Rules and Regulations Federal Register
Vol. 76, No. 230
Wednesday, November 30, 2011
This section of the FEDERAL REGISTER fields of membership under the and the estimated date of delivery. In
contains regulatory documents having general Financial Services Regulatory Relief Act addition, the law requires the sender to
applicability and legal effect, most of which of 2006 (Reg Relief Act), Public Law receive a statement that addresses error
are keyed to and codified in the Code of 109–351. Congress intended to allow resolution rights.
Federal Regulations, which is published under FCUs ‘‘to sell negotiable checks, money The Board of Governors of the Federal
50 titles pursuant to 44 U.S.C. 1510.
orders, and other similar transfer Reserve proposed a remittance transfer
The Code of Federal Regulations is sold by instruments, including international rule, which addresses disclosure
the Superintendent of Documents. Prices of and domestic electronic fund transfers, requirements and error resolution, and
new books are listed in the first FEDERAL to anyone eligible for membership, provides a detailed analysis of the
REGISTER issue of each week. regardless of their membership status.’’ services offered by remittance transfer
S. Rpt. 109–256, p. 5; H. Rpt. 109–356 providers. 99 FR 29902 (May 23, 2011).
Part 1, p. 63. As a result, NCUA created The Consumer Financial Protection
NATIONAL CREDIT UNION a rule, § 701.30, to address an FCU’s Bureau assumed responsibility for
ADMINISTRATION authority to provide financial services to issuing the final remittance transfer rule
persons within its field of membership. after the close of the comment period on
12 CFR Part 701 71 FR 62875 (Oct. 27, 2006) (interim July 22, 2011.
RIN 3133–AD94 final rule); 72 FR 7927 (Feb. 22, 2007) FCUs have had the authority to
(final rule). transfer funds at the request of
Remittance Transfers Section 1073 of the Dodd-Frank Act consumers within their fields of
AGENCY: National Credit Union added a new Section 919 to the EFTA, membership to recipients
Administration (NCUA). entitled ‘‘Remittance Transfers.’’ Public internationally since the adoption of the
Law 111–203, § 1073, 124 Stat. 2066 Reg Relief Act. The amendment to the
ACTION: Final rule.
(2010). The new Section 919 of the FCU Act’s powers provision by the
SUMMARY: NCUA is amending its rules EFTA creates protections for consumers Dodd-Frank Act makes plain that FCUs
to conform to amendments made to the who, through remittance transfer may offer all variations of remittance
Federal Credit Union Act (FCU Act) by providers, send money to designated transfers, as now defined by the EFTA,
the Dodd-Frank Wall Street Reform and recipients located in foreign countries. for the benefit of consumers within their
Consumer Protection Act (Dodd-Frank 15 U.S.C. 1693o–1. Paragraph (d) of fields of membership, subject to certain
Act). The final rule adds remittance Section 1073 of Dodd-Frank amended consumer protections. The addition of
transfers, as now defined under the the FCU Act to specify that a remittance remittance transfers as an example of
Electronic Fund Transfer Act (EFTA), as transfer, as defined by new Section 919 permissible money transfer instruments,
an example of money transfer of the EFTA, is an example of a money in addition to the newly-enacted
instruments federal credit unions transfer instrument that FCUs may sell consumer disclosures and rights,
(FCUs) may provide to persons within to persons within their fields of demonstrate the clear intention of
their fields of membership. membership. 12 U.S.C. 1757(12)(A). Congress to promote access to
Section 919(g)(2) of the EFTA, defines remittance transfers and ensure
DATES: Effective on November 30, 2011
a remittance transfer as an electronic protections for consumers.
