A trust is not a commercial customer under Regulation GG unless the trust operates a business.

Regulation GG requires financial institutions to establish policies to ensure that commercial customers do not originate or receive restricted transactions under the Unlawful Internet Gambling Enforcement Act. The Federal Reserve Board has noted that “for purposes of the rule, a ‘commercial customer’ is a customer that is not a natural person (i.e., a customer that is a business such as a corporation or partnership).”

A trust is a legal entity through which a trustee manages assets and property for the benefit of a third party. In our view, if the third party beneficiary of a trust is a natural person, the trust is not a commercial account under Regulation GG. If the third party beneficiary of a trust is not a natural person, the trust account should be considered a commercial account under Regulation GG.

For resources related to our guidance, please see:

• Regulation GG, 12 CFR 233.2(i) (“Commercial customer means a person that is not a consumer and that contracts with a non-exempt participant in a designated payment system to receive, or otherwise accesses, payment transaction services through that non-exempt participant.”)

• Regulation GG, 12 CFR 233.2(j) (“Consumer means a natural person.”)

• FRB Small Entity Compliance Guide, Regulation GG (“For purposes of the rule, a ‘commercial customer’ is a customer that is not a natural person (i.e., a customer that is a business such as a corporation or partnership).”)