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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.

Paul Guttormsson


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 back.


This webpage includes links to various resources, including model disclosure forms. CUNA’s e-Guide also 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 Oct. 28.


Questions? Contact me at (262) 408-6009.

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