<enum>I</enum><header>Age Verification</header> <section id="H381AE306320A4C66A8D9C1707DA93B83"><enum>101.</enum><header>Age verification requirement</header> <subsection id="HFE69EA057DFD4D15949971E2A700C8B9"><enum>(a)</enum><header>Pornographic material in general</header><text display-inline="yes-display-inline">It is unlawful for an operator of any pornographic website accessible by any computer located within the United States to display any pornographic material, including free content that may be available prior to the purchase of a subscription or product, without first verifying that any user attempting to access their site is 18 years of age or older in a manner consistent with the regulations prescribed under subsection (c).</text> </subsection><subsection id="H0B49CC6A22CA416EBC49DE34AC67A4AB"><enum>(b)</enum><header>Financial transactions requiring age verification</header> <paragraph id="H2AD68C2E69E34B60A159AD1FC6001DFD"><enum>(1)</enum><header>In general</header><text>It is unlawful for an operator of any website accessible by any computer located within the United States to carry out any financial transaction relating to any product or service whose sale or access to persons under a legally specified age is prohibited by law, without first verifying that each user attempting to carry out the transaction meets the legally required age limitation, consistent with the regulations prescribed under subsection (c).</text> </paragraph><paragraph id="HB25DD1E0322D448C97A43BFE90DD4794"><enum>(2)</enum><header>Scope</header><text>The product or services subject to paragraph (1) include alcohol, cigarettes and tobacco, fireworks, gambling, handguns, pornographic material, and any other product or service that the Commission determines is age-restricted under Federal or State law.</text> </paragraph></subsection><subsection id="H8D4856F129664817AEB646AEF39552C6"><enum>(c)</enum><header>Regulations</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Commission, in accordance with section 553 of title 5, United States Code, shall promulgate regulations that—</text> <paragraph id="H59F8102E8F834B2C8E351D262B782340"><enum>(1)</enum><text>require the operator of any website or online service described in subsection (a) or (b) to—</text> <subparagraph id="H2D7D5DE0EB704E90A8449F1C3205B83D"><enum>(A)</enum><text>establish and maintain a system of internal policies, procedures and controls to ensure that no such material is displayed to any user attempting to access their site without first verifying that the user is 18 years or older;</text> </subparagraph><subparagraph id="HC5558C064F7C407997D34DE8CBB40053"><enum>(B)</enum><text>limit the use of any personal information collected by the website to age verification, except with the express consent of the user;</text> </subparagraph><subparagraph id="H7BEE53BBB81947D59F39B1F036869D26"><enum>(C)</enum><text>establish and maintain reasonable procedures to protect the confidentiality, security, and integrity of personal information collected by the website; and</text> </subparagraph><subparagraph id="HDDB684F1F1644BA588CC666DE2E74D89"><enum>(D)</enum><text>undertake an independent audit function to test the system;</text> </subparagraph></paragraph><paragraph id="H60A0251FDC4C4B0286493FC42C0077"><enum>(2)</enum><text>allow the operator to terminate service to any user who fails to provide information sufficient to verify that the user meets the age requirement relating to the products, services, or content provided by the website; and</text> </paragraph><paragraph id="H28E822F31DC04F3EBD70C7B36C2F4DF0"><enum>(3)</enum><text>establish a system under which the Commission develops and maintains a regularly updated list of operators and online sites displaying pornographic material which are not in compliance with this section.</text> </paragraph></subsection></section><section id="H95064DCAE1F34924BE4ECD7600E46CA4"><enum>102.</enum><header>Criminal violations</header> <subsection id="H3148A5199454451BA043EDCE7CB9CBB"><enum>(a)</enum><header>Offenses</header><text display-inline="yes-display-inline">Whoever knowingly and with intent sells or provides access to any product or service to a person under a legally specified age to whom such sale or access is prohibited under applicable law, if the offense affects interstate or foreign commerce, shall be fined under title 18, United States Code, and imprisoned for not more than 10 years, or both.</text> </subsection><subsection id="HD07212B0621441EAA642AAC5F93EAAE2"><enum>(b)</enum><header>Attempts</header><text display-inline="yes-display-inline">Whoever attempts to commit an offense under subsection (a) of this section shall be subject to the same penalties as those prescribed for the offense attempted.</text> </subsection><subsection id="H1199D4D74F874FBA8D061C8224968C15"><enum>(c)</enum><header>Conspiracies</header><text>Whoever is a party to a conspiracy of 2 or more persons to commit an offense under subsection (a) of this section, if any of the parties engages in any conduct in furtherance of such offense, shall be fined an amount not greater than the amount provided as the maximum fine for such offense under subsection (a) of this section or imprisoned not longer than one-half the period provided as the maximum imprisonment for such offense under subsection (c) of this section, or both.</text> </subsection><subsection id="H6F3806174467411B9190CEB8D886719"><enum>(d)</enum><header>Forfeiture procedure</header><text>The forfeiture of property under this section, including any seizure and disposition of the property and any related administrative and judicial proceeding, shall be governed by section 413 of the Controlled Substances Act, except for subsection (d) of that section.</text> </subsection><subsection id="H25F3BED7B2EF476DA134BB4ED78E005F"><enum>(e)</enum><header>Racketeering predicate activity</header><text>An offense under subsection (a) of this section shall constitute racketeering activity within the meaning of section 1981(a) of title 18, United States Code.