Remittance Transfers: Small Entity Compliance Guide
Remittance Transfers: Small Entity Compliance Guide
Remittance Transfers: Small Entity Compliance Guide
Remittance transfers
Small entity compliance guide
Version Log
The Bureau updates this Guide on a periodic basis to reflect finalized clarifications to the rule
which impacts guide content, as well as administrative updates. Below is a version log noting
the history of this document and its updates:
Two new permanent exceptions that permit banks and credit unions to use
estimates in disclosures of certain fees and exchange rates in certain
circumstances (Sections 4.2.2 and 4.2.3).
Updated to note that this guide is a Compliance Aid under the Bureau’s Policy
Statement on Compliance Aids (Section 1.1).
Updated to include the Bureau’s current process for informal inquiries (Section 1.2).
January 4.0 Updated to address revised requirements regarding application of the Rule to
2017 prepaid accounts.
The amount appropriate to resolve an error for the failure to make funds
available by the date of availability.
August 2.0 Updated to address revised requirements concerning the disclosure of institution
2013 fees and foreign taxes and procedures that apply to errors that result from a
consumer providing incorrect account information.
Table of contents......................................................................................................... 3
1. Introduction ........................................................................................................... 5
1.1 Purpose of this guide ................................................................................ 5
1.2 Additional implementation resources...................................................... 6
1.3 Use of examples in this guide ................................................................... 6
2. Summary ............................................................................................................... 7
2.1 Coverage ................................................................................................... 7
2.2 Disclosure obligations .............................................................................. 8
2.3 Cancellation and error resolution rights .................................................. 9
4. Disclosures ......................................................................................................... 17
4.1 Disclosure requirements ......................................................................... 17
4.2 Estimates allowed in limited circumstances .......................................... 28
6. Recordkeeping .................................................................................................... 43
6.1 Obligations .............................................................................................. 43
In this guide, the transactions covered by the Remittance Transfer Rule are called “remittance
transfers,” or “remittances.” Consumers may also refer to them by other names, such as
“international money transfers” or “international wires.”
This guide meets the requirements of Section 212 of the Small Business Regulatory Enforcement
Fairness Act of 1996, which requires the Bureau to issue a small entity compliance guide to help
small businesses comply with new regulations.
This guide is a Compliance Aid issued by the Consumer Financial Protection Bureau. The
Bureau published a Policy Statement on Compliance Aids, available at
http://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/policy-statement-
compliance-aids/, that explains the Bureau’s approach to Compliance Aids. Users of this guide
should review the Remittance Transfer Rule as well as this guide. The Remittance Transfer Rule
is available on the Bureau’s website at https://www.consumerfinance.gov/policy-
compliance/guidance/deposit-accounts-resources/remittance-transfer-rule/. An unofficial
compilation of the complete Rule, including the Official Interpretations, is also available at that
The focus of this guide is the Remittance Transfer Rule. This guide does not discuss other
federal or state laws that may apply to remittance transfers or remittance transfer providers.
The content of this guide does not include any rules, bulletins, guidance, or other interpretations
issued or released after the date on the guide’s cover page.
A person who has a specific regulatory interpretation question about the Remittance Transfer
Rule after reviewing these materials may submit the question on the Bureau’s website at
http://reginquiries.consumerfinance.gov/. A person may also leave his or her question in a
voicemail at 202-435-7700. Bureau staff provides only informal responses to regulatory
inquiries, and the responses do not constitute official interpretations or legal advice.
Generally, Bureau staff is not able to respond to specific inquiries the same business day or
within a particular requested timeframe. Actual response times will vary based on the number
of questions Bureau staff is handling and the amount of research needed to respond to a specific
question.
For email updates about when additional rules or implementation resources become available,
please submit your email address within the “Email Updates” box at the Bureau’s website at
https://www.consumerfinance.gov/policy-compliance/guidance/.
2.1 Coverage
The Remittance Transfer Rule applies to transactions that (i) qualify as remittance transfers,
and (ii) are sent on behalf of consumers by entities that qualify as remittance transfer providers.
Remittance transfers are electronic transfers of funds that are more than $15, requested by
consumers in the United States, and sent to people or entities in foreign countries. These
transfers include many types of international transfers, including cash-to-cash money transfers,
international wire transfers, international automated clearing house (ACH) transactions, and
certain prepaid card transfers. Additional information on remittance transfers is available in
Section 3.
The Remittance Transfer Rule applies to most entities that offer remittance transfers, including:
Banks;
Thrifts;
Credit unions;
Broker-dealers.
Prior to July 21, 2020, entities that send 100 or fewer remittance transfers in the prior and
current calendar years do not qualify as remittance transfer providers under the Remittance
Transfer Rule and thus are not subject to it. Effective July 21, 2020, entities that send 500 or
fewer remittance transfers in the prior and current calendar years do not qualify as remittance
transfer providers under the Remittance Transfer Rule and thus are not subject to it. This
aspect of the Remittance Transfer Rule is discussed in Section 3.2.2.
Additional information on which entities are remittance transfer providers subject to the
Remittance Transfer Rule is available in Section 3.2.