NCUA is adopting the interim final rule
transfer of funds requested by a sender Finally, Section 1073(d) of the Dodd-
published on July 27, 2011, 76 FR
to a designated recipient that is initiated Frank Act adjusted Section 107(12) of
44761, without change.
by a remittance transfer provider, the FCU Act by removing the reference
FOR FURTHER INFORMATION CONTACT: regardless of whether the sender has an to the receipt of international and
Chrisanthy Loizos, Staff Attorney, Office account with the remittance transfer domestic EFTs from subparagraph (B).
of General Counsel, at the above address provider or whether the transfer meets As explained below, this simply
or telephone: (703) 518–6540. the statute’s definition of an electronic eliminates a redundancy and does not
SUPPLEMENTARY INFORMATION: funds transfer (EFT). 15 U.S.C. 1693o– affect the ability of FCUs to offer EFT
I. Background 1(g)(2). The law excludes small value services.
II. Summary of Public Comments transactions from the definition.
III. Final Rule Remittance transfers, typically What changes did the interim final rule
IV. Regulatory Procedures consumer to consumer payments, may make?
I. Background 1 be executed through a variety of means, In the interim final rule, the NCUA
including international wire transfers, Board (Board) amended § 701.30 to
Why is NCUA adopting this rule? international automated clearing house directly track the statutory provisions of
Since 2006, FCUs have had the transactions, other account-to-account Section 1073 of the Dodd-Frank Act. 76
authority to provide certain financial or account-to-cash products, and FR 44761 (Jul. 27, 2011). The Board
services to all persons within their reloadable prepaid cards. The law added remittance transfers as defined by
requires remittance transfer providers to Section 919 of the EFTA as an example
tkelley on DSK3SPTVN1PROD with RULES
1 President Obama signed the Plain Writing Act give consumers certain disclosures, of permissible money transfer
of 2010 (Pub. L. 111–274) into law on October 13, including a receipt that contains instruments in paragraph (a). The Board
2010 ‘‘to improve the effectiveness and remittance transfer fees, the exchange also amended paragraph (b) to remove
accountability of federal agencies to the public by
promoting clear Government communication that
rate to be used by the remittance the language referring to an FCU’s
the public can understand and use.’’ This preamble transfer provider, the amount of receipt of international and domestic
is written to meet plain writing objectives. currency to be received by the recipient EFTs.
VerDate Mar<15>2010 14:06 Nov 29, 2011 Jkt 226001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\30NOR1.SGM 30NOR1
73994 Federal Register / Vol. 76, No. 230 / Wednesday, November 30, 2011 / Rules and Regulations
The Board notes the amendment to remove redundant language and has no Small Business Regulatory Enforcement
§ 701.30(b) will have no effect on FCUs. substantive effect. Fairness Act
The Board views the deletion of the When NCUA issues a final rule, as
phrase ‘‘and receive international and III. Final Rule
defined in the Section 551 of the
domestic electronic fund transfers’’ from As discussed above, the Board is Administrative Procedure Act, it triggers
the Section 107(12)(B) of the FCU Act as adopting the interim final rule a reporting requirement for
a housekeeping amendment. When published on July 27, 2011, 76 FR congressional review of agency rules,
Congress adopted the phrase in Section 44761, without change. under the Small Business Regulatory
107(12)(B) through the Reg Relief Act, it Enforcement Fairness Act of 1996,
simply clarified the authority it granted IV. Regulatory Procedures
Public Law 104–121 (SBREFA). The
to FCUs in Section 107(12)(A). 12 U.S.C. Office of Management and Budget has
Regulatory Flexibility Act
1757(12). Section 903 of the EFTA determined that this rule is not a major
defines ‘‘electronic fund transfer’’ as NCUA must prepare an analysis to rule for purposes of SBREFA.
‘‘any transfer of funds * * * initiated describe any significant economic
through an electronic terminal, impact a proposed rule may have on a List of Subjects in 12 CFR Part 701
telephonic instrument, or computer or substantial number of small entities Credit unions.
magnetic tape so as to order, instruct, or (primarily those under ten million
authorize a financial institution to debit dollars in assets) the Regulatory By the National Credit Union
or credit an account.’’ 15 U.S.C. Flexibility Act. This proposed rule Administration Board on November 17, 2011.
