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CFPB

RIN: 3170-AA33

Publication ID: Spring 2013

Title: Disclosures For Remittance Transactions (Regulation E)
Abstract: The CFPB published in the Federal Register on February 7, 2012, a final rule to implement section 1073 of the Dodd- Frank Wall Street Reform and Consumer Protection Act, which amended the Electronic Fund Transfer Act (EFTA) to create a comprehensive new Federal consumer protection regime for remittance transfers by U.S. consumers to individuals and businesses in foreign countries. Consistent with the statute, the final rule requires remittance transfer providers to provide certain disclosures, cancellation rights, and error resolution procedures. In August 2012, the CFPB published a final rule providing additional guidance regarding what companies are not subject to the rule because they do not provide remittance transfers in the "normal course of business" and modifying certain requirements as applied to remittance transfers scheduled several days in advance. The CFPB published a proposal in the Federal Register on December 31,2012 in which it proposed to: (1) provide additional flexibility regarding the disclosure of foreign taxes, as well as fees imposed by a designated recipient's institution for receiving a remittance transfer in an account; (2) limit a remittance transfer provider's obligation to disclose foreign taxes to those imposed by a country's central government; and, (3) revise the error resolution provisions that apply when a remittance transfer is not delivered to a designated recipient because the sender provided incorrect or insufficient information, and, in particular, when a sender provides an incorrect account number and that incorrect account number results in the funds being deposited in the wrong account The Bureau also proposed a brief extension of the effective date of the rule until 90 days after the Bureau finalizes the proposal. On January 29, 2013,the Bureau published in the Federal Register a final rule that temporarily delayed the February 7, 2013 effective date of the rule until it finalizes the December 31, 2012 proposal. On April 30, 2013, the CFPB issued a rule that changed the previously-issued final rules in three respects. First, the rule makes optional, in certain circumstances, the requirement to disclose fees imposed by a designated recipient's institution. Second and relatedly, the rule also makes optional the requirement to disclose taxes collected by a person other than the remittance transfer provider. In place of these two former requirements, the rule requires disclaimers to be added to the rule's disclosures indicating that the recipient may receive less than the disclosed total due to the fees and taxes for which disclosure is now optional. Finally, the rule revises the error resolution provisions that apply when a remittance transfer is not delivered to a designated recipient because the sender provided incorrect or insufficient information, and, in particular, when a sender provides an incorrect account number or recipient institution identifier that results in the transferred funds being deposited in the wrong account. The rule also established an effective date of October 28, 2013.
Agency: Consumer Financial Protection Bureau(CFPB)	Priority: Substantive, Nonsignificant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Final Rule Stage
Major: No	Unfunded Mandates: No
CFR Citation: 12 CFR 1005
Legal Authority: 12 USC 5512 12 USC 5581 12 USC 5601 15 USC 1693b

Legal Deadline: None

Timetable:

Action	Date	FR Cite
NPRM	02/07/2012	77 FR 6310
NPRM Comment Period End	04/09/2012
Final Rule	08/20/2012	77 FR 50244
Supplemental NPRM	12/31/2012	77 FR 77187
Final Rule (Temporary Delay of Effective Date)	01/29/2013	78 FR 6025
Supplemental NPRM Comment Period End	01/30/2013
Supplemental Final Rule	07/00/2013

Regulatory Flexibility Analysis Required: No	Government Levels Affected: None
Federalism: No
Included in the Regulatory Plan: No
RIN Data Printed in the FR: No
Related RINs: Related to 7100-AD68
Agency Contact: Eric Goldberg Office of Regulations Consumer Financial Protection Bureau Phone:202 435-7700