</text> </subsection></section><section id="HA558A7513F6D488A9F3CF300D76EAD3F"><enum>103.</enum><header>Internet payment service provider requirement</header> <subsection id="H9E4056394588462FA500F43899B50400"><enum>(a)</enum><header>Pornographic material</header><text display-inline="yes-display-inline">Any Internet payment service provider, or business that performs financial transactions for an operator relating to pornographic material, including any bank, credit card company, payments services provider or third-party merchant, shall only process age-verified transactions for Internet sales involving pornography.</text> </subsection><subsection id="H631F35D5D693436E825C6CB49F0B1E5"><enum>(b)</enum><header>Financial transactions</header><text>Any Internet payment service provider, or business that performs financial transactions for an operator relating to any product or service whose sale or access to persons below a legally specified age is prohibited by law, including but not limited to any bank, credit card company, payments services provider or third-party merchant, shall only process age-verified transactions for Internet sales relating to such product or service.</text> </subsection><subsection id="H11810676A42B40068B8D1EE308AB351D"><enum>(c)</enum><header>Safe Harbors</header> <paragraph id="HC4D7AE3C4AA847D7AD00295EB649684E"><enum>(1)</enum><header>Pornographic material</header><text>With regard to financial transactions involving any operator under section 101, any Internet payment service provider may satisfy the requirements of regulations issued under subsection (a) by—</text> <subparagraph id="H83ABE8699C974172BDB5D3F582C7CB47"><enum>(A)</enum><text>receiving a certification from an operator that the operator is in compliance with the regulations issued under section 101(c);</text> </subparagraph><subparagraph id="HD37A924E4DD2433B972405C762C4BD17"><enum>(B)</enum><text>determining that the operator or website is not on the list of entities determined by the Commission not to be in compliance with the regulations issued under section 101(c); and</text> </subparagraph><subparagraph id="H6CAA68A2E1694A49BC334178126DC520"><enum>(C)</enum><text>such other means as the Commission may determine would meet the intent of this Act to protect children from gaining access to Internet pornography.</text> </subparagraph></paragraph><paragraph id="HFE679F5AFE0B443D98BBCC033573C294"><enum>(2)</enum><header>Financial transactions</header><text>With regard to financial transactions involving any operator under section 101 of age-restricted products or services other than pornography, any Internet payment service provider may satisfy the requirements of regulations issued under subsection (b) by—</text> <subparagraph id="H8ABC53C8363D4D338CB4925000DC061B"><enum>(A)</enum><text>receiving a certification from an operator that the operator is in compliance with the regulations issued under section 101(c); or</text> </subparagraph><subparagraph id="H2A987A7E45E140C8B6CC38F09F53BCCC"><enum>(B)</enum><text>such other means as the regulator specified in section 105 shall determine would meet the intent of this Act to protect children from obtaining products and services on the Internet whose sale or access to persons below a legally specified age is prohibited by law.</text> </subparagraph></paragraph></subsection></section><section id="HF817A250907A41EFA13E8B45708DC161"><enum>104.</enum><header>Enforcement of age-verification</header> <subsection id="H2765A8B5D6514AA6A525F0A4BE6EE6E"><enum>(a)</enum><header>Unfair or Deceptive Acts or Practices</header><text>A violation of section 101 or the regulations issued under such section shall be treated as a violation of a rule issued under section 18(a) of the Federal Trade Commission Act (15 U.S.C. 57a) regarding unfair or deceptive acts or practices.</text> </subsection><subsection id="H04437BA65E3749189C629F0600908508"><enum>(b)</enum><header>Powers of Commission</header><text>The Federal Trade Commission shall enforce section 101 in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this title. Any person who violates such regulations shall be subject to the penalties provided in that Act.</text> </subsection></section><section id="H87F28290193A457F8CAFC873BDCC8B2"><enum>105.</enum><header>Enforcement of payment provider requirements</header> <subsection id="H476F7ACA2FAC464DBC39DCB02B7D19A5"><enum>(a)</enum><header>In General</header><text>Section 103, and the regulations required thereunder, shall be enforced exclusively under—</text> <paragraph id="H80BD9748314345429EF817CFB0425395"><enum>(1)</enum><text>section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818), in the case of—</text> <subparagraph id="H8DF45E3C3E2643768F52B10829460033"><enum>(A)</enum><text>a national bank, a Federal branch or Federal agency of a foreign bank, or any subsidiary thereof (other than a broker, dealer, person providing insurance, investment company, or investment adviser), by the Office of the Comptroller of the Currency;</text> </subparagraph><subparagraph id="HA24C562F095F4C828CCFA0CEA2CE6F51"><enum>(B)</enum><text>a member bank of the Federal Reserve System (other than a national bank), a branch or agency of a foreign bank (other than a Federal branch, Federal agency, or insured State branch of a foreign bank), a commercial lending company owned or controlled by a foreign bank, an organization operating under section 25 or 25A of the Federal Reserve Act (12 U.S.C. 601, 604), or a bank holding company and its nonbank subsidiary or affiliate (other than a broker, dealer, person providing insurance, investment company, or investment adviser), by the Board of Governors of the Federal Reserve System;</text> </subparagraph><subparagraph id="HF23472CB5176407FB4724B77FDA21E7E"><enum>(C)</enum><text>a bank, the deposits of which are insured by the Federal Deposit Insurance Corporation (other than a member of the Federal Reserve System), an