The Text of the Dodd-Frank Act
from the
International Association of
Risk and Compliance Professionals (IARCP)
Dodd Frank Act Section 1073
SEC. 1073. REMITTANCE TRANSFERS.
(a)
TREATMENT OF REMITTANCE TRANSFERS.—The Electronic Fund
Transfer Act (15 U.S.C. 1693 et seq.) is amended— (1) in section
902(b) (15 U.S.C. 1693(b)), by inserting ‘‘and remittance’’ after
‘‘electronic fund’’;
(2) in section 904(c) (15 U.S.C.
1693b(c)), in the first sentence, by inserting ‘‘or remittance
transfers’’ after ‘‘electronic fund transfers’’;
(3) by
redesignating sections 919, 920, 921, and 922 as sections 920,
921, 922, and 923, respectively; and
(4) by inserting after
section 918 the following:
‘‘SEC. 919.
REMITTANCE TRANSFERS.
‘‘(a)
DISCLOSURES REQUIRED FOR REMITTANCE TRANSFERS.—
‘‘(1) IN
GENERAL.—Each remittance transfer provider shall make
disclosures as required under this section and in accordance with
rules prescribed by the Board. Disclosures required under this
section shall be in addition to any other disclosures applicable
under this title.
‘‘(2) DISCLOSURES.—Subject
to rules prescribed by the Board, a remittance transfer provider
shall provide, in writing and in a form that the sender may keep,
to each sender requesting a remittance transfer, as applicable to
the transaction—
‘‘(A) at the time at which the sender
requests a remittance transfer to be initiated, and prior to the
sender making any payment in connection with the remittance
transfer, a disclosure describing—
‘‘(i) the amount of
currency that will be received by the designated recipient, using
the values of the currency into which the funds will be exchanged;
‘‘(ii) the amount of transfer and any other fees charged by
the remittance transfer provider for the remittance transfer; and
‘‘(iii) any exchange rate to be used by the remittance
transfer provider for the remittance transfer, to the nearest
1/100th of a point; and
‘‘(B) at the time at which the
sender makes payment in connection with the remittance transfer—
‘‘(i) a receipt showing—
‘‘(I) the information
described in subparagraph (A);
‘‘(II) the promised date of
delivery to the designated recipient; and
‘‘(III) the name
and either the telephone number or the address of the designated
recipient, if either the telephone number or the address of the
designated recipient is provided by the sender;
and
‘‘(ii) a statement containing—
‘‘(I) information about the
rights of the sender under this section regarding the resolution
of errors; and ‘‘(II) appropriate contact information for—
‘‘(aa) the remittance transfer provider; and
‘‘(bb) the
State agency that regulates the remittance transfer provider and
the Board, including the toll-free telephone number established
under section 1013 of the Consumer Financial Protection Act of
2010.
‘‘(3) REQUIREMENTS RELATING TO
DISCLOSURES.—With respect to each disclosure required to be
provided under paragraph (2) a remittance transfer provider shall—
‘‘(A) provide an initial notice and receipt, as required by
subparagraphs (A) and (B) of paragraph (2), and an error
resolution statement, as required by subsection (d), that clearly
and conspicuously describe the information required to be
disclosed therein; and
‘‘(B) with respect to any
transaction that a sender conducts electronically, comply with the
Electronic Signatures in Global and National Commerce Act (15
U.S.C. 7001 et seq.).
‘‘(4) EXCEPTION
FOR DISCLOSURES OF AMOUNT RECEIVED.—
‘‘(A) IN GENERAL.—Subject
to the rules prescribed by the Board, and except as provided under
subparagraph (B), the disclosures required regarding the amount of
currency that will be received by the designated recipient shall
be deemed to be accurate, so long as the disclosures provide a
reasonably accurate estimate of the foreign currency to be
received.
This paragraph shall apply only to a remittance
transfer provider who is an insured depository institution, as
defined in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813), or an insured credit union, as defined in section
101 of the Federal Credit Union Act (12 U.S.C. 1752), and if—
‘‘(i) a remittance transfer is conducted through a demand
deposit, savings deposit, or other asset account that the sender
holds with such remittance transfer provider; and
‘‘(ii) at
the time at which the sender requests the transaction, the
remittance transfer provider is unable to know, for reasons beyond
its control, the amount of currency that will be made available to
the designated recipient.
‘‘(B)
DEADLINE.—The application of subparagraph (A) shall
terminate 5 years after the date of enactment of the Consumer
Financial Protection Act of 2010, unless sthe Board determines
that termination of such provision would negatively affect the
ability of remittance transfer providers described in subparagraph
(A) to send remittances to locations in foreign countries, in
which case, the Board may, by rule, extend the application of
subparagraph (A) to not longer than 10 years after the date of
enactment of the Consumer Financial Protection Act of 2010.
