HIV-1, the causative agent of acquired immunodeficiency syndrome (AIDS), contains an RNA genome that produces a chromosomally integrated DNA during the replicative cycle. Activation of HIV-1 gene expressions by the transactivator Tat is dependent on an RNA regulatory element (TAR) located downstream of the transcription initiation site.

The protein encoded by this gene is a transcriptional repressor that binds to chromosomally integrated TAR DNA and represses HIV-1 transcription. In addition, this protein regulates alternate splicing of the CFTR gene.  A similar pseudogene is present on chromosome 20.