The first disclosure – known as a pre-payment disclosure – is given to a sender before the
sender pays for the remittance transfer. This disclosure must list the amount of money to be
transferred; the exchange rate; certain fees including those collected by the remittance transfer
provider; taxes collected by the provider; and the amount of money expected to be delivered
abroad, not including non-covered third-party fees or foreign taxes. Disclosure of foreign taxes
and non-covered third-party fees is optional, although the provider must include a statement
indicating that such fees and taxes may apply, as discussed in Section 4.1.1. The fact that the
remittance transfer provider provides this pre-payment disclosure does not mean that the
sender is obligated to complete the transaction. Indeed, senders may compare these disclosures
across a number of providers. More information on the pre-payment disclosure is discussed in
Section 4.1.1.
A remittance transfer provider must also provide a receipt when payment is made. The receipt
is required to include the information in the pre-payment disclosure. If the pre-payment
disclosure is inaccurate, a corrected disclosure must be provided. The receipt must also indicate
the date when the money will be available, in addition to other specific information, as discussed
in Section 4.1.2.
Instead of issuing a separate pre-payment disclosure and receipt, a remittance transfer provider
may opt to provide a single combined disclosure before the sender pays for the transfer, so long
as proof of payment is given when payment is made. This option for providing a single
combined disclosure is discussed in Section 4.1.3.
As discussed in Section 8, there are special disclosure rules for transfers scheduled in advance of
the transfer date. Insured depository institutions and credit unions are covered by the
Remittance Transfer Rule, but the Rule has exceptions that may allow them to estimate certain
disclosures in certain circumstances. These exceptions are discussed in Section 4.2.
This section discusses what is, and is not, a remittance transfer. It also discusses who is, and is
not, a remittance transfer provider. Only remittance transfers sent by remittance transfer
providers are subject to the requirements outlined in this guide.
The sender has an account with the remittance transfer provider; and
The transfer is an electronic fund transfer under the Electronic Fund Transfer Act.
Some examples of transactions that may be The term “remittance” sometimes refers to
remittance transfers are cash-to-cash transfers, immigrants sending small amounts of money
cash-to-account transfers, international wire to their home countries. The Remittance
transfers, international ACH transfers, and certain Transfer Rule applies to a much broader set
prepaid card transactions. However, transfers in of transactions, including an immigrant’s
which a check is mailed abroad generally would not transfer of $100 to his mother in another
be remittance transfers since they are not electronic country or a consumer’s $5 million wire
transfers. transfer to purchase luxury real estate in
another country.
10 CONSUMER FINANCIAL PROTECTION BUREAU v 5.0
SMALL ENTITY COMPLIANCE GUIDE: REMITTANCE TRANSFERS
3.1.2 Senders
For there to be a remittance transfer, there has to be a sender. A sender is a consumer located in
a state (as defined in 12 CFR 1005.2(l)) who, primarily for personal, family, or household
purposes, requests that a remittance transfer provider send a remittance transfer to a designated
recipient. 12 CFR 1005.30(g). A transfer requested by a business is not a remittance transfer
because the business is not a sender (i.e., a consumer). Additionally, if a consumer requests a
transfer from a non-consumer account (e.g., a business account or an account held by a financial
institution under a bona fide trust agreement pursuant to 12 CFR 1005.2(b)(2)), then the
consumer is not a sender under 12 CFR 1005.30(g), even if the consumer is requesting the
transfer from an account that is used primarily for personal, family, or household purposes.
Thus, for example, transfers from sole proprietor accounts are not remittance transfers.
Whether a sender is in a state depends on whether or not the transfer is made from an account
in a state.
Account-based transfers: For a transfer made from To identify remittance transfers, one needs to
an account, whether a sender is located in a state identify which senders are located in the
depends on where the sender’s account is located, United States and which recipients are
not where the sender is physically located at the located in other countries. If it is not clear
time of the transfer. Comment 1005.30(g)-1. That how to determine a sender’s location,
is, if the account is located in a state, the remittance transfer providers can choose to
consumer’s physical location is irrelevant for provide disclosures for all international
purposes of determining whether there is a transfers.
remittance transfer. Transfers made from a
prepaid account (as defined in 12 CFR 1005.2(b)(3)) that is a payroll card account or a
government benefit account are transfers made from an account, but transfers from other
prepaid accounts are not. Comment 1005.30(g)-1.
Non-account-based transfers: When a transfer is not made from an account, and is requested
in person, whether the sender is located in a state is determined by the sender’s physical
presence. Comment 1005.30(g)-1. However, if the transfer is requested electronically or by
phone and is not from an account, a remittance transfer provider can rely on other information
provided by the sender, and any records associated with the sender that the remittance transfer
provider may have, to determine whether the sender is located in a state. For example, the
provider may have the sender’s address on file. If the provider has no other information, it can
rely on that record to determine the sender’s location. Transfers made from a prepaid account
(other than a prepaid account that is a payroll card account or a government benefit account)
are not transfers made from an account, and therefore, whether the sender is located in a state
depends on the location of the sender. Comment 1005.30(g)-1.
