Have you been having nightmares about International transfers like I have? The implementation date for one of the largest regulations created by the CFPB to date is quickly approaching. The big date is set for February 7, 2013 however, the date could be extended. But the real question is does it impact your financial institution? The answer is YES! You must determine the number of consumer-initiated international transactions that are originated from your financial institution. The magic number you are looking for is 100 international transfers in a calendar year; the count is an aggregate of your wire, ACH, prepaid cards and bill payment volume.
If your institution originates more than 100 transactions in a calendar year you need to read the regulation, and figure out how you are going to comply. Your compliance requirements include disclosure of information such as taxes, fees and settlement date in the foreign country. Watch the clock though because the consumer has 30 minutes to cancel the transfer after they have agreed to the terms of the disclosure. The new regulation also allows the consumer to dispute “issues” with the transaction for 180 days from the date you tell the consumer it will arrive at the foreign location.
If your institution does not originate more than 100 transactions you are safe, for now. One thing to keep in mind is you need to monitor the number of transactions you are originating every year and once you cross the century mark in a given year you have 6 months to be in compliance with the regulation. If you never cross the threshold life is good, but you need to continue to monitor the number of transactions just in case you ever do cross the line.
If you are looking to read this regulation for yourself it can be found on the CFPB website: http://www.consumerfinance.gov/regulations/final-remittance-rule-amendment-regulation-e/
The CFPB had a webinar and presentation on the rule and they have made the recording available for no charge if you missed the live event. http://www.consumerfinance.gov/blog/remittance-rule-session/
They have also compiled a small business guide that will help make compliance with the rules easier. Check it out for yourself! http://files.consumerfinance.gov/f/201210_cfpb_small_business_guide.pdf
Best of luck with your compliance and don’t take a sleeping pill until after February 7, 2013. Stay tuned for more information!