EFTA - Remittance transfers
For all other instances of failure to make funds available by the disclosed date of availability, as applicable, the remittance transfer provider must either:
1. Refund to the sender, the amount of funds which was not properly transmitted or the amount appropriate to resolve the error; or 2. Make available to the designated recipient the amount appropriate to resolve the error without additional cost to the sender or to the designated recipient; and Refund to the sender any fees imposed and, to the extent not prohibited by law, taxes collected on the remittance transfer
If a remittance transfer provider qualifies for either the permanent exception, the rule allows two bases for estimating information in the disclosures:
1. The estimates must generally be based on any of the approaches listed in the rule 2. Alternatively, the estimates may be based on an approach that is not listed, provided that the designated recipient receives the same, or greater, amount of funds than the remittance transfer provider disclosed.
What are the two transfer amount disclosures are required in the prepayment disclosures
1. The transfer amount in the currency in which the sender funds the remittance transfer to show the calculation of the total amount of the transaction. 2. The transfer amount in the currency in which the funds will be made available to the designated recipient. This second transfer amount need not be disclosed if covered third-party fees are not imposed on the remittance transfer. The terms used to describe each transfer amount should be the same.
What must the provider disclose on the prepayment disclosure?
1. the amount to be transferred (transfer amount), 2. front-end fees imposed by the provider and any taxes collected on the remittance transfer by the provider (transfer fees and transfer taxes), 3. total amount of the transaction (the sum of the transfer amount and front-end fees and taxes), 4. the exchange rate, 5. any covered- third-party fees (other fees), 6. the total amount to be received by the designated recipient (total amount of the transaction minus covered third-party fees), and 7. a statement that non-covered third-party fees or taxes collected on the remittance transfer by a third person may apply to the remittance transfer and result in the designated recipient receiving less than the amount disclosed. In this statement, a provider also may, but is not required, to disclose in the currency in which the funds will be received, any applicable non-covered third-party fees or taxes collected by a person other than the provider.
The notice of error must be received by the remittance transfer provider within
180 days of the disclosed date of availability of the remittance transfer.
A remittance transfer provider must investigate promptly and determine whether an error occurred within
90 days of receiving a notice of error
How are business days defined in terms of remittance transfers?
A business day is any day that the offices of a remittance transfer provider are open to the public for carrying on "substantially all business functions
if the notice of error is based on documentation, additional information, or clarification provided by the remittance transfer provider, then notice is timely if it is received by the remittance transfer provider the later of:
A. 180 days after the disclosed date of availability of the remittance transfer, or B. 60 days after the provider sent the documentation, information, or clarification that had been requested
How does the regulation define a remittance transfer error?
A. Generally, an incorrect amount paid by a sender in connection with a remittance transfer; B. A computational or bookkeeping error made by the remittance transfer provider relating to the remittance transfer; C. The failure, generally, to make available to a designated recipient the amount of currency required to be disclosed under 12 CFR 1005.31(b)(vii) and stated in the disclosure provided to the sender unless the disclosure stated an estimate of the amount paid and the difference results from application of the actual exchange rate, fees, and taxes, rather than any estimated amount; D. The failure, generally, to make funds available to a designated recipient by the date of availability stated in the disclosure provided to the sender; or E. The sender's request for documentation required by 12 CFR 1005.31 or for additional information or clarification concerning a remittance transfer, including a request a sender makes to determine whether an error exists.
