I

107TH CONGRESS

1ST SESSION H. R. 1306

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

MARCH 29, 2001

Mr. GUTIERREZ (for himself, Mr. EHLERS, Mr. LAFALCE, Mr. HINCHEY, Ms.

BALDWIN, Mr. FARR of California, Mr. ENGEL, Ms. WOOLSEY, Mr.

BONIOR, Mr. RODRIGUEZ, Ms. CARSON of Indiana, Ms. ROS-LEHTINEN,

Mr. LANTOS, Ms. MCKINNEY, Ms. ROYBAL-ALLARD, Mr. BLAGOJEVICH,

Mr. FRANK, Mr. ORTIZ, Mr. BARRETT, Mr. LEWIS of Georgia, Mr. LIPINSKI, Mr. SANDERS, Mr. EVANS, Mr. MENENDEZ, Mr. FILNER, Mr.

BERMAN, Ms. ESHOO, Mr. DAVIS of Illinois, Mrs. LOWEY, Ms. NORTON,

Mrs. THURMAN, Ms. LEE, Ms. BROWN of Florida, Mrs. NAPOLITANO,

Mr. WEXLER, Mr. CONYERS, Mrs. JONES of Ohio, Mr. COSTELLO, Mr.

HINOJOSA, Mr. OWENS, Mr. GEORGE MILLER of California, Mr. FROST,

Ms. SOLIS, Mrs. MALONEY of New York, Mr. BECERRA, Mr. REYES, Mr.

CUMMINGS, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. HONDA, Mr.

ACEVEDO-VILA ́, Mr. DEUTSCH, Mr. SERRANO, Ms. SCHAKOWSKY, Ms.

SANCHEZ, Mr. WYNN, Mr. CAPUANO, and Ms. LOFGREN) 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,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Wire Transfer Fair3 ness and Disclosure Act of 2001’’.

4 SEC. 2. DISCLOSURE OF EXCHANGE RATES IN CONNECTION

5 WITH INTERNATIONAL MONEY TRANSFERS.

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

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

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

9 and 921 as sections 919, 920, 921, and 922, respec10 tively; and

11 (2) by inserting after section 917 the following

12 new section:

13 ‘‘SEC. 918. DISCLOSURE OF EXCHANGE RATES IN CONNEC14 TION WITH INTERNATIONAL MONEY TRANS15 FERS.

16 ‘‘(a) DEFINITIONS.—

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

18 term ‘international money transfer’ means any

19 money transmitting service involving an inter20 national transaction which is provided by a financial

21 institution or a money transmitting business.

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

23 term ‘money transmitting service’ has the meaning

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

25 United States Code.
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1 ‘‘(3) MONEY TRANSMITTING BUSINESS.—The

2 term ‘money transmitting business’ means any busi3 ness which—

4 (A) provides check cashing, currency ex5 change, or money transmitting or remittance

6 services, or issues or redeems money orders,

7 travelers’ checks, and other similar instruments;

8 and

9 (B) is not a depository institution (as de10 fined in section 5313(g) of title 31, United

11 States Code).

12 ‘‘(b) EXCHANGE RATE AND FEES DISCLOSURES RE13 QUIRED.—

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

15 money transmitting business which initiates an

16 international money transfer on behalf of a con17 sumer (whether or not the consumer maintains an

18 account at such institution or business) shall provide

19 the following disclosures in the manner required

20 under this section:

21 ‘‘(A) The exchange rate used by the finan22 cial institution or money transmitting business

23 in connection with such transaction.

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

25 major financial center of the foreign country
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1 whose currency is involved in the transaction,

2 as of the close of business on the business day

3 immediately preceding the date of the trans4 action (or the official exchange rate, if any, of

5 the government or central bank of such foreign

6 country).

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

8 the financial institution or money transmitting

9 business in connection with such transaction.

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

11 to be received by the recipient in the foreign

12 country, which shall be disclosed to the con13 sumer before the transaction is consummated

14 and printed on the receipt referred to in para15 graph (3).

16 ‘‘(2) PROMINENT DISCLOSURE INSIDE AND

17 OUTSIDE THE PLACE OF BUSINESS WHERE AN

18 INTERNATIONAL MONEY TRANSFER IS INITIATED.—

19 The information required to be disclosed under sub20 paragraphs (A)(B) and (C) of paragraph (1) shall be

21 prominently displayed on the premises of the finan22 cial institution or money transmitting business both

23 at the interior location to which the public is admit24 ted for purposes of initiating an international money

25 transfer and on the exterior of any such premises.
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1 ‘‘(3) PROMINENT DISCLOSURE IN ALL RE2 CEIPTS AND FORMS USED IN THE PLACE OF BUSI3 NESS WHERE AN INTERNATIONAL MONEY TRANSFER

4 IS INITIATED.—The information required to be dis5 closed under paragraph (1) shall be prominently dis6 played on all forms and receipts used by the finan7 cial institution or money transmitting business when

8 initiating an international money transfer in such

9 premises.

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

11 ELECTRONIC MEDIA AND OUTDOOR ADVERTISING.—The

12 information required to be disclosed under subparagraphs

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

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

15 solicitation which is mailed by the financial institu16 tion or money transmitting business and pertains to

17 international money transfer; or

18 ‘‘(2) in any print, broadcast, or electronic me19 dium or outdoor advertising display not on the

20 premises of the financial institution or money trans21 mitting business and pertaining to international

22 money transfer.

23 ‘‘(d) DISCLOSURES IN LANGUAGES OTHER THAN

24 ENGLISH.—The disclosures required under this section

25 shall be in English and in the same language as that prin-
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1 cipally used by the financial institution or money transmit2 ting business, or any of its agents, to advertise, solicit,

3 or negotiate, either orally or in writing, at that office if

4 other than English.’’.

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

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

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

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