Subpart B Remittance Transfers – What is a remittance transfer?

Compliance > Regulation E - EFTA
Q:  What is a remittance transfer? 
A:  Generally, consumers in the United States who send money electronically to consumers or business recipients in foreign countries are sending remittance transfers.  Although you may traditionally think of remittances as money sent by immigrants to family members abroad, many other international fund transfers qualify as remittance transfers under the rule.  For example, wire transfers of funds to make tuition payments in foreign countries may be remittance transfers.  There is also no cap in the rule on the size of the transfer that may be a remittance transfer.  As long as the transaction is more than $15, the transfer might be covered by the rule.
Remittance transfer (§ 1005.30(e))
A remittance transfer is an electronic transfer of funds requested by a sender to a designated recipient that is sent by a remittance transfer provider.  A transaction can be a remittance transfer:
  • whether or not the sender has an account with the remittance transfer provider; and
  • whether or not the transfer is an electronic fund transfer under the Electronic Fund Transfer Act.
Some examples of transactions that may be remittance transfers are cash-to-cash transfers, cash-to-account transfers, international wire transfers, international automated clearing house (ACH) transfers, and certain prepaid card transactions.  However, transfers in which a check is mailed abroad generally would not be remittance transfers since they are not electronic transfers.
This is addressed in the CFPB "International Fund Transfers" guide, which can be found here: 

Add Feedback