International Remittance Rule Changes
On October 28, 2013, the provisions of Section 1073 of the Dodd-Frank Act take effect, the purpose of which is to increase protections for consumers who transfer funds internationally. Under the resulting rules, providers such as credit unions will be required to disclose additional information including exchange rates, fees, applicable taxes and funds availability.
- Full fee disclosure at the time of origination, including FX conversion rate, fees imposed by downstream institutions, all applicable taxes and any related transaction fees
- Final amount of funds to be received by the recipient, taking into account all fees and taxes
- Date of funds availability to the recipient
- Right of the sender to cancel transaction up to 30 minutes after its submission
- Disclosure regarding resolution of inquiries, complaints and returns
- Rights and recourse for errors
As with many new regulations, the international remittance requirements create operational and logistical hurdles for credit unions and other providers of these services. In this case, the compliance challenge is exacerbated by the need for cooperation from international institutions that are not subject to the same U.S. law.
Fortunately, Catalyst Corporate has a solution: an upgraded international remittance module in TranZact, Training, and communications to members.
Use the links at the right to navigate through this Dodd-Frank Act section.
For more information, please contact Member Services at 800.442.5763, option 1.