1693a(6); see also 12 CFR 205.3(b). By reduces compliance burden and extends Mary Rupp,
allowing FCUs ‘‘to sell’’ international regulatory relief while maintaining
and domestic EFTs in Section Secretary of the Board.
existing safety and soundness standards.
107(12)(A) of the FCU Act, Congress NCUA has determined this rule will not PART 701—ORGANIZATION AND
permitted FCUs to send or receive funds have a significant economic impact on OPERATION OF FEDERAL CREDIT
upon instruction because, by definition, a substantial number of small credit UNIONS
EFTs are authorizations to debit or unions, so NCUA is not required to
credit an account. To read the power ‘‘to conduct a regulatory flexibility analysis. Accordingly, the interim final
sell’’ EFT services separately from the amending 12 CFR part 701 which was
ability to ‘‘receive’’ EFTs would be Paperwork Reduction Act published at 76 FR 44761 on July 27,
wholly inconsistent with Congressional 2011, is adopted as a final rule without
intent to provide EFT services to NCUA has determined that this rule change.
persons in the field of membership, will not increase paperwork
[FR Doc. 2011–30365 Filed 11–29–11; 8:45 am]
particularly for those who may not have requirements under the Paperwork
Reduction Act of 1995 and regulations BILLING CODE 7535–01–P
ready and affordable access to these
services. It would also be unfeasible for of the Office of Management and
an FCU to offer consumers the ability to Budget.
NATIONAL CREDIT UNION
initiate transfers from their accounts but Executive Order 13132 ADMINISTRATION
not receive EFTs. As discussed above,
Congress clearly intended to promote Executive Order 13132 encourages 12 CFR Part 750
the availability of services to consumers independent regulatory agencies to
under Section 1073 of the Dodd-Frank consider the impact of their actions on
Act by explicitly referencing remittance state and local interests. NCUA, an Golden Parachute and Indemnification
transfers services. The amendment to independent regulatory agency as Payments; Technical Correction
FCU Act Section 107(12)(B) was not defined in 44 U.S.C. 3502(5), voluntarily
meant to restrict or otherwise limit an complies with the executive order to AGENCY: National Credit Union
FCU’s ability to effectively provide adhere to fundamental federalism Administration (NCUA).
services to consumers. principles. This would not have a ACTION: Final rule.
substantial direct effect on the states, on
II. Summary of Public Comments the relationship between the national SUMMARY: NCUA is finalizing an interim
In response to the Board’s request for government and the states, or on the rule to make a technical correction to its
comments, NCUA received only one distribution of power and rule restricting a federally insured credit
comment letter. The commenter, a responsibilities among the various union (FICU) from making golden
credit union trade association, fully levels of government. NCUA has parachute and indemnification
supported the interim rule and the determined that this rule does not payments to an institution-affiliated
Board’s reading of Section 1073 of the constitute a policy that has federalism party (IAP). The amendment corrects an
Dodd-Frank Act. The commenter agreed implications for purposes of the exception to the definition of golden
the Dodd-Frank Act did not change executive order. parachute payment pertaining to plans
FCUs’ authorized business activities but offered under section 457 of the Internal
The Treasury and General Government Revenue Code. The interim final rule
simply added ‘‘remittance transfers,’’ as Appropriations Act, 1999—Assessment
now defined by and regulated under the became effective on June 27, 2011. This
of Federal Regulations and Policies on rulemaking finalizes the interim rule
EFTA, as an example of a type of Families
international electronic funds transfer without change.
tkelley on DSK3SPTVN1PROD with RULES
service. The commenter also had the NCUA has determined that this rule DATES: Effective on November 30, 2011
understanding that Congress’s deletion will not affect family well-being within NCUA is adopting the interim final rule
from FCU Act Section 107(12) of the the meaning of section 654 of the published on June 24, 2011, 76 FR
express authority for persons within the Treasury and General Government 36979, without change.
field of membership to receive Appropriations Act, 1999, Public Law FOR FURTHER INFORMATION CONTACT:
electronic funds transfers was simply to 105–277, 112 Stat. