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#1749643 - 10/16/12 07:00 PM Re: Remittance Transfer Rule-Intl. Wires Kay
Christine81 Offline
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I found that odd also

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Remittance Transfer Rule
#1749649 - 10/16/12 07:08 PM Re: Remittance Transfer Rule-Intl. Wires Kay
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laugh laugh
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#1749650 - 10/16/12 07:08 PM Re: Remittance Transfer Rule-Intl. Wires Kay
Kathleen O. Blanchard Offline

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The regulators always make those disclaimers.
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#1749653 - 10/16/12 07:10 PM Re: Remittance Transfer Rule-Intl. Wires Kathleen O. Blanchard
Cornfed Turtle Offline
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"...Somewhere in Middle Americ...
Is it just me, or does this feel like the GFE of wires?

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#1749730 - 10/16/12 09:28 PM Re: Remittance Transfer Rule-Intl. Wires Cornfed Turtle
CrookedVulture Offline
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Did I hear correctly that they are either excluding or are considering excluding programs such as Directo a Mexico from the remittance transfer requirements?

Also, it was somewhat encouraging to hear that the error rules regarding senders who've given the provider incorrect information (e.g. incorrect account number) may be revised or are at a minimum going to get a second look.

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#1749739 - 10/16/12 09:43 PM Re: Remittance Transfer Rule-Intl. Wires Kay
zitch70 Offline
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Edinburg, Texas
We have decided to stop doing RMTs begining next year. We do over 100 per month. The risk is too great unless they change the error when providers have given incorrect information. One wire where we have to refund will wipe out all income received.

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#1749901 - 10/17/12 04:17 PM Re: Remittance Transfer Rule-Intl. Wires Kay
Compliance504 Offline
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I need to make sure I explain this correctly to Mgmt....At the rate we are going we will be close to the 100 mark for this year....

If we decide that we are no longer going to offer this service BUT do hit 101 this year, we will not be able to ANY RMT in 2013 unless we comply with the reg....even if we only do a few in 2013 to accommodate some of our customers....we would have to comply with the reg for those few.....because we did 101 in 2012...

Then if we don't do any in 2013....we could accommodate some of customers in 2014....

Is that correct?

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#1750139 - 10/18/12 03:06 AM Re: Remittance Transfer Rule-Intl. Wires Kay
John Burnett Offline
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If you hit 101 in 2012 you will have to comply with the rule for any subpart B transfers you handle starting on 2/7/13, and counting any that you do for ALL of 2013 toward the 100 level for 2013. If you count 100 or fewer in 2013, the safe harbor rule would theoretically get you off the hook for 2014 until you hit 101 for that year, and then a 6 month grace period on compliance would apply. But the Bureau has said that it will be watching for providers trying to "game the system" to avoid having to comply.
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#1750182 - 10/18/12 01:17 PM Re: Remittance Transfer Rule-Intl. Wires Kay
SWFLBanker Offline
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I also found that to be odd. They won't interpret their own rules. We actually chuckled over that. So if you use their manual for compliance and the Feds have a problem you can't rely on the information for basis of you policy and procedures?

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#1750192 - 10/18/12 01:24 PM Re: Remittance Transfer Rule-Intl. Wires Kay
Kathleen O. Blanchard Offline

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Any presentation by any regulator, even in person at a conference, will have such a disclaimer and will refer you to the law, reg and commentary.
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#1750224 - 10/18/12 02:05 PM Re: Remittance Transfer Rule-Intl. Wires Kathleen O. Blanchard
Cornfed Turtle Offline
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"...Somewhere in Middle Americ...
We invited them in-house to specifically help us with a troublesome reg. We worked together on examples of how to interpret the reg and they still spent two slides telling us it wasn't an interpretation of the Fed. And none of our examples were memorialized in slides either. It was good training, but certainly couldn't be used to take on the next EIC.

Overall, I liked the CFPB webinar though.

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#1750226 - 10/18/12 02:11 PM Re: Remittance Transfer Rule-Intl. Wires Kay
Kathleen O. Blanchard Offline

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Even in an exam, they can change their minds the next time through!
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#1750279 - 10/18/12 03:25 PM Re: Remittance Transfer Rule-Intl. Wires Kay
Soccer Offline
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We just received a notice from our wire transmiter and I'm confused about something in there. It states "consider converting the wires first to the beneficiary's local currency" I'm not sure how that is supposed to help?
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#1750282 - 10/18/12 03:30 PM Re: Remittance Transfer Rule-Intl. Wires Kay
ejommen Offline
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On the banks of the Rio Grande
You'll have the exchange rate that you need for the disclosure.

