I
105TH CONGRESS
2D SESSION
H. R. 3726
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
APRIL 23, 1998
Mr. GUTIERREZ introduced the following bill; which was referred to the
Committee on Banking and Financial Services
A BILL
To amend the Electronic Fund Transfer Act to require addi-
tional disclosures relating to exchange rates in transfers
involving international transactions.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Wire Transfer Fair-
ness and Disclosure Act of 1998’’.
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, 919, 920,
and 921 as sections 919, 920, 921, and 922, respec-
tively; and
(2) by inserting after section 917 the following
new section:
‘‘SEC. 918. DISCLOSURE OF EXCHANGE RATES IN CONNEC-
TION WITH INTERNATIONAL MONEY TRANS-
FERS.
‘‘(a) DEFINITIONS.—
‘‘(1) INTERNATIONAL MONEY TRANSFER.—The
term ‘international money transfer’ means any
money transmitting service involving an inter-
national transaction which is provided by a financial
institution or a money transmitting business.
‘‘(2) MONEY
TRANSMITTING
SERVICE.—The
term ‘money transmitting service’ has the meaning
given to such term in section 5330(d)(2) of title 31,
United States Code.
‘‘(3) MONEY
TRANSMITTING
BUSINESS.—The
term ‘money transmitting business’ has the meaning
given to such term in section 5330(d)(1) of title 31,
United States Code (other than subparagraph (B) of
such section).
‘‘(b) EXCHANGE RATE AND FEES DISCLOSURES RE-
QUIRED.—
‘‘(1) IN GENERAL.—Any financial institution or
money transmitting business which initiates an
international money transfer on behalf of a con-
sumer (whether or not the consumer maintains an
account at such institution or business) shall provide
the following disclosures in the manner required
under this section:
‘‘(A) The exchange rate used by the finan-
cial 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 trans-
action (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.
‘‘(2) PROMINENT
DISCLOSURE
INSIDE
AND
OUTSIDE
THE
PLACE
OF
BUSINESS
WHERE
AN
INTERNATIONAL MONEY TRANSFER IS INITIATED.—
The information required to be disclosed under para-
graph (1) shall be prominently displayed on the
premises of the financial institution or money trans-
mitting business both at the interior location to
which the public is admitted for purposes of initiat-
ing an international money transfer and on the exte-
rior of any such premises.
‘‘(3) PROMINENT
DISCLOSURE
IN
ALL
RE-
CEIPTS AND FORMS USED IN THE PLACE OF BUSI-
NESS WHERE AN INTERNATIONAL MONEY TRANSFER
IS INITIATED.—The information required to be dis-
closed under paragraph (1) shall be prominently dis-
played on all forms and receipts used by the finan-
cial 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 subsection
(b)(1) shall be included—
‘‘(1) in any advertisement, announcements, or
solicitation which is mailed by the financial institu-
tion or money transmitting business and pertains to
international money transfer; or
‘‘(2) in any print, broadcast, or electronic me-
dium or outdoor advertising display not on the
premises of the financial institution or money trans-
mitting business and pertaining to international
money transfer.
‘‘(d) DISCLOSURES
IN LANGUAGES OTHER THAN
ENGLISH.—The disclosures required under this section
shall be in English and in the same language as that prin-
cipally used by the financial institution or money transmit-
ting 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 at the end of the 3-month
period beginning on the date of the enactment of this Act.
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