insured State branch of a foreign bank, or any subsidiary thereof (other than a broker, dealer, person providing insurance, investment company, or investment adviser), by the Board of Directors of the Federal Deposit Insurance Corporation; and</text> </subparagraph><subparagraph id="H2365FB5CE84A40B5B7F782277682085F"><enum>(D)</enum><text>a savings association, the deposits of which are insured by the Federal Deposit Insurance Corporation, or any subsidiary thereof (other than a broker, dealer, person providing insurance, investment company, or investment adviser), by the Director of the Office of Thrift Supervision;</text> </subparagraph></paragraph><paragraph id="H574190BEA2B44289B69049C6A6E31CD6"><enum>(2)</enum><text>the Federal Credit Union Act (12 U.S.C. 1751 et seq.), by the National Credit Union Administration Board with respect to any federally insured credit union;</text> </paragraph><paragraph id="HEE62DA0D44254BA2B5E0202600E3E9A1"><enum>(3)</enum><text>the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), by the Securities and Exchange Commission with respect to any broker or dealer;</text> </paragraph><paragraph id="H96D695293D444B429D141D09F7611F15"><enum>(4)</enum><text>the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.), by the Securities and Exchange Commission with respect to any investment company;</text> </paragraph><paragraph id="H9C6D4E229A26452C8C07E0BFD7AA5ED2"><enum>(5)</enum><text>the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.), by the Securities and Exchange Commission with respect to any investment adviser registered with the Securities and Exchange Commission under that Act;</text> </paragraph><paragraph id="H7815158DB4AB495093415143A3DB9C20"><enum>(6)</enum><text>the Commodity Exchange Act (7 U.S.C. 1 et seq.), by the Commodity Futures Trading Commission with respect to any futures commission merchant, commodity trading advisor, commodity pool operator, or introducing broker;</text> </paragraph><paragraph id="HA7A77566B1DC40F18228E9329DAC8792"><enum>(7)</enum><text>the provisions of title XIII of the Housing and Community Development Act of 1992 (12 U.S.C. 4501 et seq.), by the Director of Federal Housing Enterprise Oversight (and any successor to such functional regulatory agency) with respect to the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and any other entity or enterprise (as defined in that title) subject to the jurisdiction of such functional regulatory agency under that title, including any affiliate of any such enterprise;</text> </paragraph><paragraph id="H0E125D517A2A46ABACB245E8B2DDAED2"><enum>(8)</enum><text>State insurance law, in the case of any person engaged in providing insurance, by the applicable State insurance authority of the State in which the person is domiciled; and</text> </paragraph><paragraph id="H9D2A719127EE4A6FB484525C434EABDA"><enum>(9)</enum><text>the Federal Trade Commission Act (15 U.S.C. 41 et seq.), by the Commission for any other covered entity that is not subject to the jurisdiction of any agency or authority described under paragraphs (1) through (8).</text> </paragraph></subsection><subsection id="HEB5B3F7586BC49D0B1B9C48092016C79"><enum>(b)</enum><header>No Private Right of Action</header> <paragraph id="HECF3AE63A1304CDD869DE9B5FDEB519"><enum>(1)</enum><header>In general</header><text>This Act, and the regulations prescribed under this Act, may not be construed to provide a private right of action, including a class action with respect to any act or practice regulated under this Act.</text> </paragraph><paragraph id="H629477EE728A40C1B1CCB49036EAFB06"><enum>(2)</enum><header>Civil and criminal actions</header><text>No civil or criminal action relating to any act or practice governed under this Act, or the regulations prescribed under this Act, shall be commenced or maintained in any State court or under State law, including a pendent State claim to an action under Federal law.</text> </paragraph></subsection></section><section id="H03240DDE6E0A4A359C18DB69F95F5E66"><enum>106.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title the following definitions apply:</text> <paragraph id="H63A6BCDB6C7C45219143D0F28DB945C7"><enum>(1)</enum><header>Commission</header><text>The term <term>Commission</term> means the Federal Trade Commission.</text> </paragraph><paragraph id="H5EEBC92AA67B4BF600D98060E0280598"><enum>(2)</enum><header>Pornographic material</header><text>The term <term>pornographic material</term> means any film, video, digitally- or computer-manipulated image, digital image, picture, or other matter that contains a depiction of an actual human being engaged in actual sexually explicit conduct that is produced in whole or in part with materials that have been mailed or shipped in interstate or foreign commerce, or is shipped or transported or is intended for shipment or transportation in interstate or foreign commerce and that contains one or more visual depictions of an actual human being engaged in actual sexually explicit conduct made after July 3, 1995.</text> </paragraph><paragraph id="HBE598E8209544319B08E316E47B0007D"><enum>(3)</enum><header>Pornographic web site</header><text>The term <term>pornographic Web site</term> means a person required to maintain documents verifying the age of persons engaged in sexually explicit conduct pursuant to section 2257(a) of title 18, United States Code.</text> </paragraph><paragraph id="HE22FA3F7F0144F7CBBAF8BD3E4339125"><enum>(4)</enum><header>Age restricted</header><text>The term <term>age restricted</term> means a product or service whose access, sale, or use is limited under applicable Federal or State law to persons over a specified age.</text> </paragraph><paragraph id="HF66EEDAAB163488DA37FFF393F001454"><enum>(5)</enum><header>Operator</header><text>The term <term>operator</term> means a person who provides products or services online whose sale is limited by applicable law to persons over the age of 18 or with regard to alcohol, over the age of 21.