One should look to where funds will be received to determine whether there is a designated
recipient. A remittance transfer is received at a location in a foreign country if funds are to be
physically received at a location outside of any state. Comment 1005.30(c)-2.i. Funds are
considered to be physically received at a location outside of a state if the remittance transfer
provider, at the time of the transfer, has information indicating that the funds are to be received
in a foreign country. Comment 1005.30(c)-2.iii.
Transfers sent to accounts: For transfers to an account, funds are considered to be physically
received at a location outside of any state if the designated recipient’s account is located outside
of a state. Comment 1005.30(c)-2.ii. For example, the sender may transfer funds to a
designated recipient’s account in Brazil, even though the designated recipient may be in the
United States at the time of the transfer. In this case, there is a designated recipient, because
the recipient’s account is located in a foreign country. However, a transfer to a recipient’s
account in Florida would not be a remittance transfer for purposes of the Remittance Transfer
Rule, even if the recipient physically is located in France, because the designated recipient’s
account is located in a state. Transfers to a prepaid account that is a payroll card account or
government benefit account are transfers to an account. Comment 1005.30(c)-2.ii.
Transfers not sent to accounts: If a transfer is not sent to an account and the provider has
information that the designated recipient is located in a foreign country, then the funds are
considered to be physically received at a location outside of any state. Comment 1005.30(c)-
2.iii. Transfers to prepaid accounts (other than a prepaid account that is a payroll card account
or government benefit account) are not transfers sent to accounts. Comment 1005.30(c)-2.ii
noted above, transfers of $15 or less are exempt military bases located in other countries as
from the Remittance Transfer Rule. In addition, “states.” A transfer from the U.S. to an
certain transfers related to the purchase or sale of individual or an account located on a base in
securities or commodities are not covered by the a foreign country is not a remittance transfer
Rule. See 12 CFR 1005.30(e)(2) for more for purposes of the Remittance Transfer
Example Yes No
Consumer sends cash at a money transmitter
located in Colorado to a business recipient in Yes
France
Business sends cash at a money transmitter
No - business is not a
located in Colorado to a consumer recipient in
"sender"
France
Consumer wires money from a bank account in
Yes
California to a consumer bank account in Brazil
Consumer sends an ACH from a bank account in
Yes
California to make a mortgage payment in Brazil
Consumer sends cash at a money transmitter in No - recipient is not located
California to a consumer recipient in Colorado in a foreign country
Consumer buys a prepaid card in the U.S., and No - provider does not know
provider gives or mails the prepaid card to that whether consumer will send
consumer in the U.S. the card abroad
Consumer buys a prepaid card in the U.S., and the
provider mails the prepaid card directly to a Yes
recipient abroad
Consumer has a U.S.-based bank account, and the
consumer’s bank mails an ATM card associated No
with that U.S. account to a recipient abroad
Prior to July 21, 2020, the Remittance Transfer Rule set the normal course of business safe
harbor threshold at 100 remittance transfers annually. This means that prior to July 21, 2020, if
an entity provided 100 or fewer remittance transfers in the previous calendar year and provided
100 or fewer remittance transfers in the current calendar year, that entity was not considered by
the Rule to be providing remittance transfers in the normal course of its business (i.e., the entity
was not a remittance transfer provider under the Rule). For example, if an entity provided 95
remittance transfers in 2017, provided 95 remittance transfers in 2018 and provided 200
remittance transfers in 2019, the safe harbor applied to the entity’s remittance transfers in 2018,
as well as the entity’s first 100 transfers in 2019.
Effective July 21, 2020, the normal course of business safe harbor threshold increases to 500
remittance transfers annually. This means that effective July 21, 2020, if an entity provided 500
or fewer remittance transfers in the previous calendar year, and provides 500 or fewer
remittance transfers in the current calendar year, then that entity will not be considered to be
providing remittance transfers in the normal course of its business (i.e., the entity is not a
remittance transfer provider under the Remittance Transfer Rule). For example, if an entity
provided 400 remittance transfers in 2019, provided 400 remittances transfers in 2020, and
Effective July 21, 2020, an entity that did not qualify for the normal course of safe harbor when
the threshold was set at 100 transfers annually can also subsequently qualify for the normal
course of business safe harbor, as amended. If an entity that was providing more than 100
remittance transfers before July 21, 2020 determines that, as of a particular date, it will qualify
for the safe harbor in 2020, that entity can stop complying with the Remittance Transfer Rule
with respect to any remittance transfers for which payment is made after the date that the entity
determines it qualifies for the safe harbor. See 12 CFR 1005.30(f)(2)(iii). For example, if an
entity provided 400 remittance transfers in 2019 and determines that it will provide 500 or
fewer remittance transfers in 2020, as of July 21, 2020, the safe harbor applies to the entity for
the remainder of 2020. Additionally, the safe harbor applies to the entity’s first 500 remittance
transfers in 2021.
The requirements in Electronic Fund Transfer Act and the Remittance Transfer Rule, however,
continue to apply to any remittance transfers for which payment is made prior to the date that
the entity qualifies for the safe harbor. See comment 1005.30(f)-2.v. Additionally, qualifying
for the safe harbor does not excuse compliance with other applicable laws or regulations. For
example, if a remittance transfer is also an electronic fund transfer, any Regulation E
requirements that apply to electronic fund transfers continue to apply to that transfer.
