A sender is not considered to have provided incorrect or insufficient information for purposes of 1005.33(c)(2)(iii) if the provider discloses the incorrect location where the transfer may be picked up, gives the wrong confirmation number/code for the transfer, or otherwise miscommunicates information necessary for the designated recipient to pick-up the transfer. 1. (a) Sender right of cancellation and refund. Similarly, if no reasonably available means exist to verify the accuracy of the recipient institution identifier, 1005.33(h)(2) would be satisfied and thus the exception in 1005.33(a)(1)(iv)(D) also will apply, again assuming the provider can satisfy the other conditions in 1005.33(h). When a remittance transfer provider determines that an error occurred in a manner or amount different from that described by the sender, it must comply with the requirements of both 1005.33(c) and (d), as applicable. In addition to following the procedures specified in paragraph (c) of this section, the remittance transfer provider shall follow the procedures set forth in this paragraph (d) if it determines that no error occurred or that an error occurred in a manner or amount different from that described by the sender. CFPB's Amended Remittance Transfer Rule Compliance Deadline - NCUA 1005.33 Procedures for resolving errors. 5. These recipients can include friends, family members, or businesses. Transfers also must be for more than $15. For example, if the sender originally provided a credit card as payment for the transfer, the remittance transfer provider may issue a credit to the sender's credit card account in the appropriate amount. (2) Copies of documentation. Recipient-requested changes. and have been assigned OMB No . However, if the provider determines that no error or a different error occurred, the provider must provide a written explanation of its findings under 1005.33(d)(1). 10. 1. The requirements take effect on February 7, 2013. Arrange to transfer an eligible tax credit to an unrelated party in exchange for only cash. ii. The comment for 1005.34 is part of 12 CFR Part 1005 (Regulation E). (3) Unauthorized remittance transfers. . If the sender requests to have the transfer amount applied to a new remittance transfer pursuant to 1005.33(c)(2)(iii) and provides the corrected or additional information, and the remittance transfer provider agrees to a resend remedy, the remittance transfer provider may charge the sender another transfer fee of US$10 to send the remittance transfer again with the corrected or additional information necessary to complete the transfer. In addition, nothing in this section prevents an account-holding institution or creditor from reversing amounts it has previously credited to correct an error if a sender receives more than one credit to correct the same error. August 2, 2021, Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties, This bulletin provides the Office of the Comptroller of the Currency's (OCC) supplemental examination procedures on remittance transfers. A "normal course of business safe harbor" amendment increased the safe harbor threshold under Regulation E. The regulation defines "remittance transfer provider" in part to mean any person who initiates remittance transfers for a consumer in the normal course of business.6 As originally adopted, the normal course of business safe harbor threshold stated that a person is deemed not to be providing remittance transfers for a consumer in the normal course of business if the person made 100 or fewer remittance transfers in the previous calendar year and makes 100 or fewer remittance transfers in the current calendar year.7 This amendment increased the normal course of business safe harbor threshold from 100 or fewer transfers to 500 or fewer transfers annually. The following are examples of reasonable efforts: i. 1. Section 1005.33(a)(1)(iv) generally covers disputes about the failure to make funds available in connection with a remittance transfer to a designated recipient by the disclosed date of availability. either (1) the bank made 500 or fewer remittance transfers to the designated recipient's institution in the prior calendar year, or (2) a statute or regulation prohibits the bank from being able to determine the exact covered third-party fees. Failure to make funds available by disclosed date of availability - fraud and other screening procedures. (2) Request for documentation or clarification. This process will be necessary for each IP address you wish to access the site from, requests are valid for approximately one quarter (three months) after which the process may need to be repeated. Reg. Regulation E specifies the information that must be disclosed to consumers who send remittance transfers. The Electronic Fund Transfer Act (Regulation E) establishes certain protections for consumers sending international money transfers, or remittance transfers. 1005.34 Procedures for cancellation and refund of remittance transfers. 11. Section 1005.33(a)(1)(i) covers circumstances in which a sender pays an amount that differs from the total amount of the transaction, including fees imposed in connection with the transfer, stated in the receipt or combined disclosure provided under 1005.31(b)(2) or (3). The remittance transfer provider provides the sender a receipt stating an amount of currency that will be received by the designated recipient, which does not reflect the additional foreign taxes that will be collected in Colombia on the transfer but does include the statement required by 1005.31(b)(1)(viii). A remittance transfer provider shall develop and maintain written policies and procedures that are designed to ensure compliance with the error resolution requirements applicable to remittance transfers under this section. 12 CFR 1005.30 - Remittance transfer definitions. | Electronic Code Electronic Fund Transfers (Regulation E); Amendments (1) Timing; contents. A designated recipient may receive an amount of currency that differs from the amount of currency disclosed, for example, if an exchange rate other than the disclosed rate is applied to the remittance transfer, or if the provider fails to account for fees or taxes that may be imposed by the provider or a third party before the transfer is picked up by the designated recipient or deposited into the recipient's account in the foreign country. The supplemental examination procedures address the following provisions for implementation of the Regulation E requirement to disclose the exact cost of remittance transfers, The EFTA and its implementing regulation, Regulation E, establish certain protections for consumers sending international money transfers, or remittance transfers. Regulations and official interpretations Browse the Remittance Rule (Subpart B of Regulation E, 12 CFR 1005) on: Interactive Bureau Regulations | eCFR PDF Remittance Transfers Small Entity Compliance Guide For example, assume that a sender initially asserts an error with a remittance transfer provider with respect to a remittance transfer alleging that US$130 was debited from his checking account, but the sender only requested a remittance transfer for US$100, plus a US$10 transfer fee. A remittance transfer provider is not required to comply with the requirements of this section for any notice of error from a sender that is received by the provider more than 180 days from the disclosed date of availability of the remittance transfer to which the notice of error applies or, if applicable, more than 60 days after a provider sent documentation, additional information, or clarification requested by the sender, provided such date is later than 180 days after the disclosed date of availability. 