revisions, largely technical in 

nature, that are meant to correct earlier 

editing oversights and to better clarify 

the intent of the provisions. The 

proposed rule was published June 8, 

2018 (83 FR 26620), and the comment 

period expired July 9, 2018. 

III. Review of Public Comments 

NIGC received the following 

comments in response to the proposed 

rule: 

Comment: One commenter 

recommended requiring an inventory 

under § 543.10(e) if a table is open going 

into the next gaming day. 

Response: The standard requires a 

count at the end of each shift and the 

Commission notes that the majority of 

operations have shifts that coincide 

with their gaming days. Tribes have the 

option of requiring an additional count 

where a shift crosses over from one 

gaming day to the next. 

Comment: One commenter argued 

that it is too burdensome to require a 

supervisor to count the table inventory 

in § 543.10(e). 

Response: Since its inception, 

§ 543.10(e) has required a supervisor to 

count the table inventory. The rule now 

also requires a supervisor to count the 

main card room bank. 

Comment: One commenter believed 

that the amendments eliminated kiosks 

from § 543.17(j). 

Response: The kiosk provisions 

remain in the regulations and can be 

found at §§ 543.17(i) (Kiosk count 

standards) and (j)(9): ‘‘Controls must be 

established and procedures 

implemented to safeguard the use, 

access, and security of keys for kiosks.’’ 

Comment: Two commenters 

expressed concern that § 543.17(j)(4), 

which requires the key holder to be 

independent of those conducting the 

drop, would prevent those responsible 

for drops from having access to the keys 

necessary to conduct them. One 

commenter specifically identified the 

need for security personnel’s assistance 

in emergency drops as problematic 

under these regulations because the 

security department holds the keys. 

Response: The term ‘‘custody’’ seems 

to have been confused with physical use 

of the key. Typically, security personnel 

are not used as drop agents: they only 

accompany the drop team as they 

remove Financial Instrument Storage 

Components. Occasionally, operations 

allow card tables to be dropped by a 

security agent and the shift supervisor. 

Custody involves more than just 

physical custody (i.e., stored in security 

room or other area controlled by 

security), and includes logical custody 

(i.e., I.T. controls of lock box). 

Additionally, the complete inventory 

records for the keys should be kept with 

accounting department. 

A separation of duties must be 

established for granting or limiting 

access to the keys, custody of the keys, 

and recordkeeping duties for the keys. 

Each operation is unique and, to 

maintain independence, security should 

either be precluded from acting as drop 

team agents or have limited control over 

the keys. 

Comment: One commenter requested 

clarification on § 543.17(j)(7), 

particularly whether it is intended to 

address emergency drop situations 

requiring immediate access. 

Response: The standard is meant to 

address emergency drop situations. Use 

of the keys outside the scheduled time 

for use includes an emergency drop. 

Other times can include, but are not 

limited to, inventory or replacement. 

The standard is intended to ensure 

security of the box contents and require 

proper authorization to issue of keys 

outside of the scheduled count. 

Comment: One commenter asked 

whether § 543.17(j)(8) applies to 

manually-controlled key boxes, 

electronic boxes, or both, and whether 

removal of the player interface drop and 

count will need to meet requirements 

set forth for regularly scheduled drop 

and count (e.g. § 543.17(e)(4)) in 

addition to these requirements. 

Response: The standard applies to 

computerized, electronic, and 

alternative key systems. A manual key 

system does not have an override key. 

In the event of power loss or other issue, 

the emergency manual keys allow 

access to the key box. These keys should 

be secured by other means and only 

accessed in an emergency. 

The removal of a financial instrument 

can occur during a regularly scheduled 

drop or an emergency drop. Standards 

are provided for each situation and the 

operation should determine which are 

appropriate to follow based on the 

circumstances. 

Comment: One Commenter asked 

whether § 543.17(j)(8)(i) also applies to 

financial instrument storage 

components and drop boxes. 

Response: It does not. The standard 

applies to emergency manual keys. The 

standard later states at § 543.17(j)(8)(iii) 

that if the player interface drop and 

count keys are not accessed, then only 

two agents are required: Those are the 

keys used for the financial instrument 

storage components and drop boxes. 

Comment: One commenter expressed 

a general concern that overly 

burdensome key controls lead to delay, 

customer frustration and inefficiency of 

the gaming operation and noted the 

need for balance between security and 

functionality. 

Response: The Commission agrees 

and believes it has done its best to strike 

a proper balance between protection of 

tribal assets and efficiency. These 

standards are consistent with those of 

other jurisdictions, but also allow some 

flexibility. Tribes and operation 

management must establish controls 

and implement procedures to best fit 

their needs and manage risks specific to 

their operations. 

