1005.17. 1. 1005.9 Receipts at electronic terminals; periodic statements. Correction without investigation. Except as provided in 1005.36(c), a remittance transfer provider shall comply with the requirements of this section with respect to any oral or written request to cancel a remittance transfer from the sender that is received by the provider no later than 30 minutes after the sender makes payment in connection with the remittance transfer if: See interpretation of 33(c) Time Limits and Extent of Investigation in Supplement I. 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). See interpretation of 33(f) Relation to Other Laws in Supplement I. The Bureau of Consumer Financial Protection's (Bureau) remittance rule in Regulation E (Remittance Rule or Rule) implements these protections. Incorrect amount of currency received - examples. Requirements for overdraft services. File a tax return. Incorrect or insufficient information provided for transfer. If an alleged error involves an incorrect electronic fund transfer from a sender's account in connection with a remittance transfer, and the sender provides a notice of error to the account-holding institution, the account-holding institution shall comply with the requirements of 1005.11 governing error resolution rather than the requirements of this section, provided that the account-holding institution is not also the remittance transfer provider. The Bureau has subsequently . Consumer notice of error resolution rights. the bank cannot determine the exact covered third-party fees for the remittance transfer at the time it is required to provide applicable disclosures. PDF Remittance Transfers Small Entity Compliance Guide (2) Remedies. When a notice of error is based on documentation, additional information, or clarification that the sender previously requested under paragraph (a)(1)(v) of this section, the sender's notice of error is timely if received by the remittance transfer provider the later of 180 days after the disclosed date of availability of the remittance transfer or 60 days after the provider sent the documentation, information, or clarification that had been requested. 5 For more information, refer to 85 Fed. 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). 6 For more information, refer to 12 CFR 1005.30(f)(1). Complete a transfer election statement with the transferee (as described in Q6 below). 1005.15 Electronic fund transfer of government benefits. 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. 34870. Content of error notice. Change from disclosure made in reliance on sender information. (5) The provider promptly used reasonable efforts to recover the amount that was to be received by the designated recipient. (C) The difference results from the application of non-covered third-party fees or taxes collected on the remittance transfer by a person other than the provider and the provider provided the disclosure required by 1005.31(b)(1)(viii). Regulation E provides comprehensive consumer protections for consumers using electronic fund transfer and remittance transfer systems. 10. Examples of extraordinary circumstances outside the remittance transfer provider's control that could not have been reasonably anticipated under 1005.33(a)(1)(iv)(A) include circumstances such as war or civil unrest, natural disaster, garnishment or attachment of funds after the transfer is sent, and government actions or restrictions that could not have been reasonably anticipated by the remittance transfer provider, such as the imposition of foreign currency controls. The remittance transfer provider promptly uses a messaging service through a funds transfer system to contact institution that received the transfer, either directly or indirectly through any correspondent(s) or other intermediaries or service providers used for the particular transfer, to request that the amount that was to be received by the designated recipient be returned, in accordance with the messaging service's rules and protocol, and if required by law or contract, by requesting that the recipient institution obtain a debit authorization from the holder of the incorrectly credited account. 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. Once the provider determines that an error occurred because the sender provided incorrect or insufficient information, the provider must provide the report required by 1005.33(c)(1) or (d)(1) and inform the sender, pursuant to 1005.33(c)(1) or (d)(1), that it will refund US$95 to the sender within three business days, unless the sender chooses to apply the US$95 towards a new remittance transfer and the provider agrees. The insured institution would have a reasonable amount of time after December 1, 2021, to begin providing exact exchange rates in disclosures (assuming it cannot rely on another exception in 12 CFR 1005.32 to estimate the exchange rate). It can include transfers from retail "money transmitters" as well as banks and credit unions that transfer funds through wire transfers,2 automated clearing house (ACH) transactions,3 or other methods. 