An entity that exceeds the applicable threshold (i.e., either 100 or 500 remittance transfers) for
the safe harbor in a given year, could still be exempt from the Rule under a facts and
circumstances test. See comments 1005.30(f)-2.i and -2.iii. If an entity was eligible for the safe
harbor but then exceeds it in a given year, that entity has a reasonable period, up to six months,
to come into compliance with the Rule. See 12 CFR 1005.30(f)(2)(ii) and comments 1005.30(f)-
2.iii and -2.iv.A and C.
TABLE 2: DOES THE ENTITY QUALIFY FOR THE NORMAL COURSE OF BUSINESS SAFE HARBOR IN THE
REMITTANCE TRANSFER RULE?
Example Yes No
Bank sent 300 international consumer
wires in 2020 and 300 international No - 600 total remittance
consumer ACH payments in 2020 transfers in 2020*
Amounts disclosed generally must be exact, although in some cases, remittance transfer
providers can estimate amounts. See Section 4.2 for a discussion of when estimates are
permitted. Remittance transfer providers must provide the disclosures in English, and in any
other languages that they use to advertise, solicit, or market their services at a particular office,
or in which the transaction is conducted. Section 4.1.5 describes the language requirements for
disclosures.
Some information required in the disclosure may Remittance transfer providers should think
not be applicable to a particular remittance about whether the Remittance Transfer Rule
transfer. In these cases, remittance transfer allows for estimates of the disclosed
providers are not required to provide it. For amounts, and whether the disclosures need
example, if an exchange rate is not applied to the to be provided in other languages.
transaction (e.g., if the remittance transfer is sent
and received in dollars), then disclosure of an exchange rate does not need to be made.
Alternative disclosure procedures apply to remittance transfers scheduled before the date of
transfer, including recurring remittance transfers. The Remittance Transfer Rule describes
these procedures in 12 CFR 1005.36.
FIGURE 2: A – 30(A) – MODEL FORM FOR PREPAYMENT DISCLOSURES FOR REMITTANCE TRANSFERS
EXCHANGED INTO LOCAL CURRENCY
4 Exchange rate
If the sender has requested that the funds be
The exchange rate is the exchange rate applied to
received in another currency or has
the remittance transfer. See 12 CFR
represented that the funds will be received in
1005.31(b)(1)(iv). If an exchange rate applies to a
another currency, the exchange rate that will
remittance transfer, it must be disclosed. A
be applied to the transaction needs to be
remittance transfer provider may not disclose, for
disclosed, even if the remittance transfer
example, that an exchange rate is floating,
provider does not perform the currency
unknown, or to be determined. Comment
conversion. Remittance transfer providers
1005.31(b)(1)(iv)-1. Even if a remittance transfer
may be able to estimate the rate if an
provider does not set the exchange rate, it has to be
exception to the Rule applies.
disclosed. For example, if a remittance transfer
provider works with a correspondent bank that
does the currency conversion, the remittance transfer provider still must disclose the exchange
rate that applies to the remittance transfer. See comment 1005.31(b)(1)(iv)-3. However, the
remittance transfer provider may be able to estimate the exchange rate under an exception to
the Remittance Transfer Rule (see “Exceptions,” below in Section 4.2).
The disclosed exchange rate must be rounded from 2 to up to 4 decimal places, consistently for
each currency. 12 CFR 1005.31(b)(1)(iv); comment 1005.31(b)(1)(iv)-2. A remittance transfer
provider should only round the exchange rate on the disclosure to the sender. Any calculations
the remittance transfer provider or its software system makes must use the actual exchange rate.
A remittance transfer provider may rely on the sender’s representations to determine the
currency in which the transfer will be received. If the sender does not know the currency in
which the funds will be received, a remittance transfer provider may assume that the funds are
8 Disclaimers
Disclaimers may be required by the Remittance Transfer Rule depending on whether foreign
taxes or non-covered third-party fees (i.e., certain recipient institution fees such as fees the
recipient’s institution charges the recipient for receiving a transfer into an account) may apply to
the remittance transfer. 12 CFR 1005.31(b)(1)(viii); 12 CFR 1005.30(h)(2). For example, if the
remittance transfer provider does not know that the recipient country, province, or locality
where the remittance transfer is received does not levy a tax on remittance transfers, the
remittance transfer provider must include a disclaimer that additional foreign taxes may apply.
Similarly, if the remittance transfer is to be received in the account of the designated recipient,
the recipient institution is not the remittance transfer provider’s agent, and the provider does
not know that the recipient institution does not charge a fee for receiving a transfer, a disclaimer
must also be included. For both disclaimers, a remittance transfer provider may choose to
include the amounts of these non-covered third-party fees or foreign taxes, or an estimate of
these amounts, based on reasonable sources of information. See comments 1005.31(b)(1)(viii)-1
and -2.
Money Transmitter uses a network of agents to Fee imposed by the remittance transfer
send and receive remittance transfers. Agent provider. (Provider discloses $5 fee as
charges senders a $5 fee for each transfer. “Transfer Fees.”)
