to any transmission to or from the United States in viola-
tion of Federal, State, tribal, or local law, it shall dis-
continue or refuse, the leasing, furnishing, or maintaining 
of such facility, after reasonable notice to the subscriber, 
but no damages, penalty or forfeiture, civil or criminal, 
shall be found against any common carrier for any act 
done in compliance with any notice received from a law 
enforcement agency. Nothing in this section shall be 
deemed to prejudice the right of any person affected there-
by to secure an appropriate determination, as otherwise 
provided by law, in a Federal court or in a State, tribal, 
or local tribunal or agency, that such facility should not 
be discontinued or removed, or should be restored.’’. 
SEC. 103. AUTHORIZATION OF CIVIL ENFORCEMENT. 
Chapter 50 of title 18, United States Code, is amend-
ed by adding at the end the following new section: 
‘‘§ 1085. Civil remedies 
‘‘(a) JURISDICTION.—The district courts of the 
United States (in addition to any other remedies under 
current law) shall have original and exclusive jurisdiction 
to prevent and restrain violations of section 1084 by 
issuing appropriate orders in accordance with this section, 
regardless of whether a prosecution has been initiated 
under section 1084. 
‘‘(b) PROCEEDINGS.—
‘‘(1) The United States may institute pro-
ceedings under this section—
‘‘(A) to obtain injunctive or declarative re-
lief, including but not limited to a temporary 
restraining order and a preliminary injunction, 
against any person (other than a financial 
transaction provider) to prevent or restrain a 
violation or a threatened violation of section 
1084; 
‘‘(B) in the case of an insured depository 
institution that is a financial transaction pro-
vider, to—
‘‘(i) restrain an account maintained at 
such insured depository institution if such 
account is—
‘‘(I) owned or controlled by a 
gambling business; and 
‘‘(II) includes proceeds of, or is 
used to facilitate a violation of, sec-
tion 1084; or 
‘‘(ii) seize funds in an account de-
scribed in subparagraph (i) if such funds—
‘‘(I) are owned or controlled by a 
gambling business; and
‘‘(II) constitute the proceeds of, 
were derived from, or facilitated, a 
violation of section 1084. 
‘‘(C) The limitation in subparagraph (A) 
shall not apply if the financial transaction pro-
vider is a gambling business within the meaning 
of section 1081(12), in which case such finan-
cial transaction provider shall be subject to the 
enforcement provisions under subparagraph 
(A). 
‘‘(2) The attorney general (or other appropriate 
State official) of a State in which a communication 
in violation of section 1084 allegedly has been or will 
be initiated or received may institute proceedings 
under this section to obtain injunctive or declarative 
relief to prevent or restrain the violation or threat-
ened violation. Upon application of the attorney gen-
eral (or other appropriate State official) of an af-
fected State under this paragraph, the district court 
may enter a temporary restraining order, a prelimi-
nary injunction, an injunction, or declaratory relief 
against any person (other than a financial trans-
action provider) to prevent or restrain a violation or 
threatened violation of section 1084, in accordance 
with rule 65 of the Federal Rules of Civil Procedure.
‘‘(3) Notwithstanding paragraphs (1) and (2), 
for a communication in violation of section 1084 
that allegedly has been or will be initiated or re-
ceived on Indian lands (as that term is defined in 
section 4 of the Indian Gaming Regulatory Act)—
‘‘(A) the United States shall have the en-
forcement authority provided under paragraph 
(1); 
‘‘(B) the enforcement authorities specified 
in an applicable Tribal-State compact nego-
tiated under section 11 of the Indian Gaming 
Regulatory Act (25 U.S.C. 2710) shall be car-
ried out in accordance with that compact; and 
‘‘(C) if there is no applicable Tribal-State 
compact, an appropriate tribal official may in-
stitute proceedings in the same manner as an 
attorney general of a State. 
No provision of this section shall be construed as al-
tering, superseding, or otherwise affecting the appli-
cation of the Indian Gaming Regulatory Act. 
‘‘(4) Notwithstanding paragraph (3), no relief 
shall be granted under this section against a finan-
cial transaction provider except as provided in para-
graph (1).
‘‘(c) No damages, penalty, or forfeiture, civil or crimi-
nal, shall be found against any person or entity for any 
act done in compliance with any notice received from a 
law enforcement agency. 