And you will have more control over the transaction, making your disclosures more accurate and limiting your exposure to loss under the dispute resolution portion (when the amount received isn't what you disclosed).
Last edited by ejommen; 10/18/12 03:41 PM.
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#1750359 - 10/18/12 05:19 PM Re: Remittance Transfer Rule-Intl. Wires Kay
Slowpanic Offline
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We do very few consumer foreign wire transfers so we will be under the safe harbor, but do I need to have a formal policy stating this? Or do I just need to write up something that states that we are under the limit and will continue to monitor the amount of transactions conducted?

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#1750362 - 10/18/12 05:22 PM Re: Remittance Transfer Rule-Intl. Wires Kay
Doug Hendrickson Offline
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We also are exempted due to the 'de minimis' of 100 transactions.

I've sent a memo to senior management advising them of that fact and will incorporate a 'blurb' in the monthly compliance report to the Board. In addition, I'll add an annual procedure at year-end to calculate the number of 'remittance transfers' done for the year to see if the status has changed. I don't believe a formal policy is necessary.
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#1750365 - 10/18/12 05:26 PM Re: Remittance Transfer Rule-Intl. Wires Kay
Slowpanic Offline
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Thank you Doug. That is what I was hoping to hear! I will add it to my monthly report.

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#1750370 - 10/18/12 05:29 PM Re: Remittance Transfer Rule-Intl. Wires Kay
Kathleen O. Blanchard Offline

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As Doug is doing, I would definitely document the calculation that shows you are under the limit.
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#1750373 - 10/18/12 05:32 PM Re: Remittance Transfer Rule-Intl. Wires Kay
BrianC Offline
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One thing to consider, Doug is that the 6-month clock for required compliance starts ticking immediately upon reaching the 100 threshold during the year. If there is a sudden increase in your remittance transfers and you reach 100 in May 2013, but don't realize it until December 2013, you will have been put of compliance between November 2013 and the time that you are able to begin complying with the requirements. For that reason, I'm going to be calculating my remittance transfer total at least quarterly.
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#1750375 - 10/18/12 05:38 PM Re: Remittance Transfer Rule-Intl. Wires BrianC
Doug Hendrickson Offline
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Good point! It might be best to schedule mine quarterly or semi-annually just to keep on top of it.
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#1750378 - 10/18/12 05:42 PM Re: Remittance Transfer Rule-Intl. Wires Kay
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One solution to this mess might be to have any of your clients that do send frequent transfers to the same people, open an account at your bank with that person as co-owner, and provide the person overseas a debit, ATM or check access to the account. Since the account would be located in teh US, wouldn't that remove the transfers from the rules?

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#1750953 - 10/19/12 09:02 PM Re: Remittance Transfer Rule-Intl. Wires Kay
BrianC Offline
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Illinois
Those would not be remittance transfers, ture. I'm going to remove my Reg E hat and put on my BSA hat...

How do we want to go about gathering CIP information for the foreign individual, monitor the account, etc.? I think I'll stick to counting transfers. Lower risk IMHO.
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#1751161 - 10/22/12 06:54 PM Re: Remittance Transfer Rule-Intl. Wires Kay
YHWB Offline
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I agree that you would probably not want to handle all situations like this, but it does seem like there could be situations, especially in cases of well known clients (e.g. a student studying broad, a private banking client's mother living overseas) where this could be sold as helping the customer reduce fees, and reduce the number of transfers to "count", especially until the detials of this regulation are figured out.

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#1751397 - 10/23/12 02:22 PM Re: Remittance Transfer Rule-Intl. Wires Kay
John Burnett Offline
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I like the use of a debit card tied back to a U.S. account on which the individual overseas is a joint owner or authorized cardholder because that individual may find that it's not convenient to set up a local bank account, and may not always know where he or she will be traveling. The cost is certainly manageable (a local ATM fee and the exchange rate) and there's no need to arrange for individual transfers. The individual overseas would have to have reasonable spending habits before I'd want to be the one replenishing the account, of course, but ...
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#1751653 - 10/23/12 09:50 PM Re: Remittance Transfer Rule-Intl. Wires Kay
Still Smiling Offline
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Can you limit remittance transfer services to persons with existing accounts that are in good standing and have been open at least one year?

Can you offer only in person transfers?
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