</text> </paragraph><paragraph id="H2B47B177D8C54B19B1B5A3ADFB823F22"><enum>(6)</enum><header>Payment services provider</header><text>The term <term>payment services provider</term> means any person who engages in any of the following activities:</text> <subparagraph id="HEA78DE26D69942D997EE90F2AA79C192"><enum>(A)</enum><text>Enabling cash to be placed on a payment account as well as all the operations required for operating a payment account.</text> </subparagraph><subparagraph id="H0DCE4C9B47AD4B7887E72BE0584260C1"><enum>(B)</enum><text>Enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account.</text> </subparagraph><subparagraph id="HE685A1A040ED4628AAFD5767C912318E"><enum>(C)</enum><text>Execution of payment transactions, including transfers of funds on a payment account with the user’s payment service provider or with another payment service provider.</text> </subparagraph><subparagraph id="HCA14ECBD0B2B457BB2DA1D828F291CAF"><enum>(D)</enum><text>Execution of direct debits, including one-time direct debits.</text> </subparagraph><subparagraph id="HE504AA408BF746029E2FEB4DC1BC2F45"><enum>(E)</enum><text>Execution of payment transactions through a payment card or a similar device.</text> </subparagraph><subparagraph id="H9B3787FC3CA244D2B7E784996C0AF00"><enum>(F)</enum><text>Execution of credit transfers, including standing orders.</text> </subparagraph><subparagraph id="HBCB9B81124EE41F692677800E45D21DF"><enum>(G)</enum><text>Execution of payment transactions where the funds are covered by a credit line for a payment service user.</text> </subparagraph><subparagraph id="H23F741C05B884607A200A00384B829B"><enum>(H)</enum><text>Execution of direct debits, including one-off direct debits.</text> </subparagraph><subparagraph id="H56E71B37CDC741F79CDA7CC2F6B61049"><enum>(I)</enum><text>Execution of payment transactions through a payment card or a similar device.</text> </subparagraph><subparagraph id="H942BECBDB9FF42B1930047D1DD5C1BFB"><enum>(J)</enum><text>Execution of credit transfers, including standing orders.</text> </subparagraph><subparagraph id="H2B1D330DCD334460967859BCABD01AF"><enum>(K)</enum><text>Issuing and/or acquiring of payment instruments.</text> </subparagraph><subparagraph id="HBF744CC32FDF406CB745AF9B53C7BE80"><enum>(L)</enum><text>Money remittance.</text> </subparagraph><subparagraph id="HF2ED976E8AEE46B0A8FC6608D4808ED9"><enum>(M)</enum><text>Execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator, acting only as an intermediary between the payment service user and the supplier of the goods and services.</text> </subparagraph></paragraph></section>

Short title

This Act may be cited as the

Online Age Verification and Child Safety Act

<enum>I</enum><header>Age Verification</header> <section id="H381AE306320A4C66A8D9C1707DA93B83"><enum>101.</enum><header>Age verification requirement</header> <subsection id="HFE69EA057DFD4D15949971E2A700C8B9"><enum>(a)</enum><header>Pornographic material in general</header><text display-inline="yes-display-inline">It is unlawful for an operator of any pornographic website accessible by any computer located within the United States to display any pornographic material, including free content that may be available prior to the purchase of a subscription or product, without first verifying that any user attempting to access their site is 18 years of age or older in a manner consistent with the regulations prescribed under subsection (c).</text> </subsection><subsection id="H0B49CC6A22CA416EBC49DE34AC67A4AB"><enum>(b)</enum><header>Financial transactions requiring age verification</header> <paragraph id="H2AD68C2E69E34B60A159AD1FC6001DFD"><enum>(1)</enum><header>In general</header><text>It is unlawful for an operator of any website accessible by any computer located within the United States to carry out any financial transaction relating to any product or service whose sale or access to persons under a legally specified age is prohibited by law, without first verifying that each user attempting to carry out the transaction meets the legally required age limitation, consistent with the regulations prescribed under subsection (c).</text> </paragraph><paragraph id="HB25DD1E0322D448C97A43BFE90DD4794"><enum>(2)</enum><header>Scope</header><text>The product or services subject to paragraph (1) include alcohol, cigarettes and tobacco, fireworks, gambling, handguns, pornographic material, and any other product or service that the Commission determines is age-restricted under Federal or State law.</text> </paragraph></subsection><subsection id="H8D4856F129664817AEB646AEF39552C6"><enum>(c)</enum><header>Regulations</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Commission, in accordance with section 553 of title 5, United States Code, shall promulgate regulations that—</text> <paragraph id="H59F8102E8F834B2C8E351D262B782340"><enum>(1)</enum><text>require the operator of any website or online service described in subsection (a) or (b) to—</text> <subparagraph id="H2D7D5DE0EB704E90A8449F1C3205B83D"><enum>(A)</enum><text>establish and maintain a system of internal policies, procedures and controls to ensure that no such material is displayed to any user attempting to access their site without first verifying that the user is 18 years or older;</text> </subparagraph><subparagraph id="HC5558C064F7C407997D34DE8CBB40053"><enum>(B)</enum><text>limit the use of any personal information collected by the website to age verification, except with the express consent of the user;</text> </subparagraph><subparagraph id="H7BEE53BBB81947D59F39B1F036869D26"><enum>(C)</enum><text>establish and maintain reasonable procedures to protect the confidentiality, security, and integrity of personal information collected by the website; and</text> </subparagraph><subparagraph id="HDDB684F1F1644BA588CC666DE2E74D89"><enum>(D)</enum><text>undertake an independent audit function to test the system;</text> </subparagraph></paragraph><paragraph id="H60A0251FDC4C4B0286493FC42C0077"><enum>(2)</enum><text>allow the operator to terminate service to any user who fails to provide information sufficient to verify that the user meets the age requirement relating to the products, services, or content provided by the website; and</text> </paragraph><paragraph id="H28E822F31DC04F3EBD70C7B36C2F4DF0"><enum>(3)</enum><text>establish a system under which the Commission develops and maintains a regularly updated list of operators and online sites displaying pornographic material which are not in compliance with this section.