‘‘(d) Relief granted under this section against an 
interactive computer service (as defined in section 230(f) 
of the Communications Act of 1934) shall—
‘‘(1) be limited to the removal of, or disabling 
of access to, an online site violating section 1084, or 
a hypertext link to an online site violating such sec-
tion, that resides on a computer server that such 
service controls or operates; except this limitation 
shall not apply if the service is violating section 
1084 or is in active concert with a person who is vio-
lating section 1084 and receives actual notice of the 
relief; 
‘‘(2) be available only after notice to the inter-
active computer service and an opportunity for the 
service to appear are provided; 
‘‘(3) not impose any obligation on an interactive 
computer service to monitor its service or to affirma-
tively seek facts indicating activity violating section 
1084; 
‘‘(4) specify the interactive computer service to 
which it applies; and
‘‘(5) specifically identify the location of the on-
line site or hypertext link to be removed or access 
to which is to be disabled.’’. 
SEC. 104. AUTHORIZATION OF APPROPRIATIONS. 
In addition to any other sums authorized to be appro-
priated for this purpose, there are authorized to be appro-
priated to the Department of Justice for each of fiscal 
years 2007 through 2010 $10,000,000 for investigations 
and prosecutions of violations of section 1084 of title 18, 
United States Code. 
SEC. 105. RULES OF CONSTRUCTION. 
(a) Nothing in this Act may be construed to prohibit 
any activity that is allowed under Public Law 95–515 as 
amended (15 U.S.C. 3001 et seq.). 
(b) Nothing in this Act may be construed to preempt 
State law prohibiting gambling. 
SEC. 106. SENSE OF CONGRESS. 
It is the sense of Congress that this Act does not 
change which activities related to horse racing may or may 
not be allowed under Federal law. Section 105 is intended 
to address concerns that this Act could have the effect 
of changing the existing relationship between the Inter-
state Horseracing Act (15 U.S.C. 3001 et seq.), and other 
Federal statutes that were in effect at the time of this 
Act’s consideration; this Act is not intended to change that
relationship; and this Act is not intended to resolve any 
existing disagreements over how to interpret the relation-
ship between the Interstate Horseracing Act and other 
Federal statutes. 
TITLE II—POLICIES AND PROCE-
DURES REQUIRED TO PRE-
VENT PAYMENTS FOR UNLAW-
FUL GAMBLING 
SEC. 201. POLICIES AND PROCEDURES REQUIRED TO PRE-
VENT PAYMENTS FOR UNLAWFUL GAMBLING. 
Chapter 53 of title 31, United States Code, is amend-
ed by adding at the end the following new subchapter: 
‘‘SUBCHAPTER IV—POLICIES AND PROCEDURES 
REQUIRED TO PREVENT PAYMENTS FOR 
UNLAWFUL GAMBLING 
‘‘§ 5361. Definitions 
‘‘For purposes of this subchapter, the following defi-
nitions shall apply: 
‘‘(1) CREDIT; CREDITOR; CREDIT
CARD; AND 
CARD ISSUER.—The terms ‘credit’, ‘creditor’, ‘credit 
card’, and ‘card issuer’ have the same meanings as 
in section 103 of the Truth in Lending Act. 
‘‘(2) DESIGNATED
PAYMENT
SYSTEM.—The 
term ‘designated payment system’ means any system 
utilized by a financial transaction provider that the
Secretary and the Board of Governors of the Fed-
eral Reserve System, in consultation with the Attor-
ney General, jointly determine, by regulation or 
order, could be utilized in connection with, or to fa-
cilitate, any restricted transaction. 
‘‘(3) ELECTRONIC FUND TRANSFER.—The term 
‘electronic fund transfer’—
‘‘(A) has the same meaning as in section 
903 of the Electronic Fund Transfer Act, ex-
cept that such term includes transfers that 
would otherwise be excluded under section 
903(6)(E) of that Act; and 
‘‘(B) includes any fund transfer covered by 
Article 4A of the Uniform Commercial Code, as 
in effect in any State. 
‘‘(4) FINANCIAL INSTITUTION.—The term ‘fi-
nancial institution’ has the same meaning as in sec-
tion 903 of the Electronic Fund Transfer Act, ex-
cept that such term does not include a casino, sports 
book, or other business at or through which bets or 
wagers may be placed or received. 
‘‘(5) FINANCIAL
TRANSACTION
PROVIDER.—
The term ‘financial transaction provider’ means a 
creditor, credit card issuer, financial institution, op-
erator of a terminal at which an electronic fund
transfer may be initiated, money transmitting busi-
ness, or international, national, regional, or local 
payment network utilized to effect a credit trans-
action, electronic fund transfer, stored value product 
transaction, or money transmitting service, or a par-
ticipant in such network, or other participant in a 
designated payment system. 
