Compliance Compass: remittance rules take
effect Oct. 28
As of Oct. 28, 2013, new federal regulations
will require disclosures and other consumer protections if your credit
union regularly provides "international remittance transfers" over $15
to consumers. Credit unions that consistently provide 100 or fewer
remittance transfers each year will be exempt.
The phrase "international remittance
transfers" covers almost all cross-border electronic funds transfers
over $15 that are initiated by consumers and sent to foreign individuals
or businesses. That includes international ACH, international wire
transfers, and transfers via the World Council of Credit Unions IRnet
system, but not most transfers via credit, debit or prepaid cards.
Covered credit unions will have to give
disclosures to consumers before they pay for the remittance transfers,
showing, for example, the exchange rate and certain fees. New consumer
protections rules will also take effect. For example, consumers will get
30 minutes (and sometimes more) to cancel a transfer and get their money
This webpage includes links to various resources, including model
disclosure forms.CUNA’s e-Guidealso helps to explain the new rules and provides a set of
frequently asked questions.
Credit unions that offer international
remittance transfers should take steps now to be sure they have the
appropriate forms, procedures and training in place to comply before