ALEXANDRIA, Va. (7/29/13)--The National Credit Union Administration has reminded credit unions of recent major changes to the remittance transfer rule by the Consumer Financial Protection Bureau (CFPB), and the upcoming Oct. 28 compliance date, in a new Regulatory Alert (13-RA-06).
Under the rule, remittance transfer providers are required to provide prepayment and receipt disclosures to the consumer sender that include the exchange rate, certain fees and taxes associated with a transfer, and the amount of money that will be received on the other end of the transfer. Remittance transfer providers will also be required to investigate disputes and correct errors.
"If your credit union sends money to foreign countries on behalf of members or non-members within your field of membership, you may have to comply with the amended remittance transfer provisions under Regulation E (the Electronic Fund Transfer Act)," the agency said in the alert.
Questions addressed in the NCUA regulatory alert include what types of remittances are covered under the rule, and which credit unions are exempt from the rule. Basic remittance regulation requirements are also addressed.
Credit unions that offer remittance transfer services to their members should take several actions to implement the regulatory requirements prior to the rule's effective date, the NCUA notes. Those actions include:
Becoming familiar with the new remittance transfer requirements;
Tracking the number of international wire transfers and international ACH transfers your credit union completes each year;
Modifying data processing systems, as necessary, to generate proper terms and content for the required disclosures; and
Developing and maintaining written policies and procedures to ensure compliance with the error resolution provisions.
The NCUA alert also links to the full text of the final rule, and CFPB compliance resources.
For the full alert, use the resource link.