The laws of the recipient country do not permit a remittance transfer provider to determine exact amounts required to be disclosed when a law or regulation of the recipient country (e.g., currency exchange or certain privacy laws) do not allow the person making funds directly available to the designated recipient to determine the exact amounts at the time the disclosure is required. A typical example is where the law requires an exchange rate to be either
A. Set by the government of the recipient country after the remittance transfer provider sends the remittance transfer; or B. Set when the designated recipient receives the funds
Disclosures that are provided in writing or electronically, other than disclosures permitted to be provided via mobile application or text message, must be segregated from everything else and must contain only information that is "directly related" to the disclosures. The following is "directly related" information
A. The date and time of the transaction; B. The sender's name and contact information; C. The location at which the designated recipient may pick up the funds; D. The confirmation or other identification code; E. A company name and logo; F. An indication that a disclosure is or is not a receipt or other indicia of proof of payment; G. A designated area for signatures or initials; H. A statement that funds may be available sooner; I. Instructions regarding the retrieval of funds, such as the number of days the funds will be available to the recipient before they are returned to the sender; J. A statement that the provider makes money from foreign currency exchange; and K. Disclosure of any non-covered third-party fees and any taxes collected by a person other than the provider
Whether a foreign language is principally used by the remittance transfer provider to advertise, solicit, or market is determined from all relevant facts and circumstances, including:
A. The frequency with which the foreign language is used in advertising, soliciting, or marketing of remittance transfer services at that office; B. The prominence of the advertising, soliciting, or marketing of remittance transfer services in that foreign language at that office; and C. The specific foreign language terms used in the advertising soliciting, or marketing of remittance transfer services at that office
Estimates may be provided in pre-payment disclosures, receipts or combined disclosures for transfers to certain countries if a remittance transfer provider cannot determine the exact amounts at the time the disclosure is required either because:
A. The laws of the recipient country do not permit such a determination, or B. The method by which transactions are made in the recipient country does not permit such determination.
The notice of error is effective so long as the remittance transfer provider is able to identify:
A. The sender's name and telephone number or address (or email address) B. The recipient's name and if known, telephone number and address; C. The remittance transfer to which the notice of error applies; and D. Why the sender believes an error exists and if possible, the type, date, and amount of the error, except for errors involving requests for documentation, additional information or clarification.
What are examples of remittance transfers? (there are 5 in the manual)
A. Transfers in cash or by another method conducted through a money transmitter or a financial institution. B. Consumer wire transfers conducted by a financial institution upon a sender's request to wire money from the sender's account to a designated recipient. C. An addition of funds to a prepaid card by a participant in a prepaid card program, such as a prepaid card issuer or its agent, that is directly engaged with the sender to add these funds, where the prepaid card is sent or was previously sent by a participant in the prepaid card program to a person in a foreign country, even if a sender retains the ability to withdraw such funds. D. International ACH transactions sent by the sender's financial institution at the sender's request. E. Online bill payments and other electronic transfers that a sender schedules in advance, including preauthorized remittance transfers, made by the sender's financial institution at the sender's request to a designated recipient
If the remittance transfer provider determines an error (as defined in subpart B) occurred and the error relates to (THREE THINGS) the provider must either (TWO THINGS)
A. an incorrect amount paid by the sender B. a computational or bookkeeping error made by the remittance transfer provider, or C. failure to make the amount of currency stated in the disclosures available to the designated recipient and A. refund the amount of funds provided by the sender in connection with a remittance transfer which was not properly transmitted, or the amount appropriate to resolve the error; or B. make available to the designated recipient, the amount appropriate to resolve the error without additional cost to the sender or the designated recipient
There is no error if funds were not made available by the disclosed date due to:
A. extraordinary circumstances outside the remittance transfer provider's control that could not have been reasonably anticipated; B. delays related to a necessary investigation or other special action by the remittance transfer provider or a third party as required by the provider's fraud screening procedures or in accordance with BSA, or similar laws or requirements; or C. the remittance transfer was made with fraudulent intent by the sender or any person acting in concert with the sender (i.e., friendly fraud); or D. the sender provided the remittance transfer provider an incorrect account number or recipient institution identifier for the designated recipient's account or institution and: 1. the remittance provider can demonstrate that the sender provided an incorrect account number or recipient institution identifier to the provider in connection with the remittance transfer; 2. the provider used reasonable available means prior to or when sending the transfer to verify (for recipient institution identifier errors only) that the recipient institution identifier provided by the sender corresponded to the recipient institution name provided by the sender; 3. the provider provided notice to the sender (prior to payment for the remittance transfer) that, in the event the sender provided an incorrect account number or recipient institution identifier, the sender could lose the transfer amount. 4. the incorrect account number or recipient institution identifier resulted in the deposit of the remittance transfer into a customer's account that is not the designated recipient's account; and 5. the provider promptly used reasonable efforts to recover the amount that was to be received by the designated recipient
When payment is made, a remittance transfer provider must provide a receipt to a sender disclosing all applicable information required in the pre-payment disclosure. The receipt must also disclose, as applicable:
A. the date of availability of the funds (date available); B. the name and, if provided by the sender, the telephone number and/or address of the designated recipient (recipient); C. a statement about the sender's error resolution and cancellation; D. specified contact information for the remittance transfer provider; and E. the transfer date for remittance transfers scheduled at least three business days in advance, or the first transfer in a series of preauthorized transfers.