Foreign Bank (not agent of remittance transfer Non-covered third-party fees. (Provider;
provider) receives a remittance transfer of $100 may disclose $ 26 fee in disclaimer.)
into an account. It deducts $1 for processing the
transfer. It also charges the recipient a $25
incoming wire transfer fee.
4.1.2 Receipt
Remittance transfer providers must also give senders a receipt when the sender pays for the
remittance transfer. 12 CFR 1005.31(b)(2) and (e)(2). The information to be disclosed, as
applicable, is summarized in Figure 1 above, and described in more detail in Figure 3 below.
Figure 3 shows a model receipt (as set out in Appendix A-31 to Regulation E), followed by an
explanation of the numbered components.
2 Date of availability
The date of availability shows the date funds will For certain types of remittance transfers, it
be made available to the designated recipient. See may be difficult to know the exact date of
12 CFR 1005.31(b)(2)(ii). In some instances, it may availability. Remittance transfer providers
be difficult to determine the exact date on which a may want to consider what business partners
remittance transfer will be available to a designated may help in understanding the process times
recipient. A remittance transfer provider may for remittance transfers to different
choose to disclose the latest date on which the countries.
funds would be available, and can state that funds
“may be available sooner.” See comment
1005.31(b)(2)-1.
Timing: The timing is the same as the pre-payment Remittance transfer providers may want to
disclosure: when the sender requests the consider whether to provide a pre-payment
remittance transfer, but before he or she pays for disclosure and a receipt, or a combined
the transfer. 12 CFR 1005.31(e)(1). disclosure with proof of payment. The right
choice depends on a remittance transfer
Contents: The contents are the same as in the provider’s systems and consumer
contents of the receipt, except for the additional expectations.
proof of payment requirement. 12 CFR
1005.31(b)(3)(i).
Form
Disclosures must be clear and conspicuous. 12 CFR 1005.31(a)(1). Disclosures also generally
must be made in writing and in retainable form. 12 CFR 1005.31(a)(2). For purposes of the
disclosures required by 12 CFR 1005.31 and 12 CFR 1005.36 (e.g., pre-payment and receipt
disclosures), the Remittance Transfer Rule allows a remittance transfer provider to satisfy the
requirement to provide disclosures in writing by providing those disclosures via fax, although it
is not permissible to fax disclosures to a sender when that sender is present in the branch or
office. Comment 1005.31(a)(2)-5. The Rule permits disclosures to be provided on any size of
paper, as long as the disclosures are clear and conspicuous. For example, a disclosure may be
provided on a register receipt or on an 8.5” x 11” piece of paper. Comment 1005.31(a)(2)-2.
The Remittance Transfer Rule sets out specific form and retainability requirements with respect
to remittance transfer requests received electronically, as well as remittance transfers conducted
over the phone, by mobile application, or by text. See 12 CFR 1005.31(a) for more details.
Format
The Remittance Transfer Rule contains format requirements for information required in the
disclosures. 12 CFR 1005.31(c). For example, the Rule specifies that certain information
required in the pre-payment disclosure must be grouped together and in close proximity to one
another. In addition, the text generally must be in at least 8-point font. The required
information generally must be segregated from other information provided to the sender. A
remittance transfer provider can rely on the model form to satisfy these formatting
requirements. More information on format requirements can be found in 12 CFR 1005.31(c).
4.1.5 Language
Disclosures must always be made in English. 12 CFR 1005.31(g). For most transactions, a
remittance transfer provider also must provide a sender disclosures in any foreign languages
principally used to advertise, solicit, or market remittance transfer services at an office in which
the sender conducts a remittance transfer or asserts an error. 12 CFR 1005.31(g)(1)(i).
Alternatively, a remittance transfer provider can choose also to provide disclosures in the
If a remittance transfer provider provides disclosures in a language other than English and is
required to provide a receipt for a remittance transfer, the provider can choose to disclose the
Bureau’s website in the relevant language, if one exists (for example,
https://www.consumerfinance.gov/consumer-tools/sending-money/es/) instead of the
Bureau’s general website. See comment 1005.31(1)(b)-4.
Circumstances may arise where a remittance transfer provider may give disclosures solely in
English. For example, if the sender uses a language to conduct the transaction that is not one
principally used by the remittance transfer provider to advertise, solicit, or market at that office,
then the provider may give disclosures solely in English. Or, if a sender primarily uses English
to conduct the remittance transfer, providing disclosures solely in English would be sufficient
even though, for example, Spanish and English are principally used by the remittance transfer
provider to market remittance transfers.
Different language requirements apply for transactions conducted by phone, mobile application,
or text message. See 12 CFR 1005.31(g)(2).
Each exception is limited, so remittance transfer providers should make sure the remittance
transfer at issue qualifies before relying on an exception. Additionally, an exception may allow a
remittance transfer provider to estimate some disclosures but not others. If estimates are
1. Insured depository institution or credit union. The remittance transfer provider must
be an insured depository institution as defined in Section 3 of the Federal Deposit
Insurance Act (including an uninsured U.S. branch or agency of a foreign depository
institution) or an insured credit union as defined in Section 101 of the Federal Credit
Union Act.
