cfpb remittance transfer rulecfpb remittance transfer rule

This optional disclosure is shown on Model A-40. The Electronic Code of Federal Regulations (eCFR) is a continuously updated . For any subsequent preauthorized remittance transfer subject to 1005.36(d)(2)(ii), the future date of transfer must be provided on any receipt provided for the initial transfer in that series of preauthorized remittance transfers, or where permitted, or disclosed as permitted by 1005.31(a)(3) and (a)(5), in accordance with 1005.36(a)(1)(i). Written disclosures required by this subpart or permitted by paragraph (b)(1)(viii) of this section must be provided on the front of the page on which the disclosure is printed. The Consumer Financial Protection Bureau ("CFPB") has amended the international remittance transfer rule (the "Remittance Rule") to increase the normal course of business safe harbor threshold from 100 remittance transfers to 500 remittance transfers annually, and to create two new tailored permanent exceptions that permit insured institutions t. Disclosures are clear and conspicuous for purposes of subpart B if they are readily understandable and, in the case of written and electronic disclosures, the location and type size are readily noticeable to senders. The Bureau will publish a list of any other foreign language Web sites that provide information regarding remittance transfers. Transfers also must be for more than $15. A provider need not provide the exchange rate disclosure required by 1005.31(b)(1)(iv) if a recipient receives funds in the currency in which the remittance transfer is funded, or if funds are delivered into an account denominated in the currency in which the remittance transfer is funded. For example, a provider would disclose all transfer fees using the term Transfer Fees or a substantially similar term and would separately disclose all transfer taxes using the term Transfer Taxes or a substantially similar term. (1) Grouping. However, if any of the disclosures required by 1005.31(b) or permitted by 1005.31(b)(1)(viii) are not accurate when a sender makes payment for the remittance transfer, a provider must give new disclosures before accepting payment. Rules Browse remittance transfer rule to see specific amendments to Regulation E. Browse final rule defining larger participants in the international money transfer market. The confirmation or other identification code; vi. The CFPB has exclusive Regulation E rulemaking authority and supervisory jurisdiction for banks 2 with assets over $10 billion. 2. Exchange rate for calculation. Request to send a remittance transfer. Once the CFPB determines which consumer payment companies will come under its direct supervision, agency examiners will be able to closely monitor them for compliance with Reg E, the operating rules for the Electronic Fund Transfer Act, as well as for unfair, deceptive, and abusive acts and practices (UDAAP) that potentially harm consumers. (2) Proximity. Disclosures required by 1005.31(b) need only be provided to the extent applicable. (i) The transaction is conducted entirely by telephone via mobile application or text message; (iii) The provider discloses orally or via mobile application or text message a statement about the rights of the sender regarding cancellation required by paragraph (b)(2)(iv) of this section pursuant to the timing requirements in paragraph (e)(1) of this section; and. The combined disclosure must be provided to the sender when the sender requests the remittance transfer, but prior to payment for the transfer, pursuant to 1005.31(e)(1), and the proof of payment must be provided when payment is made for the remittance transfer. 3. An advertisement, solicitation, or marketing that is considered to be made at an office does not include general advertisements, solicitations, or marketing that are not intended to be made at a particular office. Regulations and official interpretations Browse the Remittance Rule (Subpart B of Regulation E, 12 CFR 1005) on: Interactive Bureau Regulations | eCFR iii. 1. Any such figure must be disclosed in the currency in which the funds will be received, using the language set forth in Model Forms A-30(b) through (d) of Appendix A to this part, as appropriate, or substantially similar language. Subscribe to our RSS feed to get the latest content in your reader. For disclosures provided pursuant to 1005.33 for error resolution purposes, the relevant office is the office in which the sender first asserts the error, not the office where the transaction was conducted. Under 1005.31(g)(1), a remittance transfer provider may, but need not, provide the sender with a written or electronic disclosure that is in English and, if applicable, in each foreign language that the remittance transfer provider principally uses to advertise, solicit, or market either orally, in writing, or electronically, at the office in which a sender conducts a transaction or asserts an error, respectively. 