How does the regulation define agent in terms of remittance transfers?
Agent is an agent, authorized delegate, or person affiliated with a remittance transfer provider, as defined under state or other applicable law, when that person acts for a remittance transfer provider. A person is not deemed a remittance transfer provider when it performs activities as an agent on behalf of a remittance transfer provider
When does an electronic funds transfer occur?
An electronic transfer of funds occurs when: A. A provider makes an electronic book entry between different settlement accounts to make the remittance transfer. B. A payment is made under a bill-payment service available to a consumer via computer or other electronic means, except in certain circumstances where a check, draft or similar paper instrument drawn on a consumer's account under the bill-payment service is mailed abroad.
How does the regulation define an office?
An office includes any physical location, telephone number, or website of a remittance transfer provider where a sender may conduct a remittance transfer or assert an error for a remittance transfer
What information should be grouped together on the disclosure?
Disclosures related to transfer amount, transfer fees and taxes imposed by the provider, and the total amount of the transaction generally must be grouped together. Similarly, disclosures related to the transfer amount in the currency to be made available to the designated recipient, covered third-party fees ,taxes collected on the remittance by the provider, the total amount to be received by the designated recipient, and the disclaimer statement generally must be grouped together
T or F: Certain transactions in connection with securities and commodities transfers that are excluded from the definition of an EFT are remittance transfers.
False
T or F: Transactions of $15 or less are remittance transfers.
False
T or F: Prepayment disclosures provided via mobile application or text message (when permitted by the rule) must meet remittance transfer retention requirements.
False, they do not need to be retainable
When can the provider provide confirmation that the transaction has been scheduled in lieu of the proof of payment if payment is not processed at the time the remittance transfer is scheduled?
For one-time transfers scheduled at least five business days in advance, or for the first in a series of preauthorized transfers
What does the regulation say about the disclosure of the applicable exchange rate on the prepayment disclosure?
If the designated recipient will receive funds in a currency other than the currency in which the remittance transfer is funded, a remittance transfer provider must disclose the exchange rate to be used by the provider for the remittance transfer
What are examples for "Exceptions for extraordinary circumstances outside the remittance transfer provider's control"
If the provider fails to make the amount of currency disclosed available to the designated recipient, such an occurrence is not an error if such failure was caused by extraordinary circumstances outside the remittance transfer provider's control that could not have been reasonably anticipated. Examples include war or civil unrest, natural disaster, garnishment or attachment of some of the 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 or foreign taxes unknown at the time the receipt or combined disclosure is provided
What kinds of transfers would be excluded from the calculation of the safe harbor?
Low value transactions (less than $15) and certain securities and commodities transfers
Are foreign taxes required to be disclosed?
No
Does an electronic funds transfer occur when a sender mails funds directly to a recipient, or funds are provided to a courier for delivery to a foreign country?
No
Has a consumer who solely inquires about that day's rates and fees to send to a particular country, requesting a remittance transfer?
