The Consumer Financial Protection Bureau (CFPB) recently published a final rule for implementation of Section 1073 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("DFA 1073").
Effective October 28, 2013, DFA 1073 creates new consumer protections for remittance transfers sent by consumers in the U.S. to individuals and businesses located in foreign countries. As a result of DFA 1073, financial institutions ("FIs") in the United States that qualify as remittance transfer providers ("RTPs", a term defined in the Rule) will be required to disclose certain information to consumers both prior to, and after execution of, a remittance transfer subject to the Rule.
DFA 1073 stipulates that, effective October 28, 2013, for all remittance transfers initiated by a consumer in the U.S. on or after October 28, 2013, RTPs must:
A Closer Look at the Final Rule
The Consumer Financial Protection Bureau mandates that DFA 1073 must be implemented by banks by October 28, 2013.
The rule finalizes changes made to the original rule, including:
J.P. Morgan's Dodd-Frank Act 1073 - Consumer Cross-Border Payment Solution
J.P. Morgan's Consumer Cross-Border Payment Solution is a new web-based service that will allow RTPs to retrieve the pre- and post-payment information needed to comply with the disclosure requirements of DFA 1073, including sender bank wire fees, delivery dates, as well as certain fees charged by other banks in the payment chain. The solution also allows disclosures to be personalized for a seamless experience for your clients.
J.P. Morgan has developed a solution to comply with the DFA 1073 disclosure requirements, providing disclosures to its own consumers, as well as helping impacted FIs that make payments via J.P. Morgan.
As a market leader in U.S. dollar and foreign currency payments services, our extensive global reach and relationships enable us to engage banks across the globe to gather the required disclosure information on an ongoing basis.
For banks outside of the U.S.: We would appreciate your understanding of market practices and associated fees to better serve the industry and customers. Please complete and submit J.P. Morgan's Survey.
For banks within the U.S.: For more information on J.P. Morgan's Dodd-Frank 1073 Consumer Cross-Border Payment Solution, please contact your J.P. Morgan Representative.