</text> </paragraph></subsection></section><section id="H95064DCAE1F34924BE4ECD7600E46CA4"><enum>102.</enum><header>Criminal violations</header> <subsection id="H3148A5199454451BA043EDCE7CB9CBB"><enum>(a)</enum><header>Offenses</header><text display-inline="yes-display-inline">Whoever knowingly and with intent sells or provides access to any product or service to a person under a legally specified age to whom such sale or access is prohibited under applicable law, if the offense affects interstate or foreign commerce, shall be fined under title 18, United States Code, and imprisoned for not more than 10 years, or both.</text> </subsection><subsection id="HD07212B0621441EAA642AAC5F93EAAE2"><enum>(b)</enum><header>Attempts</header><text display-inline="yes-display-inline">Whoever attempts to commit an offense under subsection (a) of this section shall be subject to the same penalties as those prescribed for the offense attempted.</text> </subsection><subsection id="H1199D4D74F874FBA8D061C8224968C15"><enum>(c)</enum><header>Conspiracies</header><text>Whoever is a party to a conspiracy of 2 or more persons to commit an offense under subsection (a) of this section, if any of the parties engages in any conduct in furtherance of such offense, shall be fined an amount not greater than the amount provided as the maximum fine for such offense under subsection (a) of this section or imprisoned not longer than one-half the period provided as the maximum imprisonment for such offense under subsection (c) of this section, or both.</text> </subsection><subsection id="H6F3806174467411B9190CEB8D886719"><enum>(d)</enum><header>Forfeiture procedure</header><text>The forfeiture of property under this section, including any seizure and disposition of the property and any related administrative and judicial proceeding, shall be governed by section 413 of the Controlled Substances Act, except for subsection (d) of that section.</text> </subsection><subsection id="H25F3BED7B2EF476DA134BB4ED78E005F"><enum>(e)</enum><header>Racketeering predicate activity</header><text>An offense under subsection (a) of this section shall constitute racketeering activity within the meaning of section 1981(a) of title 18, United States Code.</text> </subsection></section><section id="HA558A7513F6D488A9F3CF300D76EAD3F"><enum>103.</enum><header>Internet payment service provider requirement</header> <subsection id="H9E4056394588462FA500F43899B50400"><enum>(a)</enum><header>Pornographic material</header><text display-inline="yes-display-inline">Any Internet payment service provider, or business that performs financial transactions for an operator relating to pornographic material, including any bank, credit card company, payments services provider or third-party merchant, shall only process age-verified transactions for Internet sales involving pornography.</text> </subsection><subsection id="H631F35D5D693436E825C6CB49F0B1E5"><enum>(b)</enum><header>Financial transactions</header><text>Any Internet payment service provider, or business that performs financial transactions for an operator relating to any product or service whose sale or access to persons below a legally specified age is prohibited by law, including but not limited to any bank, credit card company, payments services provider or third-party merchant, shall only process age-verified transactions for Internet sales relating to such product or service.</text> </subsection><subsection id="H11810676A42B40068B8D1EE308AB351D"><enum>(c)</enum><header>Safe Harbors</header> <paragraph id="HC4D7AE3C4AA847D7AD00295EB649684E"><enum>(1)</enum><header>Pornographic material</header><text>With regard to financial transactions involving any operator under section 101, any Internet payment service provider may satisfy the requirements of regulations issued under subsection (a) by—</text> <subparagraph id="H83ABE8699C974172BDB5D3F582C7CB47"><enum>(A)</enum><text>receiving a certification from an operator that the operator is in compliance with the regulations issued under section 101(c);</text> </subparagraph><subparagraph id="HD37A924E4DD2433B972405C762C4BD17"><enum>(B)</enum><text>determining that the operator or website is not on the list of entities determined by the Commission not to be in compliance with the regulations issued under section 101(c); and</text> </subparagraph><subparagraph id="H6CAA68A2E1694A49BC334178126DC520"><enum>(C)</enum><text>such other means as the Commission may determine would meet the intent of this Act to protect children from gaining access to Internet pornography.</text> </subparagraph></paragraph><paragraph id="HFE679F5AFE0B443D98BBCC033573C294"><enum>(2)</enum><header>Financial transactions</header><text>With regard to financial transactions involving any operator under section 101 of age-restricted products or services other than pornography, any Internet payment service provider may satisfy the requirements of regulations issued under subsection (b) by—</text> <subparagraph id="H8ABC53C8363D4D338CB4925000DC061B"><enum>(A)</enum><text>receiving a certification from an operator that the operator is in compliance with the regulations issued under section 101(c); or</text> </subparagraph><subparagraph id="H2A987A7E45E140C8B6CC38F09F53BCCC"><enum>(B)</enum><text>such other means as the regulator specified in section 105 shall determine would meet the intent of this Act to protect children from obtaining products and services on the Internet whose sale or access to persons below a legally specified age is prohibited by law.