7. Conversely, a sender who asks the provider at an agent location to send money to a recipient in Mexico and provides the sender and recipient information to the provider has requested a remittance transfer. Similarly, a Web site need not be disclosed if the provider does not maintain a Web site. Remittance Transfers under the Electronic Fund Transfer Act (Regulation E) AGENCY: Bureau of Consumer Financial Protection. PDF Billing Code: 4810-am-p Bureau of Consumer Financial Protection 12 Cfr In contrast, the fees required to be disclosed by 1005.31(b)(1)(vi) are any covered third-party fees as defined in 1005.30(h)(1). CFPB releases assessment report on remittance rule (iv) The provider discloses orally, as each is applicable, the information required by paragraph (b)(2)(vii) of this section and the information required by 1005.36(d)(1)(i)(A), with respect to transfers subject to 1005.36(d)(2)(ii), pursuant to the timing requirements in paragraph (e)(1) of this section. First, the Bureau proposes to increase the Rule's safe harbor threshold, mitigating . PDF Summary of the final remittance transfer rule (amendment to Regulation E) 1005.30 Remittance transfer definitions. | Consumer Financial CFPB's First Remittance Transfer Rule Enforcement Action Disclosures required by this subpart or permitted by paragraph (b)(1)(viii) of this section or 1005.33(h)(3) may contain commonly accepted or readily understandable abbreviations or symbols. When a remittance transfer provider knows the non-covered third-party fees or taxes collected on the remittance transfer by a person other than the provider that will apply to a particular transaction, 1005.31(b)(1)(viii) permits the provider to disclose the amount of such fees and taxes. 1005.14 Electronic fund transfer service provider not holding consumer's account. The Consumer Financial Protection Bureau has issued rules to protect consumers who send money electronically to foreign countries. Primarily used. See interpretation of 31(b)(2) Receipt in Supplement I. A remittance transfer provider may choose to omit an item of information required by 1005.31(b) if it is inapplicable to a particular transaction. Transfer date disclosures. The Remittance Rule imposes requirements on entities that send international money transfers, or remittance transfers, on behalf of consumers. The following example demonstrates how the information required by 1005.31(b)(2)(vii) and 1005.36(d)(1) should be disclosed on receipts: On July 1, a sender instructs the provider to send a preauthorized remittance transfer of US$100 each week to a designated recipient. The dollar volume of remittance transfers by MSBs was also increasing both before and after the rule became effective. 1 CFPB subsequently amended the regulations implementing the remittance transfer rules. CFPB to amend Remittance Transfer Rule - Buckley LLP The prominence of the advertising, soliciting, or marketing of remittance transfer services in that foreign language at that office; and. For example, disclosures may be provided on a register receipt or on an 8.5 inch by 11 inch sheet of paper. The exchange rate used to calculate this amount is the exchange rate in paragraph (b)(1)(iv) of this section, including an estimated exchange rate to the extent permitted by 1005.32, prior to any rounding of the exchange rate. See interpretation of 31(b)(1)(iv) Exchange Rate in Supplement I. ii. D. Printed material in a foreign language on any exterior or interior sign at an office. Making disclosures in a foreign language that are required by Federal or other applicable law. For example, if a sender conducts a transaction via text message on a mobile telephone, the remittance transfer provider may call the sender and orally provide the required pre-payment disclosures. CFPB's First Remittance Transfer Rule Enforcement Action Docket No. For example, a remittance transfer provider could give the sender the disclosures after the sender pays for the remittance transfer, but before the sender leaves the counter. On December 3, the CFPB issued a Notice of Proposed Rulemaking (NPRM) relating to the Remittance Transfer Rule (Rule), which implements the Electronic Fund Transfer Act's (EFTA) protections for consumers sending international money transfers, or remittance transfers. The Senators urge the CFPB to require transfer providers to disclose the total cost of the remittance transfer and rescind the permanent exemption for estimates of third party fees.Unfortunately, the Senators do not offer a practical solution for providing these exact third party fees and instead "encourage the adoption of new technology that wo. The exchange rate used to calculate any disclosed non-covered third-party fees or taxes collected on the remittance transfer by a person other than the provider is the exchange rate in paragraph (b)(1)(iv) of this section, including an estimated exchange rate to the extent permitted by 1005.32, prior to any rounding of the exchange rate; 1. Section 1005.32(b)(3) additionally permits a provider to disclose an estimate of such fees and taxes, provided any estimates are based on reasonable source of information. A sender initiates a conversation with the remittance transfer provider with a greeting in English and states in English that there was a problem with a prior remittance transfer to Vietnam. Required disclosures under 1005.31(b)(1)(viii) may only be provided to the extent applicable. For example, a provider may disclose information about the State agency which granted its license. Authority: 12 U.S . (1) Except as provided in 1005.36(a), a pre-payment disclosure required by paragraph (b)(1) of this section or a combined disclosure required by paragraph (b)(3) of this section must be provided to the sender when the sender requests the remittance transfer, but prior to payment for the transfer. x. A provider may provide a statement that funds may be available to the designated recipient earlier than the date disclosed, using the term may be available sooner or a substantially similar term; (iii) The name and, if provided by the sender, the telephone number and/or address of the designated recipient, using the term Recipient or a substantially similar term; (iv) A statement about the rights of the sender regarding the resolution of errors and cancellation, using language set forth in Model Form A-37 of Appendix A to this part or substantially similar language. Number of foreign languages used in written disclosure. BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1005 [Docket No. (ii) The