No
Is this an error: The designated recipient will receive less than the amount of currency disclosed on the receipt due solely to the additional foreign taxes that the provider was not required to disclose.
No
T or F: If a remittance transfer transaction is conducted orally in Spanish, the provider can provide disclosures in English.
No, they must be in the form of the language the oral transaction was made in Oral, mobile application, or text message disclosures. Disclosures provided orally for transactions conducted orally and entirely by telephone under paragraph (a)(3) of this section or orally or via mobile application or text message for transactions conducted via mobile application or text message under paragraph (a)(5) of this section shall be made in the language primarily used by the sender with the remittance transfer provider to conduct the transaction. Disclosures provided orally under paragraph (a)(4) of this section for error resolution purposes shall be made in the language primarily used by the sender with the remittance transfer provider to assert the error -> LANGUAGE PART IMPORTANT
What is a preauthorized remittance transfer?
Pre-Authorized remittance transfer is a remittance transfer authorized in advance to recur at substantially regular intervals.
how is a remittance transfer defined?
Remittance transfer is an electronic transfer of funds requested by a consumer in a state to a designated recipient that is sent by a remittance transfer provider. The term applies whether or not the consumer holds an account and whether or not the transfer is an electronic fund transfer.
How does the reg define a sender?
Sender is a consumer in a state, who requests a remittance transfer primarily for personal, family, or household purposes. For account-based transfers, the location of the consumer's account will determine whether the consumer is located in a state. For transfers not made from an account that are requested by telephone or electronically, the remittance transfer provider may make the determination of whether a consumer is located in a state based on information provided by the consumer and any records associated with the consumer
Why should disclosures be provided in written and retainable form?
So customers can shop around for a better rate
What is the safe harbor list?
The CFPB published a list of countries whereby a remittance transfer provider may provide estimates for the exchange rate, the transfer amount, covered third-party fees and total amount to the recipient, unless the provider has information that a country on the list legally permits the provider to determine exact disclosure amounts. If a country does not appear on the CFPB's list, the provider may provide estimates if it determines that the recipient country does not legally permit or the method by which transactions are conducted in that country does not permit the provider to determine exact disclosure amounts The list of countries that became effective February 7, 2013 and remains current as of June 2018 is Aruba, Brazil, China, Ethiopia, and Libya.
What is referred to as the Amount appropriate to resolve the error
The amount appropriate to resolve the error is the specific amount of transferred funds that should have been received if the remittance transfer had taken place without error. It does not include consequential damages.
What does the regulation say about the exchange rate used?
The exchange rate used by the provider for the remittance transfer need not have been set by the provider. For example, an exchange rate set by an intermediary institution and applied to the remittance transfer would be the exchange rate used for the remittance transfer and must be disclosed by the provider
What does the regulation say about proximity of disclosed information?
The exchange rate used for the remittance transfer generally must be disclosed in close proximity to the other information required in the pre-payment disclosure. Disclosures on error resolution and cancellation rights must generally be disclosed in close proximity to the other disclosures required on the receipt
What does the regulation say about Optional disclosure of non-covered third-party fees and taxes collected by a person other than the provider
The provider is permitted to disclose any non-covered third-party fees or taxes collected on the remittance transfer by a person other than the provider that will apply to a particular transaction if it knows the amount of such fees and taxes. Additionally, the provider is permitted to disclose an estimate of such fees and taxes, provided any estimates are based on reasonable source of information
What is the Required disclaimer when non-covered third-party fees and taxes collected by a person other than the provider may apply
The provider is required to include a disclaimer that non-covered third-party fees or taxes may apply to the remittance transfer if such taxes and fees apply to a particular transfer or the provider does not know whether they apply. This disclosure may only be provided to the extent applicable. For example, if the designated recipient's institution is an agent of the provider and thus, non-covered third-party fees cannot apply to the transfer, the provider must disclose all fees imposed on the remittance transfer and may not provide the disclaimer regarding non-covered third-party fees
What should be included in the cancellation disclosure?
