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Reg E Remittance Transfer Receipt-Consumers

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Question: 
Is the Regulation E remittance transfer receipt required for regular consumers or does this also pertain to "business" consumers? I have a bank audit I'm working on and they have more than 100 foreign wires per year but the majority are for business accounts. Also, are there other methods of disclosure for this portion of Reg E such as monthly statement?
Answer: 

Last question first. No. These are transaction-based disclosures because foreign remittances are so often "one-off" events. The rule covers not only banks but also all the little airport kiosks and C-store businesses that wire funds overseas for individuals. Note, however, that for certain remittance transfers requested and authorized entirely by telephone, the remittance transfer provider (if it's a financial institution holding the account used to pay for the transaction) has the option of sending the receipt either by mail the business day after the payment for the transfer or with the statement for the deposit account (if it will be issued within 30 days).

First question: Subpart B of Regulation E covers only transfers of funds completed for senders who are individuals making the transfers for personal, family or household purposes. The regulation allows a bank that holds an account from which funds will be debited to pay for a transfer to "make the call" on the purpose of the transaction (consumer or business) based on the account type. So if the transaction will be paid for from John Jones's sole proprietorship account, the remittance can be considered a business-purpose transaction, regardless of John Jones's true purpose for the payment. See comment 30(g)-3 to Regulation E.

As for transfers being funded from a consumer-purpose account, the consumer's purpose for the remittance is controlling. If the consumer indicates the transaction is for a business purpose, it can be treated as such, and not be subject to the rule. But if the funds are coming from a consumer account and the consumer doesn't indicate the purpose of the remittance, the bank must consider it a consumer-purpose remittance, and apply the rule. See comment 30(g)-2.

First published on 10/30/2016

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