1005.6 Liability of consumer for unauthorized transfers. Similarly, no error occurs where, after disclosing a date of availability to the sender, a remittance transfer provider receives specific law enforcement information indicating that the characteristics of a remittance transfer match a pattern of fraudulent activity, and as a result, the provider deems it necessary to delay delivery of the funds to allow for further investigation. 1693 (opens new window) et seq., protects individual consumers engaging in electronic fund transfers (EFTs) and remittance transfers, including: Transfers through automated teller machines (ATMs); Point-of-sale (POS) terminals; Automated clearinghouse (ACH) systems; Effective July 21, 2020, the Consumer Financial Protection Bureau ("CFPB") is amending Regulation E pertaining to certain protections for consumers sending U.S. outbound international money transfers or remittance transfers ("Remittance Rule").The following highlights the amended provisions. Receipts and Periodic Statements (12 CFR 1005.9, 1005.15, 1005.18) 7 For more information, refer to 12 CFR 1005.30(f)(2)(i). Also, transactions of $15 or less are not to be included in the total. Electronic Fund Transfers (Regulation E); Amendments Holder in due course. If the remittance transfer provider determines during its investigation that an error occurred as described by the sender, the remittance provider may inform the sender of its findings either orally or in writing. Person asserting or discovering error. Examples include cash-to-cash transfers, cash-to-account transfers, international wire transfers, international automated clearing house (ACH) transfers, and certain prepaid card transactions. 1. exceptions regarding exchange rates and third-party fees. Electronic Fund Transfer Act: Supplemental OCC Examination Procedures Section 1005.33(h)(5) requires a remittance transfer provider to use reasonable efforts to recover the amount that was to be received by the designated recipient. Interest in Central Bank Digital Currencies Picks Up in Latin - IMF A remittance transfer provider shall comply with the requirements of this section with respect to any oral or written notice of error from a sender that: (i) Is received by the remittance transfer provider no later than 180 days after the disclosed date of availability of the remittance transfer; (A) The sender's name and telephone number or address; (B) The recipient's name, and if known, the telephone number or address of the recipient; and, (C) The remittance transfer to which the notice of error applies; and. 81020) (December 27, 2011). The provider may also request that the sender indicate the preferred remedy at the time the sender provides notice of the error although if provider does so, it should indicate that the if the sender chooses a resend at the time, the remedy may be unavailable if the error occurred because the sender provided incorrect or insufficient information. The reasonable amount of time must not exceed the later of six months after exceeding the 1,000- or 500-transfer threshold in the current calendar year or January 1 of the next year.8 Comment 32(b)(5)-5 applies the same reasonable amount of time to the transition period for third-party fees. However, where a provider does not employ reasonably available means to verify a recipient institution identifier, 1005.33(h)(2) is not satisfied and the exception in 1005.33(a)(1)(iv)(D) will not apply. ii. 1005.19 Internet posting of prepaid account agreements. Section 1005.33(c)(2)(iii) permits the provider to deduct from the amount refunded, or applied towards a new transfer, any fees or taxes actually deducted from the transfer amount by a person other than the provider as part of the first unsuccessful remittance transfer attempt or that were deducted in the course of returning the transfer amount to the provider following a failed delivery. The remedy in 1005.33(c)(2)(iii) applies if a remittance transfer provider's failure to make funds in connection with a remittance transfer available to a designated recipient by the disclosed date of availability occurred because the sender provided incorrect or insufficient information in connection with the transfer, such as by erroneously identifying the designated recipient's address or by providing insufficient information such that the entity distributing the funds cannot identify the correct designated recipient. However, if the provider rounds the exchange rate used to calculate the amount received consistent with 1005.31(b)(1)(iv) and comment 31(b)(1)(iv)-2 for the disclosed rate, there is no error if the designated recipient receives an amount of currency that results from applying the exchange rate used, prior to any rounding of the exchange rate, to calculate fees, taxes, or the amount received rather than the disclosed rate. (1) Relation to Regulation E 1005.11 for incorrect EFTs from a sender's account. Unless