The provider may provide the three-business-day right to cancel notice (for transfers scheduled three or more business days before the transfer date) and the 30-minute right to cancel notice (for transfers scheduled fewer than three business days in advance), on the same disclosure, with a checkbox or other method to clearly designate the applicable cancellation period. For transfers scheduled three or more business days before the transfer date, the cancellation disclosure should be phrased and formatted in such a way that it is clear to the sender which cancellation period is applicable to the date of transfer disclosed on the receipt
What does the regulation say about Designation of requested remedy?
The provider may request that the sender indicate the preferred remedy when providing the notice of the error. If the provider does so, it should indicate that a resend remedy may be unavailable if the error occurred because the sender provided incorrect or insufficient information. 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 written explanation of findings
What does the regulation say about rounding on the prepayment disclosure?
The provider may round to two, three, or four decimal places, at its option, but this must be done consistently for each currency. (Comment 31(b)(1)(iv)-2). However, the exchange rate used to calculate: (a) the transfer amount, (b) the fees and taxes imposed on the remittance transfer by a person other than the provider, and (c) the amount received by the designated recipient, is prior to any rounding. If an exchange rate need not be rounded, a provider must use that exchange rate to calculate these disclosures
What does the regulation say about Default remedy (except where the sender provided incorrect or insufficient information)?
The provider may set a default remedy that the remittance transfer provider will use if the sender does not designate a remedy within a reasonable time after receiving the written explanation of findings. If a default remedy is provided, the remittance transfer provider must correct the error within one business day or as soon as reasonably practicable, after the reasonable time for the sender to designate the remedy has passed. For purposes of designating a remedy, ten days is deemed a reasonable time
What must be included in the agencies to be disclosed part of the receipt?
The provider must disclose information about a state agency that licenses or charters the provider with respect to the particular remittance transfer. If a financial institution is solely regulated by a Federal agency, the institution does not need to disclose information about a state agency. However, information about the CFPB must be provided whether or not the CFPB is the provider's primary Federal regulator. If a provider is licensed in multiple states, and the state agency that licenses the provider with respect to the remittance transfer is determined by the sender's location, a provider may make the determination of the sender's state based on information provided by the sender and on any records associated with the sender. A state-chartered bank must disclose information about the state agency that granted its charter, regardless of the location of the sender
What must be described when it comes to the date funds will be available?
The provider must disclose the date in the foreign country on which the funds will be available to the designated recipient, using the term "Date Available" or a substantially similar term. If a provider does not know the exact date on which funds will be available, the provider may disclose the latest date on which the funds will be available. The provider may also disclose that funds "may be available sooner" or use a substantially similar term to inform senders that funds may be available to the designated recipient on a date earlier than the date disclosed.
How should the amount received be disclosed?
The remittance transfer provider is required to disclose the amount that will be received by the designated recipient in the currency in which the funds will be received. The amount received must reflect the exchange rate, all fees imposed and all taxes collected on the remittance transfer by the remittance transfer provider, as well as any covered third-party fees required to be disclosed. The disclosed amount received must be reduced by the amount of any fees or taxes (except non-covered third-party fees or taxes collected on the remittance transfer by a person other than the provider) imposed on the remittance transfer that affect the amount received even if that amount is imposed or itemized separately from the transaction amount.
What does the Permanent Exception for Optional Disclosure of Non-Covered Third-Party Fees and Taxes Collected on the Remittance Transfer by a Person Other Than the Provider say?
The remittance transfer provider may provide estimates (as part of the required disclaimer statement) for applicable non-covered third-party fees and taxes collected on the remittance transfer by a person other than the provider, if such estimates are based on reasonable sources of information. Reasonable sources of information may include, for example: information obtained from recent transfers to the same institution or the same country or region; fee schedules from the recipient institution; fee schedules from the recipient institution's competitors; s
what are the general rules on providing disclosures for remittance transfer
The rule requires providers to give senders a pre-payment disclosure when a transfer request is made, but prior to payment for the transfer. Providers must also provide a receipt when payment is made for the transfer.
