This will reduce the burden on over 400 banks and almost 250 credit unions that send a relatively small number of remittancesless than .06 percent of all remittances. PDF 1700 G Street NW, Washington, DC 20552 Primarily used. Disclosures provided orally for transactions conducted orally and entirely by telephone under paragraph (a)(3) of this section or orally or via mobile application or text message for transactions conducted via mobile application or text message under paragraph (a)(5) of this section shall be made in the language primarily used by the sender with the remittance transfer provider to conduct the transaction. CompareRemit is one such platform that works with the commitment to serve the objective by allowing remitters to compare different money transfer service providers side by side on their portal for free. If the remittance transfer provider thereafter communicates with the sender in Vietnamese and the sender uses Vietnamese to convey the information required by 1005.33(b) to assert an error, then Vietnamese is the language primarily used by the sender with the remittance transfer provider to assert the error. (2) Receipt. Disclosures provided via mobile application or text message, to the extent permitted by paragraph (a)(5) of this section, generally need not comply with the proximity requirements of this paragraph, however information required or permitted by paragraph (b)(1)(viii) of this section must follow the information required by paragraph (b)(1)(vii) of this section. Mobile application and text message transactions. If the sender uses the French version of the Web site to conduct the remittance transfer, then French is the language primarily used by the sender with the remittance transfer provider to conduct the transaction. PDF Remittance transfer rule overview - Consumer Financial Protection Bureau The two main objectives of the CFPB are: To empower consumers by offering transparency whereby they can see the risks and costs upfront. If the designated recipient will receive funds in a currency other than the currency in which the remittance transfer is funded, a remittance transfer provider must disclose the exchange rate to be used by the provider for the remittance transfer. The Remittance Rule imposes requirements on entities that send international money transfers, or remittance transfers, on behalf of consumers. However, where a transfer (whether a one-time remittance transfer or the first in a series of preauthorized remittance transfers) is scheduled before the date of transfer and the provider does not intend to process payment until at or near the date of transfer, the provider may provide a confirmation of scheduling in lieu of the proof of payment required by 1005.31(b)(3)(i). For purposes of 1005.31(b)(1)(v), (vi), and (vii), if a provider does not have specific knowledge regarding the currency in which the funds will be received, the provider may rely on a sender's representation as to the currency in which funds will be received. 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. Browse Ask CFPB; Rules & Policy Back Rules & Policy Overview . Disclosures may contain commonly accepted or readily understandable abbreviations or symbols, such as USD to indicate currency in U.S. dollars or MXN to indicate currency in Mexican pesos. (2) Oral, mobile application, or text message disclosures. Section 1005.33 (g) (1) of the Remittance Transfer Rule requires remittance-transfer providers to develop and maintain written policies and procedures that are designed to ensure. If a sender initiating a remittance transfer receives a combined disclosure provided under 1005.31(b)(3) and then completes the transaction, the remittance transfer provider must provide the sender with proof of payment. For example, a provider may not round to two decimal places for some transactions exchanged into Euros and round to four decimal places for other transactions exchanged into Euros. 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. In such circumstances, a provider may conduct the transaction orally and entirely by telephone pursuant to 1005.31(a)(3) when the provider treats that initial communication as an inquiry and subsequently responds to the consumer's inquiry by calling the consumer on a telephone and orally gathering or confirming the information needed to identify and understand a request for a remittance transfer and otherwise conducts the transaction orally and entirely by telephone. Fees disclosed in the currency in which the funds will be received. For example, if the funds will be picked up by the designated recipient in Japanese yen, the transfer amount would be expressed in Japanese yen. the remittance transfer is sent from the sender's credit union account . (i) The disclosures described in paragraphs (b)(1)(i) through (viii) of this section; (ii) The date in the foreign country on which funds will be available to the designated recipient, using the term Date Available or a substantially similar term. In accordance with 1005.31(b)(2)(vii), the provider should disclose the date of transfer for that particular transaction (i.e., July 15) on the receipt provided when payment is made for the transfer pursuant to the timing requirements in 1005.36(a)(1)(i). CFPB's First Remittance Transfer Rule Enforcement Action The disclosed amount received must be reduced by the amount of any fee or tax - except for a non-covered third-party fee or tax collected on the remittance transfer by a person other than the provider - that is imposed on the remittance transfer that affects the amount received even if that amount is imposed or itemized separately from the transaction amount. If the sender primarily uses English with the remittance transfer provider to conduct the transaction or assert an error, the remittance transfer provider may provide a written or electronic disclosure solely in English. Among its requirements, the rule mandates that remittance transfer providers generally must disclose the exact exchange rate, the amount of . If the remittance transfer provider thereafter communicates with the sender in Spanish and the sender conveys the other information needed to complete the transaction, including the designated recipient's information and the amount and funding source of the transfer, in Spanish, then Spanish is the language primarily used by the sender with the remittance transfer provider to conduct the transaction. . Disclosures provided via mobile application or text message, to the extent permitted by paragraph (a)(5) of this section, generally need not comply with the grouping requirements of this paragraph, however information required or permitted by paragraph (b)(1)(viii) of this section must be grouped with information required by paragraph (b)(1)(vii) of this section. In this case, the provider would disclose the covered third-party fee to the sender expressed in Euros, calculated using the exchange rate disclosed under 1005.31(b)(1)(iv), prior to any rounding of the exchange rate. Disclosure of any non-covered third-party fees and any taxes collected by a person other than the provider pursuant to 1005.31(b)(1)(viii). ii. A statement that the provider makes money from foreign currency exchange. Section 1005.31(g)(1) does not limit the number of languages that may be used on a single document, but such disclosures must be clear and conspicuous pursuant to 1005.31(a)(1). For example, an exchange rate set by an intermediary institution and applied to the remittance transfer would be the exchange rate used for the remittance transfer and must be disclosed by the provider. 2. 1005.6 Liability of consumer for unauthorized transfers. Disclosures required by this subpart or permitted by paragraph (b)(1)(viii) of this section or 1005.33(h)(3) must be clear and conspicuous. If a sender does not know the currency in which funds will be received, the provider may assume that the currency in which funds will be received is the currency in which the remittance transfer is funded. Transfer amount. See interpretation of 31(e) Timing in Supplement I. 5. An indication that a disclosure is or is not a receipt or other indicia of proof of payment; vii. 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. A provider may only include this statement to the extent that such fees or taxes do or may apply to the transfer, using the language set forth in Model Forms A-30(a) through (c) of Appendix A to this part, as appropriate, or substantially similar language. 1005.34 Procedures for cancellation and refund of remittance transfers. ii. For example, a provider may disclose January 10 (may be available sooner).. For example, if no transfer taxes are imposed on a remittance transfer, a provider would only disclose applicable transfer fees. The proof of payment must be clear and conspicuous, provided in writing or electronically, and provided in a retainable form. A remittance transfer provider may provide the required pre-payment disclosures orally or via mobile application or text message if the transaction is conducted entirely by telephone via mobile application or text message, the remittance transfer provider complies with the requirements of 1005.31(g)(2), and the provider discloses orally or via mobile application or text message a statement about the rights of the sender regarding cancellation required by 1005.31(b)(2)(iv) pursuant to the timing requirements in 1005.31(e)(1). 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. B. Comment for 1026.34 - Consumer Financial Protection Bureau On August 7, the Consumer Financial Protection Bureau ("CFPB" or "Bureau") published certain updates ("August Updates") to the remittance transfer rules that it finalized and published. Any advertisement, solicitation, or marketing is considered to be made at the office in which a sender conducts a transaction or asserts an error if such advertisement, solicitation, or marketing is posted, provided, or made: at a physical office of a remittance transfer provider; on a Web site of a remittance transfer provider that may be used by senders to conduct remittance transfers or assert errors; during a telephone call with a remittance transfer provider that may be used by senders to conduct remittance transfers or assert errors; or via mobile application or text message by a remittance transfer provider if the mobile application or text message may be used by senders to conduct remittance transfers or assert errors. Disclosures provided via mobile application or text message, to the extent permitted by 1005.31(a)(5), need not be retainable. Substantially similar terms, language, and notices. Confirmation of scheduling. 7001 et seq.). ii. For purposes of subpart B, payment is made, for example, when a sender provides cash to the remittance transfer provider or when payment is authorized. The provider may use a number of methods to indicate which cancellation period applies to the transaction including, but not limited to, a statement to that effect, use of a checkbox, highlighting, circling, and the like. A remittance transfer provider may provide estimates of the amounts required by 1005.31(b), to the extent permitted by 1005.32. The CFPB's key findings include: The volume of remittance transfers by MSBs was increasing before the rule's effective date and continued to increase afterwards at the same or higher rate. Same facts as i. See interpretation of 31(c)(1) Grouping in Supplement I. Proof of payment. The sender requests that first transfer in the series be sent on July 15. 4. 1005.9 Receipts at electronic terminals; periodic statements. 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. 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. 