[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1344 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 1344
To amend the Electronic Fund Transfer Act to require additional
disclosures relating to exchange rates in transfers involving
international transactions, and for other purposes.
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IN THE SENATE OF THE UNITED STATES
June 26, 2003
Mr. Corzine (for himself, Mr. Schumer, Mr. Akaka, and Mrs. Boxer)
introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban
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A BILL
To amend the Electronic Fund Transfer Act to require additional
disclosures relating to exchange rates in transfers involving
international transactions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Money Wire Improvement and
Remittance Enhancement Act of 2003'' (or the ``Money WIRE Act of
2003'').
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, 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.--
``(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 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' means any business which--
``(A) provides check cashing, currency exchange, or
money transmitting or remittance services, or issues or
redeems money orders, travelers' checks, and 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
provide the following disclosures 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.
``(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.--The 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, announcements, or solicitation
which is mailed by the financial institution or money
transmitting business and pertains to international money
transfer; 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 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 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 amendments 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.
SEC. 3. STUDY ON FEE DISCLOSURES FOR MONEY WIRE TRANSMISSIONS.
(a) Study.--The Federal banking agencies (as defined in section 3
of the Federal Deposit Insurance Act) and the Secretary of the Treasury
shall jointly conduct a study on fees charged and fee disclosures for
money wire transmissions.
(b) Comparison of Prices.--The study required by subsection (a)
shall compare the disclosures provided by federally insured depository
institutions for money wire transmissions with disclosures provided by
money transmitting businesses (as defined in section 5330(d)(1) of
title 31, United States Code) for such transmissions.
(c) Report Required.--The Federal banking agencies and the
Secretary of the Treasury shall jointly submit a report on the study
required under subsection (a) to the Congress before the end of the 1-
year period beginning on the date of enactment of this Act.
SEC. 4. FEDERAL CREDIT UNION ACT AMENDMENT.
Paragraph (12) of section 107 of the Federal Credit Union Act (12
U.S.C. 1757(12)) is amended to read as follows:
``(12) in accordance with regulations prescribed by the
Board--
``(A) to sell, to persons in the field of
membership, negotiable checks (including travelers
checks), money orders, and other similar money transfer
instruments; and
``(B) to cash checks and money orders for persons
in the field of membership for a fee;''.
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