Categorized | Business

New rules for money transfers


The State of Hawaii is reminding money transmitters and consumers that new rules for the millions of transfers made each year began Oct. 28.

The changes are in accordance with the federal Dodd-Frank Act that was designed to provide more consumer protections, including enhanced implementation of the Electronic Funds Transfer Act.

A “remittance transfer” is an electronic transfer of money from a consumer in the United States to a person or business in a foreign country, whether by a wire transfer, an automated clearinghouse (ACH) transaction, or another method.

In 2012, there were more than 9.6 million money transfers recorded in Hawaii that totaled more than $2.3 billion. There are currently 46 licensed money transmitters with the state with more than 900 delegated operators.

One of the required changes is that transmitters must begin providing contact information for the state Department of Commerce and Consumer Affairs’ (DCCA) Division of Financial Institutions (DFI) and the federal Consumer Financial Protection Bureau on receipts.

The new rules also require the disclosure of:

* Fees and taxes imposed on the remittance transfer

* Applicable exchange rate

* Currency amount to be received by the recipient

* Estimates on remittance transfer services

* Error resolution rights for senders

* Creation of standards for resolving errors and record keeping rules

* Creation of rules regarding appropriate cancellation and refund policies

* Acts of Agents

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