foreign language primarily used by the sender with the remittance transfer provider to conduct the transaction (or for written or electronic disclosures made pursuant to 1005.33, in the foreign language primarily used by the sender with the remittance transfer provider to assert the error), provided that such foreign language is principally used by the remittance transfer provider to advertise, solicit, or market remittance transfer services, either orally, in writing, or electronically, at the office in which a sender conducts a transaction or asserts an error, respectively. If the sender primarily uses a foreign language with the remittance transfer provider to conduct the transaction or assert an error that the remittance transfer provider does not use to advertise, solicit, or market either orally, in writing, or electronically, at the office in which the sender conducts the transaction or asserts the error, respectively, the remittance transfer provider may provide a written or electronic disclosure solely in English. Apple, Google Likely Targets in Consumer Watchdog Payments Rule 1026.32 Requirements for high-cost mortgages. First, under 1005.31(b)(1)(i), a provider must disclose the transfer amount in the currency in which the remittance transfer is funded to show the calculation of the total amount of the transaction. In addition, this bulletin summarizes the Consumer Financial Protection Bureau's (CFPB) Regulation E amendments regarding remittance transfers that became effective in July 2020. In November 2016 the company "developed a 'CFPB Policy' that consisted of 1.5 pages of general Remittance Transfer Rule information copied directly from the Bureau's website," but which . xi. The rule is available at: https://files.consumerfinance.gov/f/documents/cfpb_remittance-transfers_final-rule_2020-05.pdf. Section 1005.31(a)(5) applies only to transactions conducted entirely by mobile telephone via mobile application or text message. The foreign language used in such an advertisement is not considered to be principally used at that office based on the incidental specific foreign language term used. Appendix A to Part 1005 Model Disclosure Clauses and Forms, Appendix C to Part 1005 Issuance of Official Interpretations, Comment for 1005.4 General Disclosure Requirements; Jointly Offered Services, Comment for 1005.5 Issuance of Access Devices, Comment for 1005.6 Liability of Consumer for Unauthorized Transfers, Comment for 1005.8 Change-in-Terms Notice; Error Resolution Notice, Comment for 1005.9 Receipts at Electronic Terminals; Periodic Statements, Comment for 1005.10 Preauthorized Transfers, Comment for 1005.11 Procedures for Resolving Errors, Comment for 1005.12 Relation to Other Laws, Comment for 1005.13 Administrative Enforcement; Record Retention, Comment for 1005.14 Electronic Fund Transfer Service Provider Not Holding Consumer's Account, Comment for 1005.15 Electronic Fund Transfer of Government Benefits, Comment for 1005.17 Requirements for Overdraft Services, Comment for 1005.18 Requirements for Financial Institutions Offering Prepaid Accounts, Comment for 1005.19 Internet Posting of Prepaid Account Agreements, Comment for 1005.20 Requirements for Gift Cards and Gift Certificates, Comment for 1005.30 - Remittance Transfer Definitions, Comment for 1005.33 - Procedures for Resolving Errors, Comment for 1005.34 - Procedures for Cancellation and Refund of Remittance Transfers, Comment for 1005.36 - Transfers Scheduled Before the Date of Transfer, Comment for Appendix A - Model Disclosure Clauses and Forms. (5) Disclosures for mobile application or text message transactions. Abbreviations and symbols. These recipients can include friends, family members, or businesses. Remittance transfer providers that offer remittance transfers scheduled three or more business days before the date of the transfer, as well as remittance transfers scheduled fewer than three business days before the date of the transfer, may meet the cancellation disclosure requirements in 1005.31(b)(2)(iv) by describing the three-business-day and 30-minute cancellation periods on the same disclosure and using a checkbox or other method to clearly designate the applicable cancellation period. The exchange rate used by the provider for the remittance transfer need not be set by that provider. For purposes of 1005.31(c)(4), the following is directly related information: ii. CFPB Amends the Remittance Rule to Raise Safe Harbor Threshold and Terms may be more specific than those provided. The proof of payment must be clear and conspicuous, provided in writing or electronically, and provided in a retainable form. If a provider is licensed in multiple States, and the State agency that licenses the provider with respect to the remittance transfer is determined by a sender's location, a provider may make the determination as to the State in which the sender is located based on information that is provided by the sender and on any records associated with the sender. 2. A provider could also send multiple text messages sequentially to provide the full disclosure. (3) Prominence and size. For example, a provider may know that the designated recipient's institution imposes an incoming wire fee for receiving a transfer. On May 22, 2013, the Consumer Financial Protection Bureau (CFPB) announced amendments to Regulation E, revising the remittance transfers rule requirements and establishing a new effective date of October 28, 2013. . See interpretation of 31(c)(1) Grouping in Supplement I. If the remittance transfer provider chooses the alternative method, it may provide disclosures in a single document with both languages or in two separate documents with one document in English and the other document in the applicable foreign language.