What are the exceptions to the "Error due to incorrect amount of currency received" errors that do not count as errors?
There is no error if: A. the disclosure appropriately, under one of the two exceptions under 12 CFR 1005.32, stated an estimate of the amount of currency to be received and the difference results from application of the actual exchange rate, fees, and taxes, rather than any estimated amounts, or B. the failure was caused by extraordinary circumstances outside the remittance transfer provider's control; or 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 required disclaimer
What types of errors are applicable to "Errors due to failure to make funds available by disclosed date of availability"
This error generally covers disputes about the failure to make remittance transfer funds available to a designated recipient by the disclosed date of availability. Examples include late or non-delivery of a remittance transfer, delivery of funds to the wrong account, the fraudulent pick-up of a remittance transfer in a foreign country by a person other than the designated recipient, and the recipient agent or institution's retention of the remittance transfer, instead of making the funds available to the designated recipient
What types of errors are covered specific to "Error due to incorrect amount of currency paid by sender"? What does it not cover?
This type of error 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. However, there is no error if the disclosure appropriately stated an estimate of the amount paid by the sender and the difference results from application of the actual exchange rate, fees, and taxes, rather than any estimated amounts
What types of errors are covered specific to "Error due to incorrect amount of currency received"
This type of error covers circumstances in which the designated recipient receives an amount of currency that differs from the amount of currency identified on the disclosures provided to the sender. It also covers circumstances in which the remittance transfer provider transmits an amount that differs from the amount requested by the sender.
When must a remittance transfer provider make available to a sender a notice providing a full description of the sender's error resolution rights?
Upon request
How does the regulation define normal course of business and how does the safe harbor come into play?
Whether a person provides remittance transfers in the "normal course of business" depends on the facts and circumstances, including the total number and frequency of remittance transfers sent by the provider. The rule also provides a safe harbor for a person that provided 500 or fewer remittance transfers in the previous calendar year and provides 500 or fewer remittance transfers in the current calendar year (a total via all channels). Such a person is deemed not to be providing remittance transfers in the normal course of business and is therefore not subject to the rule's requirements
What does the regulation say about foreign language disclosures?
Written and electronic disclosures generally must be provided in English and in each foreign language principally used to advertise, solicit, or market remittance transfer services at the office in which a sender conducts a transaction or asserts an error. Alternatively, written and electronic disclosures can be provided in English and in the foreign language primarily used by the sender with the remittance transfer provider, provided such foreign language is principally used to advertise, solicit, or market remittance transfers at the office in which a sender conducts a transaction or asserts an error. For transfers requested orally, by text message, or mobile application, the disclosures must be in the language primarily used by the sender to communicate with the transfer provider
An insured institution cannot determine exact amounts "for reasons beyond its control" when
a person other than the insured institution or with which the insured institution has no correspondent relationship sets the exchange rate or imposes a covered third-party fee required to be disclosed.
If a person exceeds the safe harbor criteria and is providing remittance transfers for consumers in the normal course of business, that person has
a reasonable period of time, not to exceed six months, to begin complying with subpart B
fees and taxes required to be disclosed include
all fees imposed and all taxes collected on the remittance transfer by the provider, and include only those that are specifically related to the remittance transfer. For example, a provider must disclose any service fees imposed by an agent at the time of the transfer, and any state taxes collected on the remittance transfer
what are "Non-covered third-party fees
any fees imposed by the designated recipient's institution for receiving a remittance transfer into an account except if the institution acts as an agent of the remittance transfer provider. For example, a fee imposed by the designated recipient's institution for receiving an incoming transfer into an account is a non-covered third-party fee, if the institution is not acting as the agent of the remittance transfer provider. A designated recipient's account does not include a credit card, prepaid card, or a virtual account held by an Internet-based or mobile telephone company that is not a bank, savings association, credit union or equivalent institution
What are covered third party fees?