2. Account-based transfers. The remittance transfer must be sent from the sender’s
account with the remittance transfer provider. However, the temporary exception does
not apply to remittance transfers sent from prepaid accounts, unless the prepaid account
is a payroll card account or a government benefit account.
3. Unable to determine exact amounts. The remittance transfer provider must be unable
to determine exact amounts for reasons outside of the provider’s control. For example, a
remittance transfer provider may not be able to determine the exchange rate if the rate is
set by the designated recipient’s institution, and the remittance transfer provider has no
correspondent relationship with that institution. Comment 1005.32(a)(1)-2) provides
guidance on other qualifying situations.
4. Time Period. This is a temporary exception that will expire on July 21, 2020. This
means that effective July 21, 2020, remittance transfer providers must disclose exact
amounts unless the transfer qualifies under the permanent exceptions described below.
If the temporary exception applies to a remittance transfer, the remittance transfer provider is
permitted to estimate, as applicable, the applicable exchange rate (12 CFR 1005.31(b)(1)(iv)),
transfer amount in the currency in which the funds will be received before any covered third-
party fees are taken out (12 CFR 1005.31(b)(1)(v)), covered third-party fees (12 CFR
1005.31(b)(1)(vi)), and the total to recipient in currency in which funds will be received (12 CFR
1005.31(b)(1)(vii)). The transfer amount in the sender’s currency (12 CFR 1005.31(b)(1)(i)),
1. Insured depository institution or credit union. The remittance transfer provider must
be an insured depository institution as defined in Section 3 of the Federal Deposit
Insurance Act (including an uninsured U.S. branch or agency of a foreign depository
institution) or an insured credit union as defined in Section 101 of the Federal Credit
Union Act.
2. The insured institution cannot determine the exact exchange rate for the remittance
transfer at the time it must provide the required disclosures. An insured institution
cannot determine the exact exchange rate if the exchange rate for the remittance transfer
is set by an entity other than: (a) the insured institution; (b) an institution that has a
correspondent relationship with the insured institution; (c) an insured institution’s
service provider; or (d) an insured institution’s agent. See comment 1005.32(b)(4)-1.
3. In the prior calendar year, the insured institution did not exceed the exception’s
threshold with regard to the particular country to which it is sending the remittance
transfer. The threshold is 1,000 or fewer remittance transfers to a particular country for
which the designated recipients of those transfers received funds in the particular
country’s local currency. For purposes of the 1000-transfer threshold, an insured
institution counts each remittance transfer made in the prior calendar year to the
particular country for which the designated recipient received funds in that country’s
local currency. The remittance transfer is counted regardless of whether the exchange
rate was estimated for the transfer. For example, consider an insured institution that
provided 700 remittance transfers to a country in the prior calendar year, when the
designated recipients of those transfers received funds in the country’s local currency
when the exchange rate was estimated for those transfers. In the same prior calendar
However, the insured institution does not count a remittance transfer sent to the
particular country if the designated recipient of the transfer did not receive funds in the
particular country’s local currency. See comment 1005.32(b)(4)-2.ii. For example, the
insured institution does not count a remittance transfer sent to Mexico if the funds were
received in U.S. dollars. The threshold is determined separately for each foreign country.
Insured institutions that exceed the threshold set forth in this exception in any given
year have a reasonable amount of time to come into compliance with the requirement to
provide exact disclosures (not to exceed the later of six months after the applicable
threshold is crossed or January 1 of the next year). For example, if a remittance transfer
provider exceeds the 1,000-transfer threshold on March 1, 2021, the insured institution
must comply with the requirement to provide the exact exchange rate (assuming another
permanent exception does not apply) by January 1, 2022. See comment 1005.32(b)(4)-3
for an additional example of how this transition period applies.
4. The remittance transfer is sent from the sender’s account with the insured institution.
A sender’s account includes a payroll card account or a government benefit account but
does not include any other prepaid account.
5. Time period. The remittance transfer is provided on or after July 21, 2020.
If this permanent exception applies to a remittance transfer, the insured institution can estimate
the required exchange rate disclosures. Additionally, if an insured institution is permitted to
provide an estimated exchange rate for a remittance transfer under this permanent exception,
per 12 CFR 1005.32(b)(4)(ii), the insured institution can provide estimates for the following
disclosures if the estimated exchange rate affects the amount of the disclosure:
The amount that will be transferred to the designated recipient disclosed in the currency that
the designated recipient will receive, inclusive of covered third-party fees (i.e., “Transfer
Amount” as described in 12 CFR 1005.31(b)(1)(v));
The amount of any covered third-party fees disclosed in the currency that the designated
recipient will receive (i.e., “Other Fees” as described in 12 CFR 1005.31(b)(1)(vi)); and
1. Insured depository institution or credit union. The remittance transfer provider must
be an insured depository institution as defined in Section 3 of the Federal Deposit
Insurance Act (including an uninsured U.S. branch or agency of a foreign depository
institution) or an insured credit union as defined in Section 101 of the Federal Credit
Union Act.