the sender provided incorrect or insufficient information and 1005.33(c)(2)(iii) applies, the remittance transfer provider may set a default remedy that the provider will provide if the sender does not designate a remedy within a reasonable time after the sender receives the report provided under 1005.33(c)(1). However, if the sender does not indicate the desired remedy at the time of providing notice of error, the remittance transfer provider must notify the sender of any available remedies in the report provided under 1005.33(c)(1) or (d)(1) if the provider determines an error occurred. i. (1) General definition. For example, suppose a sender requests U.S. dollars to be deposited into an account of the designated recipient and represents that the account is U.S. dollar-denominated. Incorrect amount of currency received - coverage. 12 CFR 1005.34 - Procedures for cancellation and refund of remittance Whether a provider acts promptly to use reasonable efforts depends on the facts and circumstances. Concurrent error obligations. For more information, refer to OCC Bulletin 2020-84, "Truth in Lending Act: Revised Interagency Examination Procedures.". The exception under 1005.33(a)(2)(iii) is available only if the change is made solely because the designated recipient requested the change. (iii) Indicates why the sender believes an error exists and includes to the extent possible the type, date, and amount of the error, except for requests for documentation, additional information, or clarification described in paragraph (a)(1)(v) of this section. The sender must do so, however, within the original 180-day period from the disclosed date of availability or, if applicable, the 60-day period for a notice of error asserted pursuant to 1005.33(b)(2). The amendments became effective on July 21, 2020.5. (D) The sender having provided the remittance transfer provider an incorrect account number or recipient institution identifier for the designated recipient's account or institution, provided that the remittance transfer provider meets the conditions set forth in paragraph (h) of this section; (v) The sender's request for documentation required by 1005.31 or for additional information or clarification concerning a remittance transfer, including a request a sender makes to determine whether an error exists under paragraphs (a)(1)(i) through (iv) of this section. Reg. A remittance transfer provider shall investigate promptly and determine whether an error occurred within 90 days of receiving a notice of error. iii. (1) Explanation of results of investigation. Reg. 3. These amendments became effective on November 17, 2014. A "remittance transfer" means the electronic transfer of funds requested by a sender to a designated recipient that is sent by a remittance transfer provider. IRS releases guidance on elective payments and transfers of certain The Bureau's remittance rule in Regulation E implements these protections. 5311 et seq., Office of Foreign Assets Control requirements, or similar laws or requirements; (C) The remittance transfer being made with fraudulent intent by the sender or any person acting in concert with the sender; or. rule to April 1, 2018. If an error occurs because the sender provides incorrect or insufficient information that results in non-delivery of the remittance transfer by the date of availability stated in the disclosure provided to the sender for the remittance transfer under 1005.31(b)(2) or (3), the provider is required to refund, or reapply if requested and the provider agrees, $105 unless the intermediary institution refunds to the provider the US$5 fee. For purposes of this section, the term error means: (i) An incorrect amount paid by a sender in connection with a remittance transfer unless the disclosure stated an estimate of the amount paid by a sender in accordance with 1005.32(b)(2) and the difference results from application of the actual exchange rate, fees, and taxes, rather than any estimated amount; (ii) A computational or bookkeeping error made by the remittance transfer provider relating to a remittance transfer; (iii) The failure to make available to a designated recipient the amount of currency disclosed pursuant to 1005.31(b)(1)(vii) and stated in the disclosure provided to the sender under 1005.31(b)(2) or (3) for the remittance transfer, unless: (A) The disclosure stated an estimate of the amount to be received in accordance with 1005.32(a), or (b)(1), (2), (4), or (5) and the difference results from application of the actual exchange rate, fees, and taxes, rather than any estimated amounts; or, (B) The failure resulted from extraordinary circumstances outside the remittance transfer provider's control that could not have been reasonably anticipated; or. (a) Sender right of cancellation and refund. "Remittance transfer provider" or "provider" means any person that provides remittance transfers for a consumer in the normal course of its business, regardless of whether the consumer holds an account with such person . An official website of the United States government, OCC Bulletin2021-33 For a refund provided under 1005.33(c)(2)(i)(A), (c)(2)(ii)(A)(1), (c)(2)(ii)(B), or (c)(2)(iii), a remittance transfer provider may generally, at its discretion, issue a refund either in cash or in the same form of payment that was initially provided by the sender for the remittance transfer. If the designated recipient's account is actually denominated in local currency and the recipient account-holding institution must convert the remittance transfer into local currency in order to deposit the funds and complete the transfer, the change in currency does not constitute an error pursuant to 1005.33(a)(2)(iv). 