any fees that are imposed on the remittance transfer by a person other than the remittance transfer provider that are not non-covered third-party fees. Fees imposed on the remittance transfer include only those fees that are charged to the designated recipient and are specifically related to the remittance transfer Examples include fees imposed on a remittance transfer by intermediary institutions in connection with a wire transfer (sometimes referred to as "lifting fees") and fees imposed on a remittance transfer by an agent of the provider at pick-up for receiving the transfer
How does the regulation define a designated recipient
any person identified by the name provided by a sender to receive a remittance transfer at a location in a foreign country. A designated recipient can be either a natural person or an organization such as a corporation ****where funds are to be received depends on where the recipient's account is located.
How does the reg define "remittance transfer provider"?
any person that provides remittance transfers for a consumer in the normal course of business, regardless of whether the consumer holds an account with such person
If the remittance transfer provider determines an error related to failure to make funds available by the disclosed date occurred, it must
correct the error and refund any fees imposed by the provider or a third party involved in sending the transfer, such as an intermediary bank involved in sending a wire transfer or the institution from which the funds are picked up (unless the sender provided incorrect or insufficient information to the remittance transfer provider in connection with the remittance transfer
T or F: A designated recipient's account includes a credit card, prepaid card, or a virtual account held by an Internet-based or mobile telephone company that is not a bank, savings association, credit union or equivalent institution
false, only an asset account
T or F: Whether a provider has used reasonable efforts depends on whether the provider is ultimately successful in recovering the amount that was to be received by the designated recipient.
false; If the remittance transfer provider is requested to provide documentation or other supporting information in order for the pertinent institution or authority to obtain the proper authorization for the return of the incorrectly credited amount, reasonable efforts to recover the amount include timely provision of any such documentation to the extent that it is available and permissible under law
T or F: Pre-payment disclosures may be provided electronically without E-SIGN consent, if the sender electronically requests the provider to send the transfer. The receipt for the transaction can also be provided this way to, without ESign consent
false; prepayment can be sent without esign consent, but receipt of transaction cannot
Fees imposed and taxes collected on the remittance transfer by a provider must be disclosed
in the currency in which the transaction is funded, as applicable.
If a transaction is conducted entirely by telephone via mobile application or text message, a receipt may be provided how?
mailed or delivered to the sender pursuant to the timing requirements for transfers conducted entirely by telephone
Is a remittance transfer provider required to guarantee the terms of the remittance transfer in the pre-payment disclosures for any specific period of time?
no
Is this an error? A change in the amount or type of currency received by the designated recipient from the amount or type of currency stated in the disclosure provided to the sender if the remittance transfer provider relied on information provided by the sender
no
Is this an error? A change requested by the designated recipient that the remittance transfer provider or others involved in the remittance transfer decide to accommodate
no
Is this an error? An inquiry about the status of a remittance transfer EXCEPT where the funds from the transfer were not made available to a designated recipient by the disclosed date of availability
no
is this an error? A request for information for tax or other recordkeeping purposes
no
if an insured institution has a correspondent relationship with an intermediary financial institution in another country and that intermediary institution sets the exchange rate or imposes a fee for remittance transfers sent from the insured institution to the intermediary institution, can the inst say cannot determine the exact amounts for reasons beyond its control?
no; the insured institution must determine exact amounts for the disclosures because the determination of those amounts are not beyond the insured institution's control
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
If this combined disclosure is provided and the sender completes the transfer, the remittance transfer provider must provide the sender with
proof of payment when payment is made for the remittance transfer
The date of transfer for the remittance transfer must be disclosed on the receipt for
remittance transfers scheduled at least three business days in advance, or the first transfer in a series of preauthorized transfers
Where can an inst derive their estimates?