Comment: One commenter believes 

§ 543.17(j)(6) is in conflict with 

§ 543.17(d)(4) and the entire key control 

process needs further clarification. 

Response: Without further discussion, 

it is unclear what conflict the 

commenter sees. The Commission 

believes the provisions can be read 

harmoniously. Section 543.17(j)(6) 

restricts access to drop box release keys 

to the count team and authorized agents. 

Section 543.17(j)(7) requires anyone 

using the keys outside of the scheduled 

drop and count time to be authorized— 

thereby becoming an authorized agent 

under (j)(6))—and documented. This 

allows for an emergency drop to be 

conducted by authorized agents so the 

drop team does not need to be called. 

Section 543.17 (d)(4) requires drop 

boxes to be removed only at the time 

previously designated by the gaming 

operation and reported to the TGRA, but 

it specifically allows for emergency 

drops, which require surveillance and 

TGRA to be notified. 

IV. Regulatory Matters 

Regulatory Flexibility Act 

The rule will not have a significant 

impact on a substantial number of small 

entities as defined under the Regulatory 

Flexibility Act, 5 U.S.C. 601, et seq. 

Moreover, Indian Tribes are not 

considered to be small entities for the 

purposes of the Regulatory Flexibility 

Act. 

Small Business Regulatory Enforcement 

Fairness Act 

The rule is not a major rule under 5 

U.S.C. 804(2), the Small Business 

Regulatory Enforcement Fairness Act. 

The rule does not have an effect on the 

economy of $100 million or more. The 

rule will not cause a major increase in 

costs or prices for consumers, 

individual industries, Federal, State, 


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local government agencies or geographic 

regions, nor will the proposed rule have 

a significant adverse effect on 

competition, employment, investment, 

productivity, innovation, or the ability 

of the enterprises, to compete with 

foreign based enterprises. 

Unfunded Mandate Reform Act 

The Commission, as an independent 

regulatory agency, is exempt from 

compliance with the Unfunded 

Mandates Reform Act, 2 U.S.C. 1502(1); 

2 U.S.C. 658(1). 

Takings 

In accordance with Executive Order 

12630, the Commission has determined 

that the rule does not have significant 

takings implications. A takings 

implication assessment is not required. 

Civil Justice Reform 

In accordance with Executive Order 

12988, the Commission has determined 

that the rule does not unduly burden the 

judicial system and meets the 

requirements of sections 3(a) and 3(b)(2) 

of the Order. 

National Environmental Policy Act 

The Commission has determined that 

the rule does not constitute a major 

federal action significantly affecting the 

quality of the human environment and 

that no detailed statement is required 

pursuant to the National Environmental 

Policy Act of 1969, 42 U.S.C. 4321, et 

seq. 

Paperwork Reduction Act 

The information collection 

requirements contained in this rule 

were previously approved by the Office 

of Management and Budget as required 

by 44 U.S.C. 3501, et seq., and assigned 

OMB Control Number 3141–0009. The 

OMB control number expires on 

November 30, 2018. 

Tribal Consultation 

The National Indian Gaming 

Commission is committed to fulfilling 

its tribal consultation obligations— 

whether directed by statute or 

administrative action such as Executive 

Order (E.O.) 13175 (Consultation and 

Coordination with Indian Tribal 

Governments)—by adhering to the 

consultation framework described in its 

Consultation Policy published July 15, 

2013. The NIGC’s consultation policy 

specifies that it will consult with tribes 

on Commission Action with Tribal 

Implications, which is defined as: Any 

Commission regulation, rulemaking, 

policy, guidance, legislative proposal, or 

operational activity that may have a 

substantial direct effect on an Indian 

tribe on matters including, but not 

limited to the ability of an Indian tribe 

to regulate its Indian gaming; an Indian 

tribe’s formal relationship with the 

Commission; or the consideration of the 

Commission’s trust responsibilities to 

Indian tribes. 

The key control language proposed 

here is the most substantive of all the 

changes and was the subject of 

extensive consultation in 2012 (77 FR 

58708). The language has not changed 

since initially adopted. It was 

inadvertently written over with the 

addition of kiosk controls in 2013, and 

this rule is to include the controls back 

into the regulations. The remaining 

changes are all technical in nature, 

correcting numbering and adding minor 

clarifications. 

List of Subjects in 25 CFR Part 543 

Accounting, Administrative practice 

and procedure, Gambling, Indian— 

Indian lands, Reporting and 

recordkeeping requirements. 