1005.30 Remittance transfer definitions. When payment is made. For example the terms used to describe fees disclosed under 1005.31(b)(1)(ii) and (vi) may not both be described solely as Fees.. A remittance transfer provider must disclose to a sender, as applicable: 1. The Consumer Financial Protection Bureau (CFPB) and New York Attorney General Letitia James have announced that they are suing MoneyGram International, Inc. and MoneyGram Payment Systems, Inc.. Estimated disclosures must be described using the term Estimated or a substantially similar term in close proximity to the estimated term or terms. For example, if a sender in the United States sends funds from an account denominated in Euros to an account in France denominated in Euros, no exchange rate would need to be provided. The Financial Crimes Enforcement Network, a bureau of the Department of the Treasury, and the Board of Governors of the Federal Reserve System are issuing this Final Rule amending the regulatory definitions of "funds transfer" and "transmittal of funds" under the regulations implementing the Bank Secrecy Act ("BSA"). Remittance Transfer Rules Apply to Most Credit Unions CFPB's First Remittance Transfer Rule Enforcement Action The final rule applies to a remittance transfer that is: More than $15; Made by a consumer in the United States; and; Sent to a . For disclosures provided pursuant to 1005.31, the relevant office is the office in which the sender conducts the transaction. A provider need only disclose fees imposed or taxes collected on the remittance transfer by the provider in 1005.31(b)(1)(ii), as applicable. ii. (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 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. CFPB-2019-0058] RIN 3170-AA96 Remittance Transfers under the Electronic Fund Transfer Act (Regulation E) AGENCY: Bureau of Consumer Financial Protection. (3) Disclosures for oral telephone transactions. See interpretation of 31(a) General Form of Disclosures in Supplement I. ii. Examples illustrating when a foreign language is used to advertise, solicit, or market include: A. Exchange rate used. PDF Remittance transfer rule factsheet - Consumer Financial Protection Bureau Sections 1005.31(b)(1)(i) and (v) require two transfer amount disclosures. C. The specific foreign language terms used in the advertising soliciting, or marketing of remittance transfer service at that office. See interpretation of 31(b)(1) Pre-Payment Disclosures in Supplement I. The confirmation or other identification code; vi. For example, if a financial institution is solely regulated by a Federal agency, and not licensed or chartered by a State agency, then the institution need not disclose information about a State agency. 1693 (opens new window) et seq., protects individual consumers engaging in electronic fund transfers (EFTs) and remittance transfers, including: Telephone bill-payment plans where periodic or recurring transfers are contemplated; Remittance transfers. (2) Except as provided in 1005.36(a), a receipt required by paragraph (b)(2) of this section generally must be provided to the sender when payment is made for the remittance transfer. For example, if an agent of a remittance transfer provider is located in a grocery store, the grocery store is considered an office for purposes of 1005.31(g)(1). Agencies required to be disclosed. Retainable electronic disclosures. SUMMARY: 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). Rounding. See comment 31(a)(3)-2. AUG 31, 2020 Share & print WASHINGTON, D.C. Today the Consumer Financial Protection Bureau (Bureau) entered into settlements with Trans-Fast Remittance LLC and Sigue Corporation and its subsidiaries, SGS Corporation and GroupEx Corporation. 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. On the other hand, if one U.S. dollar exchanges for exactly 11.9 Mexican pesos, the provider may disclose that US$1 = 11.9 MXN in lieu of, for example, US$1 = 11.90 MXN. The exchange rate disclosed for the remittance transfer must be rounded consistently for each currency. The sender's name and contact information; iii. Disclosures provided via mobile application or text message, to the extent permitted by paragraph (a)(5) of this section, need not be retainable. CFPB to amend Remittance Transfer Rule - Buckley LLP 1026.32 Requirements for high-cost mortgages. For example, if the State agency that licenses the provider with respect to an online remittance transfer is determined by a sender's location, a provider could rely on the sender's statement regarding the State in which the sender is located and disclose the State agency that licenses the provider in that State. CFPB remittance rules 2/7/12: 77 FR 6194, general rule 7/10/2012: 77 FR 40459, technical correction 8/20/2012: 77 FR 50243, normal course of business safe harbor and transfers scheduled in advance 5/22/2013: 78 FR 30661, (issued 4/30/2013) revision of other fees, other taxes and sender error provisions CFPB's First Remittance Transfer Rule Enforcement Action 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. An office includes any physical location, telephone number, or Web site of a remittance transfer provider where a sender may conduct a remittance transfer or assert an error for a remittance transfer. 1. Section 1005.33 (g) (1) of the Remittance Transfer Rule requires remittance-transfer providers to develop and maintain written policies and procedures that are designed to ensure compliance with the error-resolution requirements under the rule. x. Electronic Fund Transfer Act (Regulation E) | NCUA The Consumer Financial Protection Bureau has issued a final rule covering remittances transfers which raises the reporting threshold for those institutions making relatively few annual remittances. 1. Date funds will be available. 1. 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. 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. For example, a sender may begin a remittance transfer at a remittance transfer provider's dedicated telephone in a retail store, and then provide payment in person to a store clerk to complete the transaction. Upon the sender's request, a remittance transfer provider must promptly provide to the sender a notice describing the sender's error resolution and cancellation rights, using language set forth in Model Form A-36 of Appendix A to this part or substantially similar language. 