18975 (Apr. Nothing in this section limits a sender's rights to assert claims and defenses against a card issuer concerning property or services purchased with a credit card under Regulation Z, 12 CFR 1026.12(c)(1), as applicable. See interpretation of 33(d) Procedures if Remittance Transfer Provider Determines No Error or Different Error Occurred in Supplement I. The exception in 1005.33(a)(1)(iv)(D) applies where a sender gives the remittance transfer provider an incorrect account number or recipient institution identifier and all five conditions in 1005.33(h) are satisfied. Reg. The provider may deduct from the amount refunded or applied towards a new transfer any fees actually imposed on or, to the extent not prohibited by law, taxes actually collected on the remittance transfer as part of the first unsuccessful remittance transfer attempt except that the provider shall not deduct its own fee. in the prior calendar year, the bank made 1,000 or fewer remittance transfers to the particular country for which the designated recipients received funds in the country's local currency. 1 The Federal Financial Institutions Examination Council consists of the following six voting members: a member of the Board of Governors of the Federal Reserve System; the Chairman of the Federal Deposit Insurance Corporation; the Director of the Consumer Financial Protection Bureau; the Comptroller of the Currency; the Chairman of the National Credit Union Administration; and the Chairman of the State Liaison Committee. 5 For more information, refer to 85 Fed. 1. The remittance transfer provider has no further error resolution responsibilities if the sender voluntarily withdraws the notice alleging an error. The remittance transfer provider provides the sender a receipt that discloses an estimated exchange rate, other taxes, and amount of currency that will be received due to the law in the foreign country requiring that the exchange rate be set by the foreign country's central bank. EFTA, as implemented by the Remittance Rule, generally requires remittance transfer providers to provide disclosures required by subpart B of Regulation E to the sender in writing. Regulation E Remittance Rule Amendment: Safe Harbor Threshold - FORVIS The explanation shall also address the specific complaint of the sender. Failure to make funds available by disclosed date of availability - extraordinary circumstances. Specifically, comment 32(b)(4)-3 discusses the transition period if a bank in the prior calendar year did not exceed the 1,000-transfer threshold to a particular country pursuant to 12 CFR 1005.32(b)(4)(i)(C), but does exceed the 1,000-transfer threshold in the current calendar year. If the remittance transfer provider subsequently provides a credit of the same amount to the sender for the same error, the account-holding institution may reverse the amounts it had previously credited to the consumer's account, even after the 45-day error resolution period under 1005.11. Determining amount of refund. (iv) In the case of a request under paragraph (a)(1)(v) of this section, providing the requested documentation, information, or clarification. ii. 3 The agency responsible for supervising and enforcing compliance with Regulation E depends on the person subject to the EFTA (e.g., for financial institutions, jurisdiction depends on the institution's size and charter). Complete a transfer election statement with the transferee (as described in Q6 below). However, if before the refund is processed, the sender receives notice pursuant to 1005.33(c)(1) or (d)(1) that an error occurred because the sender provided incorrect or insufficient information and then requests that the provider send the remittance transfer again, and the provider agrees to that request, 1005.33(c)(2)(iii) requires that the request be treated as a new remittance transfer and the provider must provide new disclosures in accordance with 1005.31 and all other applicable provisions of subpart B. (B) Refunding to the sender any fees imposed and, to the extent not prohibited by law, taxes collected on the remittance transfer; (iii) In the case of an error under paragraph (a)(1)(iv) of this section that occurred because the sender provided incorrect or insufficient information in connection with the remittance transfer, the remittance transfer provider shall provide the remedies required by paragraphs (c)(2)(ii)(A)(1) and (c)(2)(ii)(B) of this section within three business days of providing the report required by paragraph (c)(1) or (d)(1) of this section except that the provider may agree to the sender's request, upon receiving the results of the error investigation, that the funds be applied towards a new remittance transfer, rather than be refunded, if the provider has not yet processed a refund. Provide the transferee (i.e., buyer) with the registration number and all other information necessary to claim the transferred eligible credit. eCFR :: 12 CFR Part 1005 -- Electronic Fund Transfers (Regulation E) In addition, this bulletin summarizes the Consumer Financial Protection Bureau's (CFPB) Regulation E amendments regarding remittance transfers that became effective in July 2020. Grovetta N. Gardineer The "exchange rate and third-party fee estimate" exceptions were permanently adopted to address compliance challenges that banks may face in certain circumstances upon the July 21, 2020, expiration of a temporary statutory exception from providing the exact costs of remittance transfers. Because this fee is a non-covered third-party fee that the provider is not required to disclose under 1005.31(b)(1)(vi), no error has occurred if the provider provided the disclosure required by 1005.31(b)(1)(viii). 1005.18 Requirements for financial institutions offering prepaid accounts. On September 18, 2014, the Consumer Financial Protection Bureau published amendments to Regulation E revising remittance transfer requirements. Remittance Transfers Under the Electronic Fund Transfer Act (Regulation E) Record retention requirements. In order for the remittance transfer rule to apply, your bank must be a remittance transfer provider for consumers and make more than 100 consumer remittance transfers per year.