(a) Temporary exception for
insured institutions.
(1) General. For disclosures described
in sections 1005.31(b)(1) through (3) and 1005.36(a)(1) and (2), estimates
may be provided in accordance with paragraph (c) of this section for
the amounts required to be disclosed under section 1005.31(b)(1)(iv)
through (vii), if:
(i) A remittance transfer provider cannot determine the exact amounts
for reasons beyond its control;
(ii) A remittance transfer provider is an insured institution; and
(iii) The remittance transfer is
sent from the sender’s account with the institution; provided however,
for the purposes of this paragraph, a sender’s account does not include
a prepaid account, unless the prepaid account is a payroll card account
or a government benefit account.
(2) Sunset date. Paragraph (a)(1) of this section expires on July 21, 2020.
(3) Insured institution. For purposes of this section, the term “insured institution” means
insured depository institutions (which includes uninsured U.S. branches
and agencies of foreign depository institutions) as defined in section
3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), and insured
credit unions as defined in section 101 of the Federal Credit Union
Act (12 U.S.C. 1752).
(b) Permanent exceptions.
(1) Permanent exception for transfers to
certain countries.
(i) General. For disclosures described in sections 1005.31(b)(1) through (b)(3)
and 1005.36(a)(1) and (a)(2), estimates may be provided for transfers
to certain countries in accordance with paragraph (c) of this section
for the amounts required to be disclosed under section 1005.31(b)(1)(iv)
through (b)(1)(vii), if a remittance transfer provider cannot determine
the exact amounts when the disclosure is required because:
(A) The laws of the recipient country
do not permit such a determination, or
(B) The method by which transactions are made in the recipient country
does not permit such determination.
(ii) Safe
harbor. A remittance transfer provider may rely on the list of
countries published by the Bureau to determine whether estimates may
be provided under paragraph (b)(1) of this section, unless the provider
has information that a country’s laws or the method by which transactions
are conducted in that country permits a determination of the exact
disclosure amount.
(2) Permanent exception for transfers scheduled
before the date of transfer.
(i) Except as provided in paragraph
(b)(2)(ii) of this section, for disclosures described in sections
1005.36(a)(1)(i) and (a)(2)(i), estimates may be provided in accordance
with paragraph (d) of this section for the amounts to be disclosed
under sections 1005.31(b)(1)(iv) through (vii) if the remittance transfer
is scheduled by a sender five or more business days before the date
of the transfer. In addition, if, at the time the sender schedules
such a transfer, the provider agrees to a sender’s request to fix
the amount to be transferred in the currency in which the remittance
transfer will be received and not the currency in which it is funded,
estimates may also be provided for the amounts to be disclosed under
sections 1005.31(b)(1)(i) through (iii), except as provided in paragraph
(b)(2)(iii) of this section.
(ii) Covered third-party fees described in section 1005.31(b)(1)(vi)
may be estimated under paragraph (b)(2)(i) of this section only if
the exchange rate is also estimated under paragraph (b)(2)(i) of this
section and the estimated exchange rate affects the amount of such
fees.
(iii) Fees and taxes described
in section 1005.31(b)(1)(ii) may be estimated under paragraph (b)(2)(i)
of this section only if the amount that will be transferred in the
currency in which it is funded is also estimated under paragraph (b)(2)(i)
of this section, and the estimated amount affects the amount of such
fees and taxes.
(3) Permanent exception for optional disclosure
of non-covered third-party fees and taxes collected by a person other
than the provider. For disclosures described in sections 1005.31(b)(1)
through (3) and 1005.36(a)(1) and (2), estimates may be provided for
applicable non-covered third-party fees and taxes collected on the
remittance transfer by a person other than the provider, which are
permitted to be disclosed under section 1005.31(b)(1)(viii), provided
such estimates are based on reasonable sources of information.
(4) Permanent
exception for estimation of the exchange rate by an insured institution.
(i) Except as
provided in paragraph (b)(4)(ii) of this section, for disclosures
described in sections 1005.31(b)(1) through (3) and 1005.36(a)(1)
and (2), estimates may be provided for a remittance transfer to a
particular country in accordance with paragraph (c) of this section
for the amounts required to be disclosed under section 1005.31(b)(1)(iv)
through (vii), if the designated recipient of the remittance transfer
will receive funds in the country’s local currency and all of the
following conditions are met:
(A) The remittance transfer provider is an
insured institution as defined in paragraph (a)(3) of this section;
(B) At the time the insured institution
must provide, as applicable, the disclosure required by section 1005.31(b)(1)
through (3) or section 1005.36(a)(1) or (2), the insured institution
cannot determine the exact exchange rate required to be disclosed
under section 1005.31(b)(1)(iv) for that remittance transfer;
(C) The insured institution made 1,000 or
fewer remittance transfers in the prior calendar year to the particular
country for which the designated recipients of those transfers received
funds in the country’s local currency; and
(D) The remittance transfer is sent from the
sender’s account with the insured institution; provided however, for
the purposes of this paragraph, a sender’s account does not include
a prepaid account, unless the prepaid account is a payroll card account
or a government benefit account.