3. 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. Elective Pay and Transferability Frequently Asked Questions Senior Deputy Comptroller for Bank Supervision Policy. XXXX February 2019 EFTA 3 . 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. (2) Request for documentation or clarification. Section 1005.33(a)(1)(iii) also covers circumstances in which the remittance transfer provider transmits an amount that differs from the amount requested by the sender. The explanation shall also address the specific complaint of the sender. Correction of an error if funds not available by disclosed date. Electronic transfer of funds requested by a sender to a designated recipient that is sent by a remittance transfer provider Generally applies whether or not sender holds an account and whether or not a transfer is an electronic fund transfer Sender In addition and for purposes of this exception, the term designated recipient's account in 1005.33(a)(1)(iv)(D) refers to an asset account, regardless of whether it is a consumer asset account, established for any purpose and held by a bank, savings association, credit union, or equivalent institution. 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. The fraudulent pick-up of a remittance transfer in a foreign country by a person other than the designated recipient; iv. Safe Harbor Threshold Increase 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. "remittance transfer" is an electronic transfer of money from a consumer in the United States to a person or business in a foreign country. Regulatory Alert: CFPB's New Remittance Transfers Rule For example, if a sender asserts an error under 1005.11 with a remittance transfer provider that holds the sender's account, and the error is not also an error under 1005.33 (such as the omission of an EFT on a periodic statement), then the error-resolution provisions of 1005.11 exclusively apply to the error. 1005.18 Requirements for financial institutions offering prepaid accounts. (2) Copies of documentation. 3. Regulation E specifies the information that must be disclosed to consumers who send remittance transfers. (2) Normal course of business - (i) Safe harbor. Federal Register :: Electronic Fund Transfers(Regulation E) A consumer requests to send US$250 to a relative in India to a U.S. dollar-denominated account held by the relative at an Indian bank. 11. Regulation E specifies the information that must be disclosed to consumers who send remittance transfers. The electronic transmittal of money from U.S. consumers to recipients in foreign countries is called a remittance transfer. Section 1005.31 requires a remittance transfer provider to include an abbreviated notice of the consumer's error resolution rights on the receipt or combined notice provided under 1005.31(b)(2) or (3). When the relative picks up the remittance transfer, the relative receives less currency than the estimated amount disclosed to the sender on the receipt due to application of the actual exchange rate, fees, and taxes, rather than any estimated amounts. The following are examples of errors for failure to make funds available by the disclosed date of availability (assuming that none of the exceptions in 1005.33(a)(1)(iv)(A), (B), or (C) apply). A notice of error provided by a sender to an agent of the remittance transfer provider is deemed to be received by the provider under 1005.33(b)(1)(i) when received by the agent. Remittance Transfers under the Electronic Fund Transfer Act (Regulation Procedure for sending a new remittance transfer after a sender provides incorrect or insufficient information. 