Compliance Officials from Knight Investments LLC stated that the rule would have effects on how they would review future banking transfers on documents submitted for compliance.
Regulatory Officials stated that the proposed rule would require that remittance transfer providers make certain disclosures to senders of remittance transfers, including information about fees and the exchange rate, as applicable, and the amount of currency to be received by the recipient.
Researchers have stated that the amount of currency received would be a key factor in determining consideration for transactions. In addition, the proposed rule would provide error resolution and cancellation rights for senders of remittance transfers.
Officials have stated that the proposal is being made under Regulation E (Electronic Fund Transfers) pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The Federal Register notice is attached on the Federal Reserve website and comments on the proposal must be submitted within 60 days after publication in the Federal Register, which is expected shortly.
Compliance Officials encouraged any individuals involved in sending wire transfers of significant numbers to comment on the new legislation, and review the long term effects on their future business.
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