(ii) The disclosures in section 1005.31(b)(1)(v)
through (vii) may be estimated under paragraph (b)(4)(i) of this section
only if the exchange rate is permitted to be estimated under paragraph
(b)(4)(i) of this section and the estimated exchange rate affects
the amount of such disclosures.
(5) Permanent
exception for estimation of covered third-party fees by an insured
institution.
(i) Except as provided in paragraph (b)(5)(ii) of this section, for
disclosures described in sections 1005.31(b)(1) through
(3) and 1005.36(a)(1) and (2), estimates may be provided for a remittance
transfer to a particular designated recipient’s institution in accordance
with paragraph (c) of this section for the amounts required to be
disclosed under section 1005.31(b)(1)(vi) through (vii), if all of
the following conditions are met:
(A) The remittance transfer provider is an
insured institution as defined in paragraph (a)(3) of this section;
(B) At the time the insured institution
must provide, as applicable, the disclosure required by section 1005.31(b)(1)
through (3) or section 1005.36(a)(1) or (2), the insured institution
cannot determine the exact covered third-party fees required to be
disclosed under section 1005.31(b)(1)(vi) for that remittance transfer;
(C) The insured institution made 500
or fewer remittance transfers in the prior calendar year to that designated
recipient’s institution, or a United States federal statute or regulation
prohibits the insured institution from being able to determine the
exact covered third-party fees required to be disclosed under section
1005.31(b)(1)(vi) for that remittance transfer; and
(D) The remittance transfer is sent from the
sender’s account with the insured institution; provided however, for
the purposes of this paragraph, a sender’s account does not include
a prepaid account, unless the prepaid account is a payroll card account
or a government benefit account.
(ii) The disclosure in section 1005.31(b)(1)(vii)
may be estimated under paragraph (b)(5)(i) of this section only if
covered third-party fees are permitted to be estimated under paragraph
(b)(5)(i) of this section and the estimated covered third-party fees
affect the amount of such disclosure.
(c) Bases for estimates generally. Estimates provided pursuant to the exceptions in paragraph (a) or
(b)(1) of this section must be based on the below-listed approach
or approaches, except as otherwise permitted by this paragraph. If
a remittance transfer provider bases an estimate on an approach that
is not listed in this paragraph, the provider is deemed to be in compliance
with this paragraph so long as the designated recipient receives the
same, or greater, amount of funds than the remittance transfer provider
disclosed under section 1005.31(b)(1)(vii).
(1) Exchange
rate. In disclosing the exchange rate as required under section
1005.31(b)(1)(iv), an estimate must be based on one of the following:
(i) For remittance
transfers sent via international ACH that qualify for the exception
in paragraph (b)(1)(ii) of this section, the most recent exchange
rate set by the recipient country’s central bank or other governmental
authority and reported by a Federal Reserve Bank;
(ii) The most recent publicly available
wholesale exchange rate and, if applicable, any spread that the remittance
transfer provider or its correspondent typically applies to such a
wholesale rate for remittance transfers for that currency; or
(iii) The most recent exchange rate
offered or used by the person making funds available directly to the
designated recipient or by the person setting the exchange rate.
(2) Transfer amount in the currency in which the
funds will be received by the designated recipient. In disclosing
the transfer amount in the currency in which the funds will be received
by the designated recipient, as required under section 1005.31(b)(1)(v),
an estimate must be based on the estimated exchange rate provided
in accordance with paragraph (c)(1) of this section, prior to any
rounding of the estimated exchange rate.
(3) Covered third-party
fees.
(i) Imposed as percentage of amount transferred. In disclosing covered third-party fees, as described under section
1005.31(b)(1)(vi), that are a percentage of the amount transferred
to the designated recipient, an estimated exchange rate must be based
on the estimated exchange rate provided in accordance with
paragraph (c)(1) of this section, prior to any rounding of the estimated
exchange rate.
(ii) Imposed by the intermediary or final institution. In disclosing covered third-party fees pursuant to section 1005.31(b)(1)(vi),
an estimate must be based on one of the following:
(A) The remittance transfer provider’s
most recent remittance transfer to the designated recipient’s institution,
or
(B) A representative transmittal
route identified by the remittance transfer provider.
(4) Amount of currency that will be received by
the designated recipient. In disclosing the amount of currency
that will be received by the designated recipient as required under
section 1005.31(b)(1)(vii), an estimate must be based on the information
provided in accordance with paragraphs (c)(1) through (3) of this
section, as applicable.
(d) Bases for estimates for transfers scheduled before the date of transfer. Estimates provided pursuant to paragraph (b)(2) of this section
must be based on the exchange rate or, where applicable, the estimated
exchange rate based on an estimation methodology permitted under paragraph
(c) of this section that the provider would have used or did use that
day in providing disclosures to a sender requesting such a remittance
transfer to be made on the same day. If, in accordance with this paragraph,
a remittance transfer provider uses a basis described in paragraph
(c) of this section but not listed in paragraph (c)(1) of this section,
the provider is deemed to be in compliance with this paragraph regardless
of the amount received by the designated recipient, so long as the
estimation methodology is the same that the provider would have used
or did use in providing disclosures to a sender requesting such a
remittance transfer to be made on the same day.
