We have customers that send requests for remittance transfers by mail. Once we get these we call the customer to confirm it was them that sent in the wire form. This allows us to treat it as a remittance transfer request by phone and we can read the pre-payment disclosure to them over the phone, then send the receipt through mail.

If a customer lives overseas, however, it can be difficult to contact them by phone for the disclosure. From what I have read, I don't believe that the reg allows the transfer to be started by phone and then the disclosures given by email?

In short, a disclosure by email can only be made if the wire was requested by email – correct? What is your take on the Reg?

You've read the rule correctly. Only the prepayment disclosure may be made electronically, and only if the request is received electronically. To provide the receipt by email, you'd have to conform to E-SIGN rules.

Our FI allows acceptance of consumer remittance transfers by person, telephone, fax, in writing and by email. We perform a call back to confirm the validity of the request on all wire transfers that are not initiated in person. During the call back, we also provide oral pre-payment disclosures. If accepted, we mail a written receipt to the customer's address.

We recently had independant audit a few months ago and did not receive any recommendations in regards to disclosures. However, the more I read through this, the less confident I am that we are compliant to the disclosure requirements. Did our auditor miss something here?

By initiating a call-back, you are making the request conform to the rules covering remittances requested entirely by telephone, which permits oral pre-payment disclosures. You follow up with a written receipt, as also required.

Based solely on what you have said and without reviewing any actual disclosures, I think the practice is fine.

Thank you so much for your quick response.