A bill to amend the Electronic Fund Transfer Act to require additional disclosures relating to exchange rates in transfers involving international transactions.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Wire Transfer Fairness and 
Disclosure Act of 2002''.

SEC. 2. DISCLOSURE OF EXCHANGE RATES IN CONNECTION WITH INTERNATIONAL 
              MONEY TRANSFERS.

    (a) In General.--The Electronic Fund Transfer Act (15 U.S.C. 1693 
et seq.) is amended--
            (1) by redesignating sections 918 through 921 as sections 
        919 through 922, respectively; and
            (2) by inserting after section 917 the following new 
        section:

``SEC. 918. DISCLOSURE OF EXCHANGE RATES IN CONNECTION WITH 
              INTERNATIONAL MONEY TRANSFERS.

    ``(a) Definitions.--In this section, the following definitions 
shall apply:
            ``(1) International money transfer.--The term 
        `international money transfer' means any money transmitting 
        service involving an international transaction which is 
        provided by a financial institution or a money transmitting 
        business.
            ``(2) Money transmitting service.--The term `money 
        transmitting service' has the same meaning as in section 
        5330(d)(2) of title 31, United States Code.
            ``(3) Money transmitting business.--The term `money 
        transmitting business' means any business which--
                    ``(A) provides check cashing, currency exchange, or 
                money transmitting or remittance services, or issues or 
                redeems money orders, travelers' checks, or other 
                similar instruments; and
                    ``(B) is not a depository institution (as defined 
                in section 5313(g) of title 31, United States Code).
    ``(b) Exchange Rate and Fees Disclosures Required.--
            ``(1) In general.--Any financial institution or money 
        transmitting business which initiates an international money 
        transfer on behalf of a consumer (whether or not the consumer 
        maintains an account at such institution or business) shall 
        disclose, in the manner required under this section--
                    ``(A) the exchange rate used by the financial 
                institution or money transmitting business in 
                connection with such transaction;
                    ``(B) the exchange rate prevailing at a major 
                financial center of the foreign country whose currency 
                is involved in the transaction, as of the close of 
                business on the business day immediately preceding the 
                date of the transaction (or the official exchange rate, 
                if any, of the government or central bank of such 
                foreign country);
                    ``(C) all commissions and fees charged by the 
                financial institution or money transmitting business in 
                connection with such transaction; and
                    ``(D) the exact amount of foreign currency to be 
                received by the recipient in the foreign country, which 
                shall be disclosed to the consumer before the 
                transaction is consummated and printed on the receipt 
                referred to in paragraph (3).
            ``(2) Prominent disclosure inside and outside the place of 
        business where an international money transfer is initiated.--
        The information required to be disclosed under subparagraphs 
        (A), (B), and (C) of paragraph (1) shall be prominently 
        displayed on the premises of the financial institution or money 
        transmitting business both at the interior location to which 
        the public is admitted for purposes of initiating an 
        international money transfer, and on the exterior of any such 
        premises.
            ``(3) Prominent disclosure in all receipts and forms used 
        in the place of business where an international money transfer 
        is initiated.--All information required to be disclosed under 
        paragraph (1) shall be prominently displayed on all forms and 
        receipts used by the financial institution or money 
        transmitting business when initiating an international money 
        transfer in such premises.
    ``(c) Advertisements in Print, Broadcast, and Electronic Media and 
Outdoor Advertising.--The information required to be disclosed under 
subparagraphs (A) and (C) of subsection (b)(1) shall be included--
            ``(1) in any advertisement, announcement, or solicitation 
        which is mailed by the financial institution or money 
        transmitting business and pertains to international money 
        transfers; or
            ``(2) in any print, broadcast, or electronic medium or 
        outdoor advertising display not on the premises of the 
        financial institution or money transmitting business and 
        pertaining to international money transfers.
    ``(d) Disclosures in Languages Other Than English.--The disclosures 
required under this section shall be in English and in the same 
language as that principally used by the financial institution or money 
transmitting business, or any of its agents, to advertise, solicit, or 
negotiate, either orally or in writing, at that office, if other than 
English.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 3 months after the date of enactment of this Act.

Summary: Wire Transfer Fairness and Disclosure Act of 2002 - Amends the Electronic Fund Transfer Act to require that the following disclosures be prominently displayed on the premises of a money transmitting business which initiates an international money transfer for a consumer: (1) the exchange rate used in connection with such transaction. (2) the exchange rate prevailing at a major financial center of the foreign country whose currency is involved in the transaction. (3) all commissions and fees charged in connection with such transaction. And (4) the exact amount of foreign currency to be received by the recipient in the foreign country, which shall be disclosed to the consumer before the transaction is consummated. Requires further that such disclosures be prominently revealed in advertisements and receipts used by the business, and in the same language as that principally used by the business to advertise, solicit, or negotiate, at that office, if other than English.