For the reasons discussed in the 

Preamble, the Commission amends 25 

CFR part 543 as follows: 

PART 543—MINIMUM INTERNAL 

CONTROL STANDARDS FOR CLASS II 

GAMING 

■ 1. The authority citation for part 543 

continues to read as follows: 

Authority: 25 U.S.C. 2702(2), 2706(b)(1–4), 

2706(b)(10). 

■ 2. Amend § 543.10 by revising 

paragraph (e) to read as follows: 

§ 543.10 What are the minimum internal 

control standards for card games? 

* * * * * 

(e) Standards for reconciliation of 

card room bank. Two agents—one of 

whom must be a supervisory agent— 

must independently count the main 

card room bank and table inventory at 

the end of each shift and record the 

following information: 

(1) Date; 

(2) Shift; 

(3) Table number (if applicable); 

(4) Amount by denomination; 

(5) Amount in total; and 

(6) Signatures of both agents. 

* * * * * 

■ 3. Amend § 543.17 by revising 

paragraphs (d), (i)(4)(i), and (j) to read as 

follows: 

§ 543.17 What are the minimum internal 

control standards for drop and count? 

* * * * * 

(d) Card game drop standards. 

Controls must be established and 

procedures implemented to ensure 

security of the drop process. Such 

controls must include the following: 

(1) Surveillance must be notified 

when the drop is to begin so that 

surveillance may monitor the activities. 

(2) At least two agents must be 

involved in the removal of the drop box, 

at least one of whom is independent of 

the card games department. 

(3) Once the drop is started, it must 

continue until finished. 

(4) All drop boxes may be removed 

only at the time previously designated 

by the gaming operation and reported to 

the TGRA. If an emergency drop is 

required, surveillance must be notified 

before the drop is conducted and the 

TGRA must be informed within a 

timeframe approved by the TGRA. 

(5) At the end of each shift: 

(i) All locked card game drop boxes 

must be removed from the tables by an 

agent independent of the card game 

shift being dropped; 

(ii) For any tables opened during the 

shift, a separate drop box must be 

placed on each table, or a gaming 

operation may utilize a single drop box 

with separate openings and 

compartments for each shift; and 

(iii) Card game drop boxes must be 

transported directly to the count room 

or other equivalently secure area by a 

minimum of two agents, at least one of 

whom is independent of the card game 

shift being dropped, until the count 

takes place. 

(6) All tables that were not open 

during a shift and therefore not part of 

the drop must be documented. 

(7) All card game drop boxes must be 

posted with a number corresponding to 

a permanent number on the gaming 

table and marked to indicate game, table 

number, and shift, if applicable. 

* * * * * 

(i) * * * 

(4) * * * 

(i) The count of each box must be 

recorded in ink or other permanent form 

of recordation. 

* * * * * 

(j) Controlled keys. Controls must be 

established and procedures 

implemented to safeguard the use, 

access, and security of keys in 

accordance with the following: 

(1) Each of the following requires a 

separate and unique key lock or 

alternative secure access method: 

(i) Drop cabinet; 

(ii) Drop box release; 

(iii) Drop box content; and 

(iv) Storage racks and carts used for 

the drop. 

(2) Access to and return of keys or 

equivalents must be documented with 

the date, time, and signature or other 


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1 31 CFR part 148; 81 FR 75624 (Oct. 31, 2016). 

unique identifier of the agent accessing 

or returning the key(s). 

(i) For Tier A and B operations, at 

least two (2) drop team agents are 

required to be present to access and 

return keys. For Tier C operations, at 

least three (3) drop team agents are 

required to be present to access and 

return keys. 

(ii) For Tier A and B operations, at 

least two (2) count team agents are 

required to be present at the time count 

room and other count keys are issued 

for the count. For Tier C operations, at 

least three (two for card game drop box 

keys in operations with three tables or 

fewer) count team agents are required to 

be present at the time count room and 

other count keys are issued for the 

count. 

(3) Documentation of all keys, 

including duplicates, must be 

maintained, including: 

(i) Unique identifier for each 

individual key; 

(ii) Key storage location; 

(iii) Number of keys made, 

duplicated, and destroyed; and 

(iv) Authorization and access. 

(4) Custody of all keys involved in the 

drop and count must be maintained by 

a department independent of the count 

and the drop agents as well as those 

departments being dropped and 

counted. 

(5) Other than the count team, no 

agent may have access to the drop box 

content keys while in possession of 

storage rack keys and/or release keys. 

(6) Other than the count team, only 

agents authorized to remove drop boxes 

are allowed access to drop box release 

keys. 

(7) Any use of keys at times other than 

the scheduled drop and count must be 

properly authorized and documented. 

(8) Emergency manual keys, such as 

an override key, for computerized, 

electronic, and alternative key systems 

must be maintained in accordance with 

the following: 

(i) Access to the emergency manual 

key(s) used to access the box containing 

the player interface drop and count keys 

requires the physical involvement of at 

least three agents from separate 

departments, including management. 

