I 

108TH CONGRESS 

1ST SESSION H. R. 2637

To amend the Electronic Fund Transfer Act to require additional disclosures 

relating to exchange rates in transfers involving international transactions. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 26, 2003

Mr. GUTIERREZ (for himself, Ms. DELAURO, Mr. ENGEL, Mr. FROST, Mr. 

KUCINICH, Ms. BORDALLO, Mr. GRIJALVA, Mr. MCDERMOTT, Ms. 

ESHOO, Ms. LEE, Mr. OWENS, Mr. LANTOS, Mr. SERRANO, and Mr. 

EMANUEL) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL

To amend the Electronic Fund Transfer Act to require additional disclosures relating to exchange rates in transfers 

involving international transactions.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Wire Transfer Fair5 ness and Disclosure Act of 2003’’. 
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1 SEC. 2. DISCLOSURE OF EXCHANGE RATES IN CONNECTION 

2 WITH INTERNATIONAL MONEY TRANSFERS. 

3 (a) IN GENERAL.—The Electronic Fund Transfer 

4 Act (15 U.S.C. 1693 et seq.) is amended—

5 (1) by redesignating sections 918, 919, 920, 

6 and 921 as sections 919, 920, 921, and 922, respec7 tively; and 

8 (2) by inserting after section 917 the following 

9 new section: 

10 ‘‘SEC. 918. DISCLOSURE OF EXCHANGE RATES IN CONNEC11 TION WITH INTERNATIONAL MONEY TRANS12 FERS. 

13 ‘‘(a) DEFINITIONS.—

14 ‘‘(1) INTERNATIONAL MONEY TRANSFER.—The 

15 term ‘international money transfer’ means any 

16 money transmitting service involving an inter17 national transaction which is provided by a financial 

18 institution or a money transmitting business. 

19 ‘‘(2) MONEY TRANSMITTING SERVICE.—The 

20 term ‘money transmitting service’ has the meaning 

21 given to such term in section 5330(d)(2) of title 31, 

22 United States Code. 

23 ‘‘(3) MONEY TRANSMITTING BUSINESS.—The 

24 term ‘money transmitting business’ means any busi25 ness which—
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1 ‘‘(A) provides check cashing, currency ex2 change, or money transmitting or remittance 

3 services, or issues or redeems money orders, 

4 travelers’ checks, and other similar instruments; 

5 and 

6 ‘‘(B) is not a depository institution (as de7 fined in section 5313(g) of title 31, United 

8 States Code). 

9 ‘‘(b) EXCHANGE RATE AND FEES DISCLOSURES RE10 QUIRED.—

11 ‘‘(1) IN GENERAL.—Any financial institution or 

12 money transmitting business which initiates an 

13 international money transfer on behalf of a con14 sumer (whether or not the consumer maintains an 

15 account at such institution or business) shall provide 

16 the following disclosures in the manner required 

17 under this section: 

18 ‘‘(A) The exchange rate used by the finan19 cial institution or money transmitting business 

20 in connection with such transaction. 

21 ‘‘(B) The exchange rate prevailing at a 

22 major financial center of the foreign country 

23 whose currency is involved in the transaction, 

24 as of the close of business on the business day 

25 immediately preceding the date of the trans-
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1 action (or the official exchange rate, if any, of 

2 the government or central bank of such foreign 

3 country). 

4 ‘‘(C) All commissions and fees charged by 

5 the financial institution or money transmitting 

6 business in connection with such transaction. 

7 ‘‘(D) The exact amount of foreign currency 

8 to be received by the recipient in the foreign 

9 country, which shall be disclosed to the con10 sumer before the transaction is consummated 

11 and printed on the receipt referred to in para12 graph (3). 

13 ‘‘(2) PROMINENT DISCLOSURE INSIDE AND

14 OUTSIDE THE PLACE OF BUSINESS WHERE AN

15 INTERNATIONAL MONEY TRANSFER IS INITIATED.—

16 The information required to be disclosed under sub17 paragraphs (A), (B), and (C) of paragraph (1) shall 

18 be prominently displayed on the premises of the fi19 nancial institution or money transmitting business 

20 both at the interior location to which the public is 

21 admitted for purposes of initiating an international 

22 money transfer and on the exterior of any such 

23 premises. 

24 ‘‘(3) PROMINENT DISCLOSURE IN ALL RE25 CEIPTS AND FORMS USED IN THE PLACE OF BUSI-
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1 NESS WHERE AN INTERNATIONAL MONEY TRANSFER

2 IS INITIATED.—The information required to be dis3 closed under paragraph (1) shall be prominently dis4 played on all forms and receipts used by the finan5 cial institution or money transmitting business when 

6 initiating an international money transfer in such 

7 premises. 

8 ‘‘(c) ADVERTISEMENTS IN PRINT, BROADCAST, AND

9 ELECTRONIC MEDIA AND OUTDOOR ADVERTISING.—The 

10 information required to be disclosed under subparagraphs 

11 (A) and (C) of subsection (b)(1) shall be included—

12 ‘‘(1) in any advertisement, announcements, or 

13 solicitation which is mailed by the financial institu14 tion or money transmitting business and pertains to 

15 international money transfer; or 

16 ‘‘(2) in any print, broadcast, or electronic me17 dium or outdoor advertising display not on the 

18 premises of the financial institution or money trans19 mitting business and pertaining to international 

20 money transfer. 

21 ‘‘(d) DISCLOSURES IN LANGUAGES OTHER THAN

22 ENGLISH.—The disclosures required under this section 

23 shall be in English and in the same language as that prin24 cipally used by the financial institution or money transmit25 ting business, or any of its agents, to advertise, solicit, 
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1 or negotiate, either orally or in writing, at that office if 

2 other than English.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 subsection (a) shall take effect at the end of the 3-month 

5 period beginning on the date of the enactment of this Act.

6 SEC. 3. STUDY ON FEE DISCLOSURES FOR MONEY WIRE 

7 TRANSMISSIONS. 

8 (a) STUDY.—The Federal banking agencies (as de9 fined in section 3 of the Federal Deposit Insurance Act) 

10 and the Secretary of the Treasury shall jointly conduct 

11 a study on the need for fee disclosures for money wire 

12 transmissions. 

13 (b) COMPARISON OF PRICES.—The study shall com14 pare the disclosures provided by federally insured deposi15 tory institutions for money wire transmissions with disclo16 sures provided by money transmitting businesses (as de17 fined in section 5330(d)(1) of title 31, United States 

18 Code) for such transmissions. 

19 (c) REPORT REQUIRED.—The Federal banking agen20 cies and the Secretary of the Treasury shall submit a re21 port on the study required under subsection (a) to the 

22 Congress before the end of the 1-year period beginning 

23 on the date of the enactment of this Act.

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