‘‘(6) INSURED DEPOSITORY INSTITUTION.—The 
term ‘insured depository institution’—
‘‘(A) has the same meaning as in section 
3 of the Federal Deposit Insurance Act; and 
‘‘(B) includes an insured credit union (as 
defined in section 101 of the Federal Credit 
Union Act). 
‘‘(7) MONEY
TRANSMITTING
BUSINESS
AND 
MONEY TRANSMITTING SERVICE.—The terms ‘money 
transmitting business’ and ‘money transmitting serv-
ice’ have the same meanings as in section 5330(d) 
(determined without regard to any regulations pre-
scribed by the Secretary thereunder). 
‘‘(8) RESTRICTED
TRANSACTION.—The term 
‘restricted transaction’ means any transaction or 
transmittal involving any credit, funds, instrument, 
or proceeds described in any paragraph of section
5362 which the recipient is prohibited from accept-
ing under such section. 
‘‘(9) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Treasury. 
‘‘(10) UNLAWFUL GAMBLING.—
‘‘(A) IN
GENERAL.—The term ‘unlawful 
gambling’ means to place, receive, or otherwise 
knowingly transmit a bet or wager by any 
means which involves the use of a communica-
tion facility where such bet or wager is unlawful 
under any applicable Federal or State law in 
the State or tribal lands in which the bet or 
wager is initiated, received, or otherwise made. 
‘‘(B) EXCLUSION
OF
CERTAIN
AUTHOR-
IZED
TRANSACTIONS.—The 
term 
‘unlawful 
gambling’ does not include any intrastate or 
intratribal transactions authorized under sec-
tion 1084(c) of title 18, United States Code. 
‘‘(C) INTERMEDIATE ROUTING.—With re-
spect to section 5362, the intermediate routing 
of electronic data shall not determine the loca-
tion or locations in which a bet or wager is ini-
tiated, received, or otherwise made. 
‘‘(11) OTHER
TERMS.—The terms ‘bet or 
wager’, ‘communication facility’, ‘gambling business’,
‘own and control’, ‘person’, ‘State’, and ‘tribal’ have 
the same meanings as in section 1081 of title 18. 
‘‘§ 5362. Prohibition on acceptance of any financial 
instrument for unlawful gambling 
‘‘No person engaged in a gambling business may 
knowingly accept, in connection with the participation of 
another person in unlawful gambling—
‘‘(1) credit, or the proceeds of credit, extended 
to or on behalf of such other person (including credit 
extended through the use of a credit card); 
‘‘(2) an electronic fund transfer, or funds trans-
mitted by or through a money transmitting business, 
or the proceeds of an electronic fund transfer or 
money transmitting service, from or on behalf of 
such other person; 
‘‘(3) any check, draft, or similar instrument 
which is drawn by or on behalf of such other person 
and is drawn on or payable at or through any finan-
cial institution; or 
‘‘(4) the proceeds of any other form of financial 
transaction, as the Secretary and the Board of Gov-
ernors of the Federal Reserve System may jointly 
prescribe by regulation, which involves a financial in-
stitution as a payor or financial intermediary on be-
half of or for the benefit of such other person.
‘‘§ 5363. Policies and procedures to identify and pre-
vent restricted transactions 
‘‘(a) REGULATIONS.—Before the end of the 270-day 
period beginning on the date of the enactment of this sub-
chapter, the Secretary and the Board of Governors of the 
Federal Reserve System, in consultation with the Attorney 
General, shall prescribe regulations (which the Secretary 
and the Board jointly determine to be appropriate) requir-
ing each designated payment system, and all participants 
therein, to identify and block or otherwise prevent or pro-
hibit restricted transactions through the establishment of 
policies and procedures reasonably designed to identify 
and block or otherwise prevent or prohibit the acceptance 
of restricted transactions in any of the following ways: 
‘‘(1) The establishment of policies and proce-
dures that—
‘‘(A) allow the payment system and any 
person involved in the payment system to iden-
tify restricted transactions by means of codes in 
authorization messages or by other means; and 
‘‘(B) block restricted transactions identi-
fied as a result of the policies and procedures 
developed pursuant to subparagraph (A). 
‘‘(2) The establishment of policies and proce-
dures that prevent or prohibit the acceptance of the
products or services of the payment system in con-
nection with a restricted transaction. 
