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Joined: Oct 2000
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There is nothing in the regulation or commentary to prevent it. Here are a couple of "what ifs": - A financial institution makes 90 consumer foreign remittance transfers in 2013. In 2014, it makes its 101st such transfer on September 5, 2014. It would not be considered a remittance transfer provider during any portion of 2014 prior to making the 101st transfer. Beginning with the 101st transfer, it will be a remittance transfer provider if it provides remittance transfer services in the ordinary course of business. But it won't have to comply with subpart B of Regulation E until March 5, 2015 (6 months after becoming a remittance transfer provider), and then only if it continues to offer remittance transfers in the ordinary course of business. Let's assume that in 2015, it continues to offer the transfers, and complies with the regulation starting March 5. But at the end of 2015, it determines that for the entire year, it completed only 75 foreign remittance transfers for individual senders for consumer purposes. Beginning January 1, 2016, and continuing until it reaches a 101st remittance transfer, it will not be considered a remittance transfer provider per the definition.
- Same facts as #1, but on March 1, 2015, the FI stops offering remittance transfer services in the ordinary course of business. It stops advertising the service, but once or twice a month it handles a transaction for a couple of consumer customers who have significant other (business and trust) balances. Because the FI is no longer offering the service in the ordinary course of business, it is no longer a remittance transfer provider under the definition, and won't have to comply with the rule.
- Same facts as #1. Beginning March 5, 2015, the FI starts complying with the rule, and continues to do so through the end of the year. It determines at year-end it completed only 75 transfers for the entire year and decides to stop offering the service in the ordinary course of business, effective March 31, 2016. Because it did fewer than 100 transactions in 2015, the FI will not be a remittance transfer provider in 2016 unless it completes a 101st transaction. When March 31 arrives, it has completed only 27 transactions for the year. As of April 1, 2016, it stops offering the service in the ordinary course of business, as planned. Unless it starts again to offer the service in the ordinary course of business, it will not be a remittance transfer provider for any period in 2016 or in later years.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8
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