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). 2. 1. If the disclosure described in paragraph (b)(3)(i) of this section is provided in accordance with 1005.36(a)(1)(i) and payment is not processed by the remittance transfer provider at the time the remittance transfer is scheduled, a remittance transfer provider may provide confirmation that the transaction has been scheduled in lieu of the proof of payment otherwise required by paragraph (b)(3)(i) of this section. 1. Disclosures required by 1005.31(b) need only be provided to the extent applicable. D. Printed material in a foreign language on any exterior or interior sign at an office. Except as provided in 1005.36(a), a receipt required by 1005.31(b)(2) must be provided to the sender when payment is made for the remittance transfer. Similarly, if a sender funds a remittance transfer in U.S. dollars and requests that a remittance transfer be delivered to the recipient in U.S. dollars, a provider need not disclose an exchange rate. Telephone transfer from an account. (i) In general. 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. The Web site is offered in English and French. Remittance Transfer Rule: Model Forms | Consumer Financial Protection (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. For example, a provider could provide the grouped information as a horizontal, rather than a vertical, calculation. Consumer Financial Protection Bureau Settles with Remittance Transfer Taxes collected on the remittance transfer by the remittance transfer provider include taxes collected on the remittance transfer by a State or other governmental body. In this statement, a provider also may, but is not required, to disclose any applicable non-covered third-party fees or taxes collected by a person other than the provider. If a transaction is conducted entirely by telephone via mobile application or text message, a receipt required by 1005.31(b)(2) may be mailed or delivered to the sender pursuant to the timing requirements in 1005.31(e)(2). What is a remittance transfer provider? The Consumer Financial Protection Bureau has issued rules to protect consumers who send money electronically to foreign countries. 1005.4 General disclosure requirements; jointly offered services. 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. . 2. The CFPB has exclusive Regulation E rulemaking authority and supervisory jurisdiction for banks 2 with assets over $10 billion. Browse Ask CFPB; Rules & Policy Back Rules & Policy Overview . 1. As of Sept 2014, the CFPB Remittance rule, the companies must provide more protection to the consumers for international remittance. The Rule established the basic rights, liabilities, and responsibilities of consumers who use remittance transfer services and of financial institutions or other persons that offer these services. The dollar volume of remittance transfers by MSBs was also increasing both before and after the rule became effective. Section 1005.31(a)(3) applies to transactions conducted orally and entirely by telephone, such as transactions conducted orally on a landline or mobile telephone. On the receipt, the remittance transfer provider discloses an estimated exchange rate to the sender pursuant to 1005.32(b)(2). The information required by paragraph (b)(1) of this section may be disclosed orally or via mobile application or text message if: 1. If a sender electronically requests the provider to send a remittance transfer, the disclosures required by 1005.31(b)(2) may be provided to the sender in electronic form, subject to compliance with the consumer consent and other applicable provisions of the E-Sign Act. Making disclosures in a foreign language that are required by Federal or other applicable law. See interpretation of 31(g)(1) General in Supplement I, (i) Each of the foreign languages 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; or. Fees imposed on the remittance transfer by the provider required to be disclosed under 1005.31(b)(1)(ii) include only those fees that are charged to the sender and are specifically related to the remittance transfer. (iv) The provider discloses orally or via mobile application or text message, 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. Moved Permanently. The proof of payment for the transaction may be provided on the same piece of paper as the combined disclosure or on a separate piece of paper. The second receipt, which 1005.36(a)(1)(ii) requires to be provided within one business day after the date of the transfer or, for transfers from the sender's account held by the provider, on the next regularly scheduled periodic statement or within 30 days after payment is made if a periodic statement is not provided, is also required to include the date of transfer. 1. The information required by paragraph (b)(2)(iv) of this section generally must be disclosed in close proximity to the other information required by paragraph (b)(2) of this section. 7. 2. For example, an intermediary institution involved in sending an international wire transfer funded in U.S. dollars may impose a fee in U.S. dollars, but funds are ultimately deposited in the recipient's account in Euros. or have questions about the content, Information is grouped together for purposes of subpart B if multiple disclosures are in close proximity to one another and a sender can reasonably calculate the total amount of the transaction and the amount that will be received by the designated recipient. The information required by paragraphs (b)(1)(v), (vi), (vii), and (viii) of this section generally must be grouped together. The confirmation of scheduling must be clear and conspicuous, provided in writing or electronically, and provided in a retainable form. However, a remittance transfer provider may also disclose that funds may be available sooner or use a substantially similar term to inform senders that funds may be available to the designated recipient on a date earlier than the date disclosed.
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