2. The insured institution cannot determine the exact covered third-party fees required to
be disclosed for the remittance transfer at the time it must provide applicable
disclosures. An insured institution cannot determine the exact covered third-party fees
when all of the following conditions are met: (a) the insured institution does not have a
correspondent relationship with the designated recipient’s institution; (b) the designated
recipient’s institution does not act as the insured institution’s agent; (c) the insured
institution does not have an agreement with the designated recipient’s institution with
respect to the imposition of covered third-party fees on the remittance transfer; and (d)
the insured institution does not know at the time the disclosures are given that the only
intermediary financial institutions that will impose covered third-party fees on the
transfer are those institutions that have a correspondent relationship with or act as an
agent for the insured institution, or have otherwise agreed upon the covered third-party
fees with the insured institution. See comment 1005.32(b)(5)-1.
3. Either (a) the insured institution made 500 or fewer remittance transfers to the
designated recipient’s institution in the prior calendar year or (b) a United States
federal statute or regulation prohibits the insured institution from being able to
determine the exact covered third-party fees required to be disclosed for that
remittance transfer. Regarding the 500-transfer threshold, the insured institution
Insured institutions that did not exceed the 500-transfer threshold in the prior calendar
year but exceed the threshold in the current calendar year have a reasonable amount of
time after exceeding the 500-transfer threshold to begin providing exact covered third-
party fees and other covered third-party fee dependent disclosures (assuming a United
States federal statute or regulation does not prohibit the insured institution from being
able to determine the exact covered third-party fees or another exception does not
apply). The reasonable amount of time must not exceed the later of six months after
exceeding the 500-transfer threshold in the current calendar year or January 1 of the
next calendar year. See comment 1005.32(b)(5)-5 for an example of how this transition
period applies.
Even if an insured institution exceeded the The Bureau has no evidence that any United
500-transfer threshold in the prior calendar States federal statute or regulation prohibits
year, the insured institution satisfies this an insured institution from being able to
condition of the exception for a remittance determine exact covered third-party fees for
transfer if a United States federal statute or
regulation prohibits the insured institution from being able to determine the exact
covered third-party fees for that remittance transfer. Comment 1005.32(b)(5)-4. A
United States federal statute or regulation prohibits the insured institution from being
able to determine the exact covered third-party fees for the remittance transfer if the
federal statute or regulation: (a) prohibits the insured institution from disclosing exact
covered third-party fees in disclosures for transfers to a designated recipient’s
4. The remittance transfer is sent from the sender’s account with the insured institution.
A sender’s account includes a payroll card account or a government benefit account but
does not include any other prepaid account.
5. Time period. The remittance transfer is provided on or after July 21, 2020.
If this permanent exception applies, an insured institution may provide estimates for covered
third-party fees required to be disclosed pursuant to 12 CFR 1005.31(b)(1)(vi). The insured
institution may also estimate the “Total to Recipient” required to be disclosed pursuant to 12
CFR 1005.31(b)(1)(vii) if the insured institution is permitted to estimate the covered third-party
fees under the new exception and the estimated covered third-party fees affect the amount
disclosed as the “Total to Recipient.”
1. Unable to determine exact amounts. To rely upon this exception, a remittance transfer
provider must be unable to determine exact amounts due to either (i) the laws of the
recipient country or (ii) the method by which transactions are made in the recipient
country. 12 CFR 1005.32(b)(1)(i). The first may occur, for example, if the recipient
country prohibits the remittance transfer provider from setting the exchange rate. The
second primarily addresses international ACH transfers where the exchange rate is set
based on an agreement between the U.S. and a foreign government, such as the country’s
central bank.
2. Safe harbor countries list. The Bureau has published a safe harbor list of countries that
a remittance transfer provider can rely on unless it has information that it is possible to
determine the exact disclosure amounts. If a remittance transfer provider is sending a
remittance transfer to any of those countries, the provider can estimate certain
disclosures for the remittance transfer. See 12 CFR 1005.32(b)(1)(ii). The current
The Remittance Transfer Rule also permits remittance transfer providers to make their
own determinations that the laws of other recipient countries, not on the safe harbor list,
do not permit a determination of exact amounts. In which case, a remittance transfer
provider may use estimates. Comment 1005.32(b)(1)-5.
The Bureau welcomes input on whether it has included the right countries in the list, or
about other countries or other areas that the Bureau should add to the list. Feedback
and supporting legal authority, in English, should be emailed or mailed to the Bureau.
3. Any remittance transfer provider is eligible for this exception. While the temporary
exception is available only to insured institutions, the permanent exception may apply to
any remittance transfer provider.
4. Time Period. This exception is permanent, but the countries on the safe harbor
countries list may change.
If this exception applies, a remittance transfer provider can estimate, as applicable, the
applicable exchange rate (12 CFR 1005.31(b)(1)(iv)), transfer amount in the currency in which
the funds will be received before any covered third-party fees are taken out (12 CFR
1005.31(b)(1)(v)), covered third-party fees (12 CFR 1005.31(b)(1)(vi)), and the total to recipient
in currency in which funds will be received (12 CFR 1005.31(b)(1)(vii)). The transfer amount in
the sender’s currency (12 CFR 1005.31(b)(1)(i)), front-end fees and taxes (12 CFR
1005.31(b)(1)(ii)), and total amount of the transaction (12 CFR 1005.31(b)(1)(iii)) must always
be the exact amounts.
