All credit unions that initiate cross-border wires, ACHs, or other electronic transfers of funds (or allow their members to initiate such transactions through an online bill payment system) need to take a close look at the new “remittance transfer” regulations that CFPB has added to Regulation E.
If a credit union is doing enough of these transactions to trigger coverage under the new regulation, there are several new regulatory requirements that are just about to take effect, including:
- New rights of cancellation;
- New disclosure requirements;
- New rules regarding who is liable for unauthorized transfers;
- New error-resolution rights and procedures;
- New rights to request information about such transactions;
- New record-retention requirements.
The League has put together an operations release to help you understand the new regulations, including what types of transactions are covered; whether your credit union is required to comply with the regulations; and what the new regulatory requirements are. In addition, it includes the full text of the new regulations, and provides hyperlinks to the model forms and other helpful resources.
To download the full operations release, log-in to the League’s online compliance manual (InfoSight) (http://va.leagueinfosight.com/). Click on the “VACUL Publications & Guidance” subheading, and follow the instructions. If you received this operations release electronically (and if you have your InfoSight log-in information readily available), click here.