NCUA Releases Regulatory Alert to Remind Credit Unions of Remittance Transfer Requirements

The National Credit Union Administration (NCUA) recently released Regulatory Alert 13-RA-06 which reminds credit unions of recent major changes to the Consumer Financial Protection Bureau’s (CFPB) remittance transfer rule. The regulatory alert also serves to remind credit unions of the Oct. 28, 2013, compliance date.

“If your credit union sends money to foreign countries on behalf of members or non-members within your field of membership, you may have to comply with the amended remittance transfer provisions under Regulation E (the Electronic Fund Transfer Act),” the agency said in the alert.

The final rule requires credit unions that provide international wire/ACH transfers in excess of 100 transfers per year to provide their members with prepayment and receipt disclosures, which must list in the sender’s currency, and as separate line items:

  • Transfer amount to be sent to a designated recipient.
  • Transfer fees (including any up-front fees) you impose or pass onto the sender.
  • Taxes (including any up-front taxes) you collect or pass onto the sender.
  • Total transaction amount (sum of the transfer amount and up-front transfer fees and taxes).

The prepayment and receipt disclosures may be combined.

In addition, credit unions must establish error resolution procedures, which must include:

  • Give the sender at least 30 minutes to cancel a transfer after making payment. Senders can get their money back, at no additional cost, within three business days of you receiving the cancellation notice.
  • Investigate in a timely manner if the sender reports a problem with a transfer. For certain errors, the sender can get a refund or have the transfer re-sent without charge if the money did not arrive as promised.
  • Take responsibility for mistakes made by agents or third-party service providers who work for you in completing international money transfers.
  • Follow specific disclosure timing, content and cancellation provisions for transfers that senders schedule in advance, and for transfers that are scheduled to recur on a regular basis.

The NCUA suggests credit unions that offer remittance transfer services to their members take several actions to help ensure they implement the regulatory requirements prior to the rule’s effective date. Those actions include:

  • Become familiar with the new remittance transfer requirements.
  • Track the number of international wire transfers and international ACH transfers your credit union completes each year.
  • Modify your data processing systems, as necessary, to generate proper terms and content for the required disclosures.
  • Develop and maintain written policies and procedures to ensure compliance with the error resolution provisions. Your policies and procedures should specifically address:
    • A sender’s notice of error (oral and written).
    • A request for additional information or clarification.
    • The time limits for investigation, reporting results, and correcting an error (if one occurred).
    • A sender’s request for documentation you used to make a decision.
    • Records retention related to error investigations. (Please note, a remittance transfer provider must retain its records for at least two years from the date an error notice is received or corrective action is required.)

The NCUA alert also links to the full text of the final rule, and CFPB compliance resources.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, NCUA.