</text> </subparagraph></paragraph></subsection></section><section id="HF817A250907A41EFA13E8B45708DC161"><enum>104.</enum><header>Enforcement of age-verification</header> <subsection id="H2765A8B5D6514AA6A525F0A4BE6EE6E"><enum>(a)</enum><header>Unfair or Deceptive Acts or Practices</header><text>A violation of section 101 or the regulations issued under such section shall be treated as a violation of a rule issued under section 18(a) of the Federal Trade Commission Act (15 U.S.C. 57a) regarding unfair or deceptive acts or practices.</text> </subsection><subsection id="H04437BA65E3749189C629F0600908508"><enum>(b)</enum><header>Powers of Commission</header><text>The Federal Trade Commission shall enforce section 101 in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this title. Any person who violates such regulations shall be subject to the penalties provided in that Act.</text> </subsection></section><section id="H87F28290193A457F8CAFC873BDCC8B2"><enum>105.</enum><header>Enforcement of payment provider requirements</header> <subsection id="H476F7ACA2FAC464DBC39DCB02B7D19A5"><enum>(a)</enum><header>In General</header><text>Section 103, and the regulations required thereunder, shall be enforced exclusively under—</text> <paragraph id="H80BD9748314345429EF817CFB0425395"><enum>(1)</enum><text>section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818), in the case of—</text> <subparagraph id="H8DF45E3C3E2643768F52B10829460033"><enum>(A)</enum><text>a national bank, a Federal branch or Federal agency of a foreign bank, or any subsidiary thereof (other than a broker, dealer, person providing insurance, investment company, or investment adviser), by the Office of the Comptroller of the Currency;</text> </subparagraph><subparagraph id="HA24C562F095F4C828CCFA0CEA2CE6F51"><enum>(B)</enum><text>a member bank of the Federal Reserve System (other than a national bank), a branch or agency of a foreign bank (other than a Federal branch, Federal agency, or insured State branch of a foreign bank), a commercial lending company owned or controlled by a foreign bank, an organization operating under section 25 or 25A of the Federal Reserve Act (12 U.S.C. 601, 604), or a bank holding company and its nonbank subsidiary or affiliate (other than a broker, dealer, person providing insurance, investment company, or investment adviser), by the Board of Governors of the Federal Reserve System;</text> </subparagraph><subparagraph id="HF23472CB5176407FB4724B77FDA21E7E"><enum>(C)</enum><text>a bank, the deposits of which are insured by the Federal Deposit Insurance Corporation (other than a member of the Federal Reserve System), an insured State branch of a foreign bank, or any subsidiary thereof (other than a broker, dealer, person providing insurance, investment company, or investment adviser), by the Board of Directors of the Federal Deposit Insurance Corporation; and</text> </subparagraph><subparagraph id="H2365FB5CE84A40B5B7F782277682085F"><enum>(D)</enum><text>a savings association, the deposits of which are insured by the Federal Deposit Insurance Corporation, or any subsidiary thereof (other than a broker, dealer, person providing insurance, investment company, or investment adviser), by the Director of the Office of Thrift Supervision;</text> </subparagraph></paragraph><paragraph id="H574190BEA2B44289B69049C6A6E31CD6"><enum>(2)</enum><text>the Federal Credit Union Act (12 U.S.C. 1751 et seq.), by the National Credit Union Administration Board with respect to any federally insured credit union;</text> </paragraph><paragraph id="HEE62DA0D44254BA2B5E0202600E3E9A1"><enum>(3)</enum><text>the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), by the Securities and Exchange Commission with respect to any broker or dealer;</text> </paragraph><paragraph id="H96D695293D444B429D141D09F7611F15"><enum>(4)</enum><text>the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.), by the Securities and Exchange Commission with respect to any investment company;</text> </paragraph><paragraph id="H9C6D4E229A26452C8C07E0BFD7AA5ED2"><enum>(5)</enum><text>the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.), by the Securities and Exchange Commission with respect to any investment adviser registered with the Securities and Exchange Commission under that Act;</text> </paragraph><paragraph id="H7815158DB4AB495093415143A3DB9C20"><enum>(6)</enum><text>the Commodity Exchange Act (7 U.S.C. 1 et seq.), by the Commodity Futures Trading Commission with respect to any futures commission merchant, commodity trading advisor, commodity pool operator, or introducing broker;</text> </paragraph><paragraph id="HA7A77566B1DC40F18228E9329DAC8792"><enum>(7)</enum><text>the provisions of title XIII of the Housing and Community Development Act of 1992 (12 U.S.C. 4501 et seq.), by the Director of Federal Housing Enterprise Oversight (and any successor to such functional regulatory agency) with respect to the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and any other entity or enterprise (as defined in that title) subject to the jurisdiction of such functional regulatory agency under that title, including any affiliate of any such enterprise;</text> </paragraph><paragraph id="H0E125D517A2A46ABACB245E8B2DDAED2"><enum>(8)</enum><text>State insurance law, in the case of any person engaged in providing insurance, by the applicable State insurance authority of the State in which the person is domiciled; and</text> </paragraph><paragraph id="H9D2A719127EE4A6FB484525C434EABDA"><enum>(9)</enum><text>the Federal Trade Commission Act (15 U.S.C. 41 et seq.), by the Commission for any other covered entity that is not subject to the jurisdiction of any agency or authority described under paragraphs (1) through (8).