Dodd-Frank Act Remittance Rule for Consumer Remittances Originating from the United States to Foreign Countries

1. Regulation E:
Remittance Transfer Rule
Jonathan J. Wegner
jwegner@bairdholm.com

2. Scope of Rule
• The Remittance Transfer Rule (“RTR”) applies to remittance transfers
from U.S. consumers.
• “Remittance Transfer” means an electronic transfer of funds
requested by a sender to a designated recipient via a remittance
transfer provider.
• “Designated Recipient” includes foreign individuals and businesses.
• “Remittance Transfer Provider” is any person that provides remittance
transfers for a consumer in the normal course of business.
• “Normal course of business” depends on the facts and
circumstances, including the total number and frequency of
remittance transfers sent by the provider.
• “Safe Harbor” = Fewer than 100 in current and prior year.

3. Scope of Rule
• RTR applies to:
– Consumer-to-consumer or consumer-to-business transfers
– Includes wire transfers, ACH transactions and other
transfers involving combinations of cash and/or accounts.
• RTR does not apply to:
– Business-to-consumer transfers
– Business-to-business transfers
– Transfers of less than $15

4. Prepayment Disclosures
• Transfer Amount
• Transfer Fees
• Transfer Taxes
• Total Amount
– In the currency in which transfer is funded

5. Prepayment Disclosures
• Exchange Rate, rounded to between
two and four decimal places
• Transfer Amount using Exchange Rate
• Other Fees and Taxes
• Total to Recipient
– Amounts in recipient’s currency

6. Model Forms

7. Prepayment Disclosures
• Foreign language disclosure
requirement (sender language)
• Cancellation rights
• Clear and conspicuous
• Retainable and properly formatted
– Exceptions for oral/mobile disclosures
• Pre-authorized transfer dates

8. Receipts
• Date Available
• Recipient name, phone and/or
address
• Error resolution/cancellation statement
• RTP’s name, phone and website
• CFPB/Agency Statement

9. Model Receipt

10. Estimates
• Exception for Insured FIs
– Beyond Control
– Extended to July 21, 2020
• Country-specific Exceptions
– Laws/Method of Payment
– Safe Harbor List

11. Estimates
• Methodologies
– Exchange Rates
– Third-Party Fees
• Pre-authorized Transfers
• Delivery of Additional Receipt

12. Error Resolution
• Errors include:
– Incorrect amount paid
– Computational or bookkeeping error
– Failure to make the amount set forth in the
receipt available, except for:
• Estimates (exchange rate, fees, taxes)
• Extraordinary circumstances
• Non-covered Third-party Fees

13. Error Resolution
• Errors include:
– Delayed availability, except for:
• Extraordinary circumstances
• OFAC Screening
• Fraudulent Intent
• Incorrect Account Information
– Request for Required Disclosures

14. Error Resolution
• Notice of Error:
– Must be received within 180 days of
Availability Date
– Must identify:
• Sender, Recipient & Transfer
• Nature of Error

15. Error Resolution
• Investigation & Resolution:
– 90-day Investigatory Period
– Provide Results of Investigation
– Refunds
• Refund Transfer Amount or Make Funds
Available to Recipient
• Refund Fees
– Exception for incorrect/insufficient information

16. Error Resolution
• Compliance Program
• Record Retention
• Relation to Reg E, Reg Z

17. Cancellation Rights
• Full refund permitted if transfer
cancelled within 30 minutes of
payment.
• Preauthorized transfers may be
cancelled at least three business days
before the scheduled transfer date