31 U.S. Code § 5364 - Policies and procedures to identify and prevent restricted transactions
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(a) Regulations.— Before the end of the 270-day period beginning on the date of the enactment of this subchapter, 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) requiring each designated payment system, and all participants therein, to identify and block or otherwise prevent or prohibit 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 procedures that—
(A) allow the payment system and any person involved in the payment system to identify restricted transactions by means of codes in authorization messages or by other means; and
(b) Requirements for Policies and Procedures.— 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 respect to each type of restricted transaction;
(2) to the extent practical, permit any participant in a payment system to choose among alternative means of identifying and blocking, or otherwise preventing or prohibiting the acceptance of the products or services of the payment system or participant in connection with, restricted transactions;
(3) exempt 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; and
(c) Compliance With Payment System Policies and Procedures.— A financial transaction provider shall be considered to be in compliance with the regulations 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—
(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 transaction—
(3) as a designated payment system or a member 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 requirements under this section shall be enforced exclusively by—
(1) the Federal functional regulators, with respect to the designated payment systems and financial 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
Source(Added Pub. L. 109–347, title VIII, § 802(a),Oct. 13, 2006, 120 Stat. 1958.)
References in Text
The date of the enactment of this subchapter, referred to in subsec. (a), is the date of enactment of Pub. L. 109–347, which was approved Oct. 13, 2006.
Section 505(a) of the Gramm-Leach-Bliley Act, referred to in subsec. (e)(1), is classified to section 6805 (a) of Title 15, Commerce and Trade.
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