‘‘(5) EXEMPTION AUTHORITY.—The
Board may, by rule, permit a remittance transfer provider to
satisfy the requirements of—
‘‘(A) paragraph (2)(A) orally,
if the transaction is conducted entirely by telephone;
‘‘(B) paragraph (2)(B), in the case of a transaction conducted
entirely by telephone, by mailing the disclosures required under
such subparagraph to the sender, not later than 1 business day
after the date on which the transaction is conducted, or by
including such documents in the next periodic statement, if the
telephone transaction is conducted through a demand deposit,
savings deposit, or other asset account that the sender holds with
the remittance transfer provider;
‘‘(C) subparagraphs (A)
and (B) of paragraph (2) together in one written disclosure, but
only to the extent that the information provided in accordance
with paragraph (3)(A) is accurate at the time at which payment is
made in connection with the subject remittance transfer; and
‘‘(D) paragraph (2)(A), without compliance with section 101(c)
of the Electronic Signatures in Global Commerce Act, if a sender
initiates the transaction electronically and the information is
displayed electronically in a manner that the sender can keep.
‘‘(6) STOREFRONT AND INTERNET NOTICES.—
‘‘(A) IN GENERAL.—
‘‘(i) PROMINENT POSTING.—Subject
to subparagraph (B), the Board may prescribe rules to require a
remittance transfer provider to prominently post, and timely
update, a notice describing a model remittance transfer for one or
more amounts, as the Board may determine, which notice shall show
the amount of currency that will be received by the designated
recipient, using the values of the currency into which the funds
will be exchanged.
‘‘(ii) ONSITE
DISPLAYS.—The Board may require the notice prescribed under
this subparagraph to be displayed in every physical storefront
location owned or controlled by the remittance transfer provider.
‘‘(iii) INTERNET NOTICES.—Subject
to paragraph (3), the Board shall prescribe rules to require a
remittance transfer provider that provides remittance transfers
via the Internet to provide a notice, comparable to a storefront
notice described in this subparagraph, located on the home page or
landing page (with respect to such remittance transfer services)
owned or controlled by the remittance transfer provider.
‘‘(iv) RULEMAKING AUTHORITY.—In
prescribing rules under this subparagraph, the Board may impose
standards or requirements regarding the provision of the
storefront and Internet notices required under this subparagraph
and the provision of the disclosures required under paragraphs (2)
and (3).
‘‘(B) STUDY AND ANALYSIS.—Prior
to proposing rules under subparagraph (A), the Board shall
undertake appropriate studies and analyses, which shall be
consistent with section 904(a)(2), and may include an advanced
notice of proposed rulemaking, to determine whether a storefront
notice or Internet notice facilitates the ability of a consumer—
‘‘(i) to compare prices for remittance transfers; and ‘‘(ii)
to understand the types and amounts of any fees or costs imposed
on remittance transfers.
‘‘(b)
FOREIGN LANGUAGE DISCLOSURES.—The disclosures required
under this section shall be made in English and in each of the
foreign languages principally used by the remittance transfer
provider, or any of its agents, to advertise, solicit, or market,
either orally or in writing, at that office.
‘‘(c)
REGULATIONS REGARDING TRANSFERS TO CERTAIN
NATIONS.—If the Board determines that a recipient nation
does not legally allow, or the method by which transactions are
made in the recipient country do not allow, a remittance transfer
provider to know the amount of currency that will be received by
the designated recipient, the Board may prescribe rules (not later
than 18 months after the date of enactment of the Consumer
Financial Protection Act of 2010) addressing the issue, which
rules shall include standards for a remittance transfer provider
to provide—
‘‘(1) a receipt that is consistent with
subsections (a) and (b); and
‘‘(2) a reasonably accurate
estimate of the foreign currency to be received, based on the rate
provided to the sender by the remittance transfer provider at the
time at which the transaction was initiated by the sender.
‘‘(d) REMITTANCE TRANSFER ERRORS.—
‘‘(1) ERROR RESOLUTION.—
‘‘(A) IN GENERAL.—If a
remittance transfer provider receives oral or written notice from
the sender within 180 days of the promised date of delivery that
an error occurred with respect to a remittance transfer, including
the amount of currency designated in subsection (a)(3)(A) that was
to be sent to the designated recipient of the remittance transfer,
using the values of the currency into which the funds should have
been exchanged, but was not made available to the designated
recipient in the foreign country, the remittance transfer provider
shall resolve the error pursuant to this subsection and
investigate the reason for the error.