the exchange rate may be estimated based on the most recent publicly available wholesale exchange rate and any applicable spread that the remittance transfer provider or its correspondent typically applies for remittance transfers for that currency or the most recent exchange rate offered or used by the person making funds available directly to the designated recipient or by the person setting the exchange rate
Where the exchange rate for a remittance transfer sent via international ACH that qualifies for the permanent exception is set the following business day, what rate should be used?
the most recent exchange rate available for a transfer is the exchange rate set for the day that the disclosure is provided, i.e. the current business day's exchange rate
For remittance transfers sent via international ACH, the estimate must be based on
the most recent exchange rate set by the recipient country's central bank or other governmental authority and reported by a Federal Reserve Bank
If a sender does not know the currency in which funds will be received,
the provider may assume that the currency in which funds will be received is the currency in which the remittance transfer is funded
What can a provider do if it does not have specific knowledge regarding the currency in which the funds will be received?
the provider may rely on a sender's representation as to the currency in which funds will be received.
If any of the remittance transfer disclosures are not accurate when a sender makes payment for the remittance transfer, what should they do?
the provider must give new disclosures before accepting payment
if the provider determines that no error or a different error occurred, what should the provider provide to the sender?
the provider must provide a written explanation of the findings, and note the sender's right to request the documents on which the provider relied in making its determination
The remittance transfer provider must report the results to the sender within
three business days after completing its investigation and include notice of any remedies available for correcting any error that the provider determines has occurred.
Where failure to make funds available by the disclosed date of availability occurred due to incorrect or insufficient information provided by the sender: The remittance transfer provider is required to do what?
to refund to the sender the amount of funds that was not properly transmitted, or the amount appropriate to resolve the error, and any fees and taxes paid by the sender in connection with the remittance transfer, within three business days of providing the written explanation of findings. However, the provider may agree to the sender's request, upon receiving the results of the error investigation, to apply the funds towards a new remittance transfer, rather than be refunded, if the provider has not yet processed a refund. The provider may deduct from the amount refunded or applied towards a new transfer any fees actually deducted by a person other than the provider (except those that will ultimately be refunded to the provider) on or, to the extent not prohibited by law, taxes actually collected on the remittance transfer as part of the first unsuccessful remittance transfer attempt and inform the sender of the deduction and reason. The provider may not deduct its own fees. The agreement to apply the funds towards a new transfer is treated as a new remittance transfer and the provider must provide new disclosures
T or F: A remittance transfer provider is not required to comply with the error resolution requirements for any notice of error from a sender that is received more than 180 days from the disclosed date of availability of the remittance transfer or, if applicable, more than 60 days after a provider sent documentation, additional information, or clarification requested by the sender
true
T or F: If, before the disclosed date of availability the sender informs the provider that the sender provided a wrong account number, the provider will have acted promptly if it attempts to contact the recipient's institution before the date of availability.
true
T or F: The error resolution procedures apply only when a notice of error is received from the sender
true
When is a remittance transfer provider required to promptly provide a notice describing the sender's error resolution and cancellation rights?
when the sender requests
Covered third-party fees must be disclosed in the currency in which the funds
will be received by the designated recipient using the applicable exchange rate, or an estimated exchange rate to the extent permitted, prior to any rounding of the exchange rate.
Is this a legitimate error? A designated recipient receives an amount of currency that differs from the amount of currency disclosed due to an exchange rate other than the disclosed rate is applied to the remittance transfer.
yes
Is this an error? A designated recipient receives an amount of currency that differs from the amount of currency disclosed because the provider provides the sender a receipt stating an amount of currency that will be received by the designated recipient, which does not reflect additional covered third-party fees that are imposed by the receiving agent in the destination country
yes
Can a remittance transfer provide combined pre-payment and receipt disclosures? If so, when must they be provided?
yes and prior to payment of transfer
Can the proof of payment be provided on the same piece of paper as the combined disclosure?
yes, or on a separate paper The proof of payment or confirmation of scheduling must be clear and conspicuous, provided in writing or electronically, and provided in a retainable form. A provider may also provide this additional information to a sender on a separate piece of paper when payment is made
