Dodd Frank and Money Transmitters: 10 Key Aspects of Regulation E

Author: Iris Aimee Pinedo, CAMS-Audit

On January 20, 2012, The Consumer Financial Protection Bureau (CFPB) released its long-anticipated rules governing certain electronic money transfers or “remittance transfers.” Subpart B to Regulation E of the Dodd Frank Wall Street Reform and Consumer Protection Act1 establishes a new regulatory framework governing cross-border electronic transfer payments originated by US consumers. The new “remittance transfer” rules took effect on October 28, 2013 imposing—for the first time—federally mandated disclosure, error resolution and cancellation rights on remittance transfer providers, which can include both financial and non-financial institutions. The CFPB believes that the new remittance transfer rules will create new protections and improve predictability for consumers who send “remittance transfers” from the United States to individuals and businesses in foreign countries.

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