‘‘(B)
REMEDIES.—Not later than 90 days
after the date of receipt of a notice from the sender pursuant to
subparagraph (A), the remittance transfer provider shall, as
applicable to the error and as designated by the sender—
‘‘(i) refund to the sender the total amount of funds tendered by
the sender in connection with the remittance transfer which was
not properly transmitted;
‘‘(ii) make available to the
designated recipient, without additional cost to the designated
recipient or to the sender, the amount appropriate to resolve the
error;
‘‘(iii) provide such other remedy, as determined
appropriate by rule of the Board for the protection of senders; or
‘‘(iv) provide written notice to the sender that there was no
error with an explanation responding to the specific complaint of
the sender.
‘‘(2) RULES.—The
Board shall establish, by rule issued not later than 18 months
after the date of enactment of the Consumer Financial Protection
Act of 2010, clear and appropriate standards for remittance
transfer providers with respect to error resolution relating to
remittance transfers, to protect senders from such errors.
Standards prescribed under this paragraph shall include
appropriate standards regarding record keeping, as required,
including documentation—
‘‘(A) of the complaint of the
sender;
‘‘(B) that the sender provides the remittance
transfer provider with respect to the alleged error; and
‘‘(C) of the findings of the remittance transfer provider
regarding the investigation of the alleged error that the sender
brought to their attention.
‘‘(3)
CANCELLATION AND REFUND POLICY RULES.—Not later than 18
months after the date of enactment of the Consumer Financial
Protection Act of 2010, the Board shall issue final rules
regarding appropriate remittance transfer cancellation and refund
policies for consumers.
‘‘(e)
APPLICABILITY OF THIS TITLE.—
‘‘(1) IN GENERAL.—A
remittance transfer that is not an electronic fund transfer, as
defined in section 903, shall not be subject to any of the
provisions of sections 905 through 913.
A remittance
transfer that is an electronic fund transfer, as defined in
section 903, shall be subject to all provisions of this title,
except for section 908, that are otherwise applicable to
electronic fund transfers under this title.
‘‘(2)
RULE OF CONSTRUCTION.—Nothing in this
section shall be construed—
‘‘(A) to affect the application
to any transaction, to any remittance provider, or to any other
person of any of the provisions of subchapter II of chapter 53 of
title 31, United States Code, section 21 of the Federal Deposit
Insurance Act (12 U.S.C. 1829b), or chapter 2 of title I of Public
Law 91–508 (12 U.S.C. 1951–1959), or any regulations promulgated
thereunder; or
‘‘(B) to cause any fund transfer that would
not otherwise be treated as such under paragraph (1) to be treated
as an electronic fund transfer, or as otherwise subject to this
title, for the purposes of any of the provisions referred to in
subparagraph (A) or any regulations promulgated thereunder.
‘‘(f) ACTS OF AGENTS.—
‘‘(1) IN
GENERAL.—A remittance transfer provider shall be liable for
any violation of this section by any agent, authorized delegate,
or person affiliated with such provider, when such agent,
authorized delegate, or affiliate acts for that remittance
transfer provider.
‘‘(2) OBLIGATIONS
OF REMITTANCE TRANSFER PROVIDERS.— The Board shall
prescribe rules to implement appropriate standards or conditions
of, liability of a remittance transfer provider, including a
provider who acts through an agent or authorized delegate.
An agency charged with enforcing the requirements of this
section, or rules prescribed by the Board under this section, may
consider, in any action or other proceeding against a remittance
transfer provider, the extent to which the provider had
established and maintained policies or procedures for compliance,
including policies, procedures, or other appropriate oversight
measures designed to assure compliance by an agent or authorized
delegate acting for such provider.
‘‘(g)
DEFINITIONS.—As used in this section—
‘‘(1) the term ‘designated recipient’ means any person located
in a foreign country and identified by the sender as the
authorized recipient of a remittance transfer to be made by a
remittance transfer provider, except that a designated recipient
shall not be deemed to be a consumer for purposes of this Act;
‘‘(2) the term ‘remittance transfer’—
‘‘(A) means the
electronic (as defined in section 106(2) of the Electronic
Signatures in Global and National Commerce Act (15 U.S.C.