</text> </paragraph></subsection><subsection id="HEB5B3F7586BC49D0B1B9C48092016C79"><enum>(b)</enum><header>No Private Right of Action</header> <paragraph id="HECF3AE63A1304CDD869DE9B5FDEB519"><enum>(1)</enum><header>In general</header><text>This Act, and the regulations prescribed under this Act, may not be construed to provide a private right of action, including a class action with respect to any act or practice regulated under this Act.</text> </paragraph><paragraph id="H629477EE728A40C1B1CCB49036EAFB06"><enum>(2)</enum><header>Civil and criminal actions</header><text>No civil or criminal action relating to any act or practice governed under this Act, or the regulations prescribed under this Act, shall be commenced or maintained in any State court or under State law, including a pendent State claim to an action under Federal law.</text> </paragraph></subsection></section><section id="H03240DDE6E0A4A359C18DB69F95F5E66"><enum>106.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title the following definitions apply:</text> <paragraph id="H63A6BCDB6C7C45219143D0F28DB945C7"><enum>(1)</enum><header>Commission</header><text>The term <term>Commission</term> means the Federal Trade Commission.</text> </paragraph><paragraph id="H5EEBC92AA67B4BF600D98060E0280598"><enum>(2)</enum><header>Pornographic material</header><text>The term <term>pornographic material</term> means any film, video, digitally- or computer-manipulated image, digital image, picture, or other matter that contains a depiction of an actual human being engaged in actual sexually explicit conduct that is produced in whole or in part with materials that have been mailed or shipped in interstate or foreign commerce, or is shipped or transported or is intended for shipment or transportation in interstate or foreign commerce and that contains one or more visual depictions of an actual human being engaged in actual sexually explicit conduct made after July 3, 1995.</text> </paragraph><paragraph id="HBE598E8209544319B08E316E47B0007D"><enum>(3)</enum><header>Pornographic web site</header><text>The term <term>pornographic Web site</term> means a person required to maintain documents verifying the age of persons engaged in sexually explicit conduct pursuant to section 2257(a) of title 18, United States Code.</text> </paragraph><paragraph id="HE22FA3F7F0144F7CBBAF8BD3E4339125"><enum>(4)</enum><header>Age restricted</header><text>The term <term>age restricted</term> means a product or service whose access, sale, or use is limited under applicable Federal or State law to persons over a specified age.</text> </paragraph><paragraph id="HF66EEDAAB163488DA37FFF393F001454"><enum>(5)</enum><header>Operator</header><text>The term <term>operator</term> means a person who provides products or services online whose sale is limited by applicable law to persons over the age of 18 or with regard to alcohol, over the age of 21.</text> </paragraph><paragraph id="H2B47B177D8C54B19B1B5A3ADFB823F22"><enum>(6)</enum><header>Payment services provider</header><text>The term <term>payment services provider</term> means any person who engages in any of the following activities:</text> <subparagraph id="HEA78DE26D69942D997EE90F2AA79C192"><enum>(A)</enum><text>Enabling cash to be placed on a payment account as well as all the operations required for operating a payment account.</text> </subparagraph><subparagraph id="H0DCE4C9B47AD4B7887E72BE0584260C1"><enum>(B)</enum><text>Enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account.</text> </subparagraph><subparagraph id="HE685A1A040ED4628AAFD5767C912318E"><enum>(C)</enum><text>Execution of payment transactions, including transfers of funds on a payment account with the user’s payment service provider or with another payment service provider.</text> </subparagraph><subparagraph id="HCA14ECBD0B2B457BB2DA1D828F291CAF"><enum>(D)</enum><text>Execution of direct debits, including one-time direct debits.</text> </subparagraph><subparagraph id="HE504AA408BF746029E2FEB4DC1BC2F45"><enum>(E)</enum><text>Execution of payment transactions through a payment card or a similar device.</text> </subparagraph><subparagraph id="H9B3787FC3CA244D2B7E784996C0AF00"><enum>(F)</enum><text>Execution of credit transfers, including standing orders.</text> </subparagraph><subparagraph id="HBCB9B81124EE41F692677800E45D21DF"><enum>(G)</enum><text>Execution of payment transactions where the funds are covered by a credit line for a payment service user.</text> </subparagraph><subparagraph id="H23F741C05B884607A200A00384B829B"><enum>(H)</enum><text>Execution of direct debits, including one-off direct debits.</text> </subparagraph><subparagraph id="H56E71B37CDC741F79CDA7CC2F6B61049"><enum>(I)</enum><text>Execution of payment transactions through a payment card or a similar device.</text> </subparagraph><subparagraph id="H942BECBDB9FF42B1930047D1DD5C1BFB"><enum>(J)</enum><text>Execution of credit transfers, including standing orders.</text> </subparagraph><subparagraph id="H2B1D330DCD334460967859BCABD01AF"><enum>(K)</enum><text>Issuing and/or acquiring of payment instruments.</text> </subparagraph><subparagraph id="HBF744CC32FDF406CB745AF9B53C7BE80"><enum>(L)</enum><text>Money remittance.</text> </subparagraph><subparagraph id="HF2ED976E8AEE46B0A8FC6608D4808ED9"><enum>(M)</enum><text>Execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator, acting only as an intermediary between the payment service user and the supplier of the goods and services.</text> </subparagraph></paragraph></section><enum>II</enum><header>Enhancing Anti-Money Laundering Laws to Cover Online Transactions</header> <section id="H93E3DBCDE9F64CACB730577507B6D8AF"><enum>201.</enum><header>Financial institutions specified in subchapter ii of chapter 53 of title 31, United States Code</header> <subsection id="HA496E3D97E6F46BCA38FEFD5AE00C4EF"><enum>(a)</enum><header>Payment Services Providers</header><text>Section 5312(c) of title 31, United States Code, is amended by adding at the end the following:</text> <quoted-block id="H93BBBAB2BCA94999BFBB21125D5F6DF3" style="OLC"> <paragraph id="H9DFE96CB63BA464DBBCE5222003627B0"><enum>(2)</enum><text>Any payments services provider that is not otherwise covered as a financial institution under this subsection, including any person who engages in any of the following activities:</text> <subparagraph id="H7A6FB0B316A0412500A43C9418FD12C"><enum>(A)</enum><text>Enabling cash to be placed on a payment account as well as all the operations required for operating a payment account.