18975 (Apr. iv. These regulations became effective October 28, 2013. CFPB Updates Exam Procedures for Remittance Transfers If you want to request a wider IP range, first request access for your current IP, and then use the "Site Feedback" button found in the lower left-hand side to make the request. For example, when the amount that was disclosed pursuant to 1005.31(b)(1)(vii) was received by the designated recipient before the provider must determine the appropriate remedy for an error under 1005.33(a)(1)(iv), no additional amounts are required to resolve the error after the remittance transfer provider refunds the appropriate fees and taxes paid by the sender pursuant to 1005.33(c)(2)(ii)(B) or (c)(2)(iii), as applicable. The remittance transfer protections provided by Regulation E apply to entiti es that offer remittances as part of their "normal course of business." Under Regulation E, entities that provide 500 or fewer remitta nce transfers in the relevant time frame fall outside this definition. If you send money to foreign countries as a member service, you may have to comply with the new remittance transfers provisions under Regulation E (the Electronic Fund Transfer Act) issued by the Consumer Financial Protection Bureau (CFPB). A remittance transfer provider may request, or a sender may provide, the sender's or designated recipient's email address, as applicable, instead of a physical address, on a notice of error. . 1. Such amount must be made available to the designated recipient without additional cost to the sender or to the designated recipient; and. Comments Close: the remittance transfer is initiated from the sender's account to a recipient's account within the same bank. (3) Unauthorized remittance transfers. Same facts as in ii., except that the receipt provided by the remittance transfer provider does not reflect additional fees that are imposed by the receiving agent in Colombia on the transfer. If an alleged error involves an unauthorized use of a credit account for payment in connection with a remittance transfer, the provisions of Regulation Z, 12 CFR 1026.12(b), if applicable, and 1026.13, apply with respect to the creditor. (h) Incorrect account number or recipient institution identifier provided by the sender. On September 18, 2014, the Consumer Financial Protection Bureau published amendments to Regulation E revising remittance transfer requirements. 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. August 10, 2020. 1005.17 Requirements for overdraft services. The requirements take effect on February 7, 2013. For purposes of the exception in 1005.33(a)(1)(iv)(D), the terms account number and recipient institution identifier refer to alphanumerical account or institution identifiers other than names or addresses, such as account numbers, routing numbers, Canadian transit numbers, International Bank Account Numbers (IBANs), Business Identifier Codes (BICs) and other similar account or institution identifiers used to route a transaction. May 11, 2020 Executive Summary of the May 2020 Amendments to the Remittance Transfer Rule1 On May 11, 2020, the Consumer Financial Protection Bureau (Bureau) issued a final rule (2020 Final Rule) amending the Remittance Transfer Rule. If the remittance transfer provider refunds US$20 to the sender to correct the error, and the sender subsequently asserts the same error with his account-holding institution, the account-holding institution has no error resolution responsibilities under Regulation E because the error has been fully corrected. With the issuance of this bulletin, the following have been rescinded: This bulletin applies to community banks with electronic fund and remittance transfers. A provider that permits a sender to designate a remedy within 10 days after the provider has sent the report provided under 1005.33(c)(1) or (d)(1) before imposing the default remedy is deemed to have provided the sender with a reasonable time to designate a remedy. The remittance transfer provider promptly calls or otherwise contacts the institution that received the transfer, either directly or indirectly through any correspondent(s) or other intermediaries or service providers used for the particular transfer, to request that the amount that was to be received by the designated recipient be returned, and if required by law or contract, by requesting that the recipient institution obtain a debit authorization from the holder of the incorrectly credited account. 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. These changes to the threshold appear in the definition of remittance transfer provider in 12 CFR 1005.30(f) and related commentary. Such error may be asserted by a sender regardless of the form or method of payment provided, including when a debit, credit, or prepaid card is used to fund the transfer and an excess amount is paid. A "remittance transfer" means the electronic transfer of funds requested by a sender to a designated recipient that is sent by a remittance transfer provider. 6. CBDCsif well designedcould lower remittances' costs and improve financial inclusion. 4. Upon the sender's request, the remittance transfer provider shall promptly provide copies of the documents on which the provider relied in making its error determination. Transfers also must be for more than $15. 1005.33 Procedures for resolving errors. | Consumer Financial Banks continue to be allowed to disclose the following estimates to consumers: the bank cannot determine the exact exchange rate for the remittance transfer at the time it is required to provide applicable disclosures. 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.
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