The date, time, and reason for access, 

must be documented with the signatures 

of all participating persons signing out/ 

in the emergency manual key(s); 

(ii) The custody of the emergency 

manual keys requires the presence of 

two agents from separate departments 

from the time of their issuance until the 

time of their return; and 

(iii) Routine physical maintenance 

that requires access to the emergency 

manual key(s), and does not involve 

accessing the player interface drop and 

count keys, only requires the presence 

of two agents from separate 

departments. The date, time, and reason 

for access must be documented with the 

signatures of all participating agents 

signing out/in the emergency manual 

key(s). 

(9) Controls must be established and 

procedures implemented to safeguard 

the use, access, and security of keys for 

kiosks. 

* * * * * 

■ 4. Amend § 543.18 by revising 

paragraph (d)(6)(v) to read as follows: 

§ 543.18 What are the minimum internal 

control standards for the cage, vault, kiosk, 

cash and cash equivalents? 

* * * * * 

(d) * * * 

(6) * * * 

(v) Dollar amount per financial 

instrument redeemed; 

* * * * * 

■ 5. Amend § 543.23 by revising 

paragraph (c)(1)(viii) to read as follows: 

§ 543.23 What are the minimum internal 

control standards for audit and accounting? 

* * * * * 

(c) * * * 

(1) * * * 

(viii) Drop and count standards, 

including supervision, count room 

access, count team, card game drop 

standards, player interface and financial 

instrument drop standards, card game 

count standards, player interface 

financial instrument count standards, 

collecting currency cassettes and 

financial instrument storage 

components from kiosks, kiosk count 

standards, and controlled keys; 

* * * * * 

■ 6. Amend § 543.24 by revising 

paragraphs (a) and (d)(5) to read as 

follows: 

§ 543.24 What are the minimum internal 

control standards for auditing revenue? 

(a) Supervision. Supervision must be 

provided as needed for revenue audit by 

an agent(s) with authority equal to or 

greater than those being supervised. 

* * * * * 

(d) * * * 

(5) Complimentary services or items. 

At least monthly, review the reports 

required in § 543.13(c). These reports 

must be made available to those entities 

authorized by the TGRA or by tribal law 

or ordinance. 

* * * * * 

Washington, DC. 

Dated: December 12, 2018. 

Jonodev O. Chaudhuri, 

Chairman. 

Dated: December 12, 2018. 

Kathryn Isom-Clause, 

Vice Chair. 

Dated: December 17, 2018. 

E. Sequoyah Simermeyer, 

Associate Commissioner. 

[FR Doc. 2018–27651 Filed 12–20–18; 8:45 am] 

BILLING CODE 7565–01–P 

DEPARTMENT OF THE TREASURY 

31 CFR Part 148 

Qualified Financial Contracts 

Recordkeeping Related to Orderly 

Liquidation Authority 

AGENCY: Department of the Treasury. 

ACTION: Notification of exemptions. 

SUMMARY: The Secretary of the Treasury 

(the ‘‘Secretary’’), as Chairperson of the 

Financial Stability Oversight Council 

(‘‘FSOC’’), after consultation with the 

Federal Deposit Insurance Corporation 

(the ‘‘FDIC’’), is issuing a determination 

regarding requests for exemption from 

certain requirements of the rule 

implementing the qualified financial 

contracts (‘‘QFC’’) recordkeeping 

requirements of Title II of the DoddFrank Wall Street Reform and Consumer 

Protection Act (the ‘‘Dodd-Frank Act’’ or 

the ‘‘Act’’). 

DATES: The exemptions granted are 

effective December 21, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Peter Phelan, Deputy Assistant 

Secretary for Capital Markets, (202) 

622–1746; Peter Nickoloff, Financial 

Economist, Office of Capital Markets, 

(202) 622–1692; Steven D. Laughton, 

Assistant General Counsel (Banking & 

Finance), (202) 622–8413; or Stephen T. 

Milligan, Acting Deputy Assistant 

General Counsel (Banking & Finance), 

(202) 622–4051. 

SUPPLEMENTARY INFORMATION: 

Background 

On October 31, 2016, the Secretary 

published a final rule pursuant to 

section 210(c)(8)(H) of the Dodd-Frank 

Act requiring certain financial 

companies to maintain records with 

respect to their QFC positions, 

counterparties, legal documentation, 

and collateral that would assist the FDIC 

as receiver in exercising its rights and 

fulfilling its obligations under Title II of 

the Act (the ‘‘final rule’’ or ‘‘rule’’).1


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