</text> </subparagraph><subparagraph id="H598053B4229D4A5600B4C8B0523D1852"><enum>(B)</enum><text>Enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account.</text> </subparagraph><subparagraph id="H8ACA958AEE464A6FAC4DF5005E30C979"><enum>(C)</enum><text>Execution of payment transactions, including transfers of funds on a payment account with the user’s payment service provider or with another payment service provider.</text> </subparagraph><subparagraph id="H80CE71C8990741B8B3931816FBC8C600"><enum>(D)</enum><text>Execution of direct debits, including one-time direct debits.</text> </subparagraph><subparagraph id="H6504006F79B846159057337240E7E0EF"><enum>(E)</enum><text>Execution of payment transactions through a payment card or a similar device.</text> </subparagraph><subparagraph id="H6245A031082A43B693851E2C28C8CCFB"><enum>(F)</enum><text>Execution of credit transfers, including standing orders.</text> </subparagraph><subparagraph id="HB6269DADF0D34FF592AD81DBC55B8487"><enum>(G)</enum><text>Execution of payment transactions where the funds are covered by a credit line for a payment service user.</text> </subparagraph><subparagraph id="H12E402766E6A41AC9C2713CDEF7E7599"><enum>(H)</enum><text>Execution of direct debits, including one-off direct debits.</text> </subparagraph><subparagraph id="H6B6D8CE150164890852BEB3E8314D523"><enum>(I)</enum><text>Execution of payment transactions through a payment card or a similar device.</text> </subparagraph><subparagraph id="HA6312C1B752C4856AE57007F245BA205"><enum>(J)</enum><text>Execution of credit transfers, including standing orders.</text> </subparagraph><subparagraph id="HE7CD7E2820F54C2B8874811B2552CCA5"><enum>(K)</enum><text>Issuing or acquiring of payment instruments.</text> </subparagraph><subparagraph id="H196952E7E6F2412AB46FF3BDF4EDDAD8"><enum>(L)</enum><text>Money remittance.</text> </subparagraph><subparagraph id="H16A969B9ECAB4E8AAAA164384E79A8A3"><enum>(M)</enum><text>Execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator, acting only as an intermediary between the payment service user and the supplier of the goods and services.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H89459E508BEF44E6ABC2FDD67E7C8713"><enum>(b)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall take effect at the end of the 180-day period beginning on the date of enactment of this Act.</text> </subsection><subsection id="H7794E54175EE4005A538E44F596F262D"><enum>(c)</enum><header>Date of application of regulations; factors To be taken into account</header><text>Before the end of the 180-day period beginning on the date of enactment of this Act, the Secretary of the Treasury shall prescribe regulations that consider the extent to which the requirements imposed under this section are commensurate with the size, location, and activities of the financial institutions to which such regulations apply.</text> </subsection></section><section id="H4FBE5A245A4A472FA6967E7BD5A9125"><enum>202.</enum><header>Currencies not backed by United Nations member states</header> <subsection id="H2EC11749C74F43839742C55F3701E318"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">No financial institution may process a financial transaction denominated in or otherwise involving an electronic currency not backed by the full faith and credit of a member state of the United Nations.</text> </subsection><subsection id="H3BAE9884BE5F4103B7F19EE93CEE3DF7"><enum>(b)</enum><header>Exclusion</header><text display-inline="yes-display-inline">For the purposes of this subsection, an electronic currency does not include—</text> <paragraph id="H728B713E313846A1AE35F94259338B46"><enum>(1)</enum><text>any activity governed by the securities laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934 for the purchase or sale of securities (as that term is defined in section 3(a)(10) of that Act);</text> </paragraph><paragraph id="HB9974A3CD6E044F0BA27FB008295A37B"><enum>(2)</enum><text>any transaction conducted on or subject to the rules of a registered entity or exempt board of trade under the Commodity Exchange Act;</text> </paragraph><paragraph id="HA145FF6185F34EDFA9D651A88839F747"><enum>(3)</enum><text>any over-the-counter derivative instrument;</text> </paragraph><paragraph id="HBFC7CDF2E8EF42A897C7BCDAF906E7F0"><enum>(4)</enum><text>any contract of indemnity or guarantee;</text> </paragraph><paragraph id="HB0A699CC24D443709614DCA35956062D"><enum>(5)</enum><text>any contract for insurance;</text> </paragraph><paragraph id="HA7B4065AADC546438FE3DE4E64BBB828"><enum>(6)</enum><text>any deposit or other transaction with an insured depository institution; and</text> </paragraph><paragraph id="H77C037865FC74E3FB31C46B1CA00AA94"><enum>(7)</enum><text>any other form of financial instrument or payment, however denominated, that the Secretary determines should not be subject to the prohibition of this subsection.</text> </paragraph></subsection><subsection id="H4BD4BEC92C5240DD96DFC35ADB2810"><enum>(c)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall take effect at the end of the 180-day period beginning on the date of enactment of this Act.</text> </subsection><subsection id="HE8E510DE8BF04E76A6EC2C37983D205D"><enum>(d)</enum><header>Date of application of regulations</header><text>Before the end of the 180-day period beginning on the date of enactment of this Act, the Secretary shall prescribe regulations to implement the prohibitions set forth in subsection (a).</text> </subsection></section><section id="H17C633D570B94054B6ED7D2B4EEF427B"><enum>203.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title, the term <term>Secretary</term> means Secretary of the Treasury.</text> </section>