Except as otherwise provided, for purposes of this subpart,
the following definitions apply:
(a) “Agent” means an agent,
authorized delegate, or person affiliated with a remittance transfer
provider, as defined under State or other applicable law, when such
agent, authorized delegate, or affiliate acts for that remittance
transfer provider.
(b) “Business day” means
any day on which the offices of a remittance transfer provider are
open to the public for carrying on substantially all business functions.
(c) “Designated recipient” means any person specified by the
sender as the authorized recipient of a remittance transfer to be
received at a location in a foreign country.
(d) “Preauthorized
remittance transfer” means a remittance transfer authorized in advance
to recur at substantially regular intervals.
(e) Remittance transfer.
(1) General definition. A “remittance transfer” means the electronic transfer of funds requested
by a sender to a designated recipient that is sent by a remittance
transfer provider. The term applies regardless of whether the sender holds
an account with the remittance transfer provider, and regardless of
whether the transaction is also an electronic fund transfer, as defined
in section 1005.3(b).
(2) Exclusions from coverage. The term “remittance
transfer” does not include:
(i) Small
value transactions. Transfer amounts, as described in section
1005.31(b)(1)(i), of $15 or less.
(ii) Securities and commodities transfers. Any transfer that is excluded from the definition of electronic
fund transfer under section 1005.3(c)(4).
(f) Remittance transfer provider.
(1) General definition. “Remittance transfer
provider” or “provider” means any person that provides remittance
transfers for a consumer in the normal course of its business, regardless
of whether the consumer holds an account with such person.
(2) Normal course
of business.
(i) Safe harbor. For purposes of paragraph
(f)(1) of this section, a person is deemed not to be providing remittance
transfers for a consumer in the normal course of its business if the
person:
(A) Provided
500 or fewer remittance transfers in the previous calendar year; and
(B) Provides 500 or fewer remittance
transfers in the current calendar year.
(ii) Transition
period—coming into compliance. Beginning on July 21, 2020, if
a person that provided 500 or fewer remittance transfers in the previous
calendar year provides more than 500 remittance transfers in the current
calendar year, and if that person is then providing remittance transfers
for a consumer in the normal course of its business pursuant to paragraph
(f)(1) of this section, the person has a reasonable period of time,
not to exceed six months, to begin complying with this subpart. Compliance
with this subpart will not be required for any remittance transfers
for which payment is made during that reasonable period of time.
(iii) Transition period—qualifying for the safe harbor. If a person
who previously provided remittance transfers in the normal course
of its business in excess of the safe harbor threshold set forth in
this paragraph (f)(2) determines that, as of a particular date, it
will qualify for the safe harbor, it may cease complying with the
requirements of this subpart with respect to any remittance transfers
for which payment is made after that date. The requirements of the
Act and this part, including those set forth in sections 1005.33 and
1005.34, as well as the requirements set forth in section 1005.13,
continue to apply to transfers for which payment is made prior to
that date.
(g) “Sender” means a consumer
in a State who primarily for personal, family, or household purposes
requests a remittance transfer provider to send a remittance transfer
to a designated recipient.
(h) Third-party
fees.
(1) Covered third-party fees. The term “covered
third-party fees” means any fees imposed on the remittance transfer
by a person other than the remittance transfer provider except for
fees described in paragraph (h)(2) of this section.
(2) Non-covered
third-party fees. The term “non-covered third-party fees” means
any fees imposed by the designated recipient’s institution for receiving
a remittance transfer into an account except if the institution acts
as an agent of the remittance transfer provider.