7006(2))) transfer of funds requested by a sender located in any
State to a designated recipient that is initiated by a remittance
transfer provider, whether or not the sender holds an account with
the remittance transfer provider or whether or not the remittance
transfer is also an electronic fund transfer, as defined in
section 903; and
‘‘(B) does not include a transfer
described in subparagraph (A) in an amount that is equal to or
lesser than the amount of a small-value transaction determined, by
rule, to be excluded from the requirements under section 906(a);
‘‘(3) the term ‘remittance transfer provider’ means any person
or financial institution that provides remittance transfers for a
consumer in the normal course of its business, whether or not the
consumer holds an account with such person or financial
institution; and
‘‘(4) the term ‘sender’ means a consumer
who requests a remittance provider to send a remittance transfer
for the consumer to a designated recipient.’’.
(b)
AUTOMATED CLEARINGHOUSE SYSTEM.—
(1)
EXPANSION OF SYSTEM.—The Board of Governors shall work with
the Federal reserve banks and the Department of the Treasury to
expand the use of the automated clearinghouse system and other
payment mechanisms for remittance transfers to foreign countries,
with a focus on countries that receive significant remittance
transfers from the United States, based on—
(A) the number,
volume, and size of such transfers;
(B) the significance of
the volume of such transfers relative to the external financial
flows of the receiving country, including—
(i) the total
amount transferred; and
(ii) the total volume of payments
made by United States Government agencies to beneficiaries and
retirees living abroad;
(C) the feasibility of such an
expansion; and
(D) the ability of the Federal Reserve
System to establish payment gateways in different geographic
regions and currency zones to receive remittance transfers and
route them through the payments systems in the destination
countries.
(2) REPORT TO CONGRESS.—Not
later than one calendar year after the date of enactment of this
Act, and on April 30 biennially thereafter during the 10-year
period beginning on that date of enactment, the Board of Governors
shall submit a report to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives on the status of the
automated clearinghouse system and its progress in complying with
the requirements of this subsection.
The report shall
include an analysis of adoption rates of International ACH
Transactions rules and formats, the efficacy of increasing
adoption rates, and potential recommendations to increase
adoption.
(c) EXPANSION OF FINANCIAL
INSTITUTION PROVISION OF REMITTANCE TRANSFERS.—
(1)
PROVISION OF GUIDELINES TO INSTITUTIONS.—Each of the
Federal banking agencies and the National Credit Union
Administration shall provide guidelines to financial institutions
unde the jurisdiction of the agency regarding the offering of
low-cost remittance transfers and no-cost or low-cost basic
consumer accounts, as well as agency services to remittance
transfer providers.
(2) ASSISTANCE TO
FINANCIAL LITERACY COMMISSION.—As part of its duties as
members of the Financial Literacy and Education Commission, the
Bureau, the Federal banking agencies, and the National Credit
Union Administration shall assist the Financial Literacy and
Education Commission in executing the Strategy for Assuring
Financial Empowerment (or the ‘‘SAFE Strategy’’), as it relates to
remittances.
(d) FEDERAL CREDIT UNION
ACT CONFORMING AMENDMENT.— Paragraph (12) of section 107 of
the Federal Credit Union Act (12 U.S.C. 1757) is amended to read
as follows:
‘‘(12) in accordance with regulations
prescribed by the Board—
‘‘(A) to sell, to persons in the
field of membership, negotiable checks (including travelers
checks), money orders, and other similar money transfer
instruments (including international and domestic electronic fund
transfers and remittance transfers, as defined in section 919 of
the Electronic Fund Transfer Act); and
‘‘(B) to cash checks
and money orders for persons in the field of membership for a
fee;’’.
(e) REPORT ON FEASIBILITY OF
AND IMPEDIMENTS TO USE OF REMITTANCE HISTORY IN CALCULATION OF
CREDIT SCORE.—Before the end of the 365-day period
beginning on the date of enactment of this Act, the Director shall
submit a report to the President, the Committee on Banking,
Housing, and Urban Affairs of the Senate, and the Committee on
Financial Services of the House of Representatives regarding—
(1) the manner in which the remittance history of a consumer
could be used to enhance the credit score of the consumer;
(2) the current legal and business model barriers and impediments
that impede the use of the remittance history of the consumer to
enhance the credit score of the consumer; and
(3)
recommendations on the manner in which maximum transparency and
disclosure to consumers of exchange rates for remittance transfers
subject to this title and the amendments made by this title may be
accomplished, whether or not such exchange rates are known at the
time of origination or payment by the consumer for the remittance
transfer, including disclosure to the sender of the actual
exchange rate used and the amount of currency that the recipient
of the remittance transfer received, using the values of the
currency into which the funds were exchanged, as contained in
sections 919(a)(2)(D) and 919(a)(3) of the Electronic Fund
Transfer Act (as amended by this section).
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