1. Cancellation notice.
Senders can request cancellation orally or in writing. These requests can be made with the
remittance transfer provider or their agent. See 12 CFR 1005.34(a) and comment 1005.31(a)-4.
2. Procedures.
A remittance transfer provider must refund the total amount of the remittance transfer to the
sender within three business days of receiving the sender’s cancellation request. This refund
must include any fees and, if not prohibited by law, any taxes imposed in connection with the
transfer. See 12 CFR 1005.34(b) and comment 1005.34(b)-2.
5.2.2 Errors
The Remittance Transfer Rule describes what an error is for purposes of the error resolution
requirements. 12 CFR 1005.33(a). An error means:
1. An incorrect amount paid by a sender in connection with the remittance transfer, such as
being charged more than the total shown on the receipt;
3. The failure to make available to a designated recipient the amount of currency disclosed
to the sender, unless:
a. The disclosure stated an estimate and the difference results from application of the
actual exchange rate, fees, and taxes, rather than any estimated amounts;
b. The failure resulted from extraordinary circumstances outside the remittance transfer
provider’s control that could not have been reasonably anticipated; or
c. The difference results from the application of non-covered third-party fees or taxes
collected on the remittance transfer by an entity other than the remittance transfer
provider and the provider provided the required disclosure.
4. The failure to make funds available by the disclosed date of availability (including the
non-delivery of funds), unless the failure resulted from:
c. The remittance transfer being made with fraudulent intent by the sender or any person
acting in concert with the sender (e.g., “friendly fraud”); or
Notification
A remittance transfer provider’s obligation to investigate an error is triggered when the sender
notifies the provider or its agent about the error. See 12 CFR 1005.33(b). This notification
generally must:
Investigation period
Once a notice of an error is received, the remittance transfer provider must promptly
investigate. The remittance transfer provider must determine whether an error occurred within
90 days of receiving the notice of error. 12 CFR 1005.33(c)(1).
If an error occurred: The remittance transfer provider can report the results orally or in
writing. See comment 1005.33(c)(1)-1.
If no error has occurred: The remittance transfer provider must give the sender a written
explanation of the results of the investigation and notify the sender that he or she has the right
to request any documentation relied upon in making the determination. 12 CFR 1005.33(d)(1).
The remittance transfer provider must also provide a written explanation if it determines that an
error occurred but the error is of a different type or a different amount than the error that the
sender reported. 12 CFR 1005.33(d)(1).
Senders’ remedies
The remittance transfer provider must correct an error within one business day of receiving the
sender’s choice of remedy, or as soon as reasonably practical. 12 CFR 1005.33(c)(2).
The available remedies depend on the type of error. See 12 CFR 1005.33(c)(2).
General remedies. Generally, if an error occurs for The error resolution requirements may
reasons other than a mistake made by the sender, trigger a change in risk management
the sender has two options: refund or redelivery. procedures.
12 CFR 1005.33(c)(2)(i). The refund would be
made of the amount of funds that was not properly
transmitted or delivered to the designated recipient. Alternatively, the sender can require
redelivery of the amount appropriate to resolve the error at no additional cost to the sender.
The amount appropriate to resolve the error is the specific amount of transferred funds that
should have been received, had there been no error. Comment 1005.33(c)-5. For example, in a
dollar-to-dollar transfer, if the remittance transfer provider disclosed that a recipient would
receive $200, but the designated recipient only received $150, the sender could choose either a
refund of $50 or could choose to have the $50 redelivered at no additional cost to the sender.
Remedies for failure to make funds available by the date of availability. If this is the error and
the funds have not been picked up yet, the sender can choose to receive a refund or request
redelivery of the amount appropriate to resolve the error. 12 CFR 1005.33(c)(2)(ii). These
funds must be redelivered without additional cost. If, however, the funds had already been
picked up by the recipient, no additional amounts are required to resolve the error after the
Regardless of whether the refund or redelivery remedy is chosen, the remittance transfer
provider must also refund any fees and taxes imposed on the initial transfer. 12 CFR
1005.33(c)(2)(ii)(B). This refund remedy also applies if all the funds have been picked up, but
were not ready by the disclosed date of availability. This refund includes covered third-party
fees and taxes charged by someone other than the remittance transfer provider (unless a tax
refund is prohibited by law).
Remedies for errors that occur because a sender provided incorrect or insufficient
information. If an error occurred because the sender provided incorrect or insufficient
information, the Remittance Transfer Rule requires the remittance transfer provider to refund
the principal amount of the remittance transfer to the sender, unless the sender elects to have
the transfer resent as a new remittance transfer before the refund is sent. 12 CFR
1005.33(c)(2)(iii). The remittance transfer provider may deduct from the transfer amount
refunded or applied towards a new remittance transfer any covered third-party fees actually
imposed 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. The remittance transfer
provider may not deduct its own fees from the amount refunded or applied to a new transfer.