‘‘(b) REQUIREMENTS
FOR POLICIES
AND PROCE-
DURES.—In prescribing regulations under subsection (a), 
the Secretary and the Board of Governors of the Federal 
Reserve System shall—
‘‘(1) identify types of policies and procedures, 
including nonexclusive examples, which would be 
deemed, as applicable, to be reasonably designed to 
identify and block or otherwise prevent or prohibit 
the acceptance of the products or services with re-
spect to each type of restricted transaction; 
‘‘(2) to the extent practical, permit any partici-
pant in a payment system to choose among alter-
native means of identifying and blocking, or other-
wise preventing or prohibiting the acceptance of the 
products or services of the payment system or par-
ticipant in connection with, restricted transactions; 
and 
‘‘(3) consider exempting certain restricted 
transactions or designated payment systems from 
any requirement imposed under such regulations, if 
the Secretary and the Board jointly find that it is 
not reasonably practical to identify and block, or
otherwise prevent or prohibit the acceptance of, such 
transactions. 
‘‘(c) COMPLIANCE WITH PAYMENT SYSTEM POLI-
CIES AND PROCEDURES.—A financial transaction provider 
shall be considered to be in compliance with the regula-
tions prescribed under subsection (a), if—
‘‘(1) such person relies on and complies with 
the policies and procedures of a designated payment 
system of which it is a member or participant to—
‘‘(A) identify and block restricted trans-
actions; or 
‘‘(B) otherwise prevent or prohibit the ac-
ceptance of the products or services of the pay-
ment system, member, or participant in connec-
tion with restricted transactions; and 
‘‘(2) such policies and procedures of the des-
ignated payment system comply with the require-
ments of regulations prescribed under subsection 
(a). 
‘‘(d) NO LIABILITY FOR BLOCKING OR REFUSING TO 
HONOR RESTRICTED TRANSACTIONS.—A person that 
identifies and blocks a transaction, prevents or prohibits 
the acceptance of its products or services in connection 
with a transaction, or otherwise refuses to honor a trans-
action—
‘‘(1) that is a restricted transaction; 
‘‘(2) that such person reasonably believes to be 
a restricted transaction; or 
‘‘(3) as a designated payment system or a mem-
ber of a designated payment system in reliance on 
the policies and procedures of the payment system, 
in an effort to comply with regulations prescribed 
under subsection (a), 
shall not be liable to any party for such action. 
‘‘(e) REGULATORY ENFORCEMENT.—The require-
ments of this subchapter shall be enforced exclusively by—
‘‘(1) the Federal functional regulators, with re-
spect to the designated payment systems and finan-
cial transaction providers subject to the respective 
jurisdiction of such regulators under section 505(a) 
of the Gramm-Leach-Bliley Act and section 5g of 
the Commodities Exchange Act; and 
‘‘(2) the Federal Trade Commission, with re-
spect to designated payment systems and financial 
transaction providers not otherwise subject to the ju-
risdiction of any Federal functional regulators (in-
cluding the Commission) as described in paragraph 
(1).’’.
SEC. 202. TECHNICAL AND CONFORMING AMENDMENT. 
The table of sections for chapter 53 of title 31, 
United States Code, is amended by adding at the end the 
following:
‘‘SUBCHAPTER IV—POLICIES AND PROCEDURES REQUIRED TO PREVENT 
PAYMENTS FOR UNLAWFUL GAMBLING 
‘‘5361. Definitions. 
‘‘5362. Prohibition on acceptance of any financial instrument for unlawful gam-
bling. 
‘‘5363. Policies and procedures to identify and prevent restricted transactions.’’.
TITLE III—INTERNET GAMBLING 
IN OR THROUGH FOREIGN JU-
RISDICTIONS 
SEC. 301. INTERNET GAMBLING IN OR THROUGH FOREIGN 
JURISDICTIONS. 
(a) IN GENERAL.—In deliberations between the 
United States Government and any other country on 
money laundering, corruption, and crime issues, the 
United States Government should—
(1) encourage cooperation by foreign govern-
ments and relevant international fora in identifying 
whether Internet gambling operations are being used 
for money laundering, corruption, or other crimes; 
(2) advance policies that promote the coopera-
tion of foreign governments, through information 
sharing or other measures, in the enforcement of 
this Act; and
(3) encourage the Financial Action Task Force 
on Money Laundering, in its annual report on 
money laundering typologies, to study the extent to 
which Internet gambling operations are being used 
for money laundering purposes. 
(b) REPORT
REQUIRED.—The Secretary of the 
Treasury shall submit an annual report to the Congress 
on any deliberations between the United States and other 
countries on issues relating to Internet gambling.
Passed the House of Representatives July 11, 2006. 
Attest:
Clerk.