A “remittance transfer” is defined broadly to include all electronic transfers of funds to designated recipients located in foreign countries that are initiated by a consumer in the United States utilizing a remittance transfer provider’s services. A “remittance transfer provider” is defined as any entity providing remittance transfers in the “normal course of business,” and does not depend upon whether the consumer holds an account with the remittance transfer provider. Remittance transfer providers include banks, thrifts, credit unions and money transmitters.
Starting October 28, 2013, federal law will provide new protections, including new rights to see more information about the transfer, resolve complaints or mistakes, and cancel transfers after they've been requested.
While the April 2013 Final Rule provides much needed relief for community banks, there are still a number of steps that policymakers can take to encourage remittance transfer growth among community banks:
On January 20, 2012, the Consumer Financial Protection Bureau (“CFPB”) issued a final rule that amended Regulation E, which implements the Electronic Fund Transfer Act. On December 31, 2012, the CFPB delayed the effective date of the final rule and re-proposed certain provisions. This action was prompted by concerns raised by ICBA and other financial institutions that the January 2012 rule, would have led community banks to either discontinue or drastically limit the availability of this service and thereby limit consumer access.
On April 30, 2013, the CFPB issued a final rule that revises several provisions of the remittance transfers rule that were problematic and unworkable for community banks. In the final rule, disclosures of foreign taxes and recipient bank fees, which were required under the prior rules, are optional. Additionally, banks are no longer liable for an uncollectable loss if the consumer provides an incorrect account number, routing number or international identifier.
Staff contacts: Cary Whaley
|09/02/2014||OCC Revises Booklet on Remittance Transfers||NewsWatch Today|
|05/30/2013||ICBA Summary of the Consumer Financial Protection Bureau’s Final Rules Regarding Remittance Transfers||Summary|
|05/01/2013||ICBA Supports Revisions to Remittance Rule||News Release|
|04/22/2013||Proposed Remittance Transfer Reporting||Industry Letter to Regulators|
|03/13/2013||Remittance Transfers||Policy Resolution|
|02/01/2013||Proposed Revisions to Regulation E, Remittance Transfer Rules||Letter to Regulators|
|10/17/2012||Request for Interim Final Rule to Correct Regulation E Requirements Related to Remittance Transfers||Letter to Regulators|
|10/17/2012||Joint Letter on the Implementation of Remittance Transfer Rules under Section 1073 of the Dodd- Frank Act||Joint Letter to Regulators|
|08/08/2012||ICBA Statement on New Requirements on Remittance Transfers||Press Release|
|08/07/2012||Consumer Financial Protection Bureau Final Regulation E (Electronic Fund Transfers) Remittance Transfers Safe Harbor and Preauthorized Transfers Rule||CFPB Rulemaking|
|07/22/2012||Regulation E, Electronic Fund Transfers||Letter to Regulators|
|04/09/2012||Industry Comments on Consumer Financial Protection Bureau Proposed Regulation E (Electronic Fund Transfers) Remittance Transfers Rule||Industry Letter to Regulators|
|04/09/2012||ICBA Comments on Consumer Financial Protection Bureau Proposed Regulation E (Electronic Fund Transfers) Remittance Transfers Rule||Comment Letter|
|01/20/2012||Consumer Financial Protection Bureau Final Regulation E (Electronic Fund Transfers) Remittance Transfers Rule and Proposed Safe Harbor and Preauthorized Transfers Rule||CFPB Rulemaking|
|07/22/2011||ICBA Comments on Federal Reserve Proposed Regulation E (Electronic Fund Transfers) Remittance Transfers Rule||Letter to Regulators|
|07/22/2011||Industry Comments on Federal Reserve Proposed Regulation E (Electronic Fund Transfers) Remittance Transfers Rule||Industry Letter to Regulators|
|05/12/2011||Federal Reserve Proposed Regulation E (Electronic Fund Transfers) Remittance Transfers Rule||Federal Reserve Rulemaking|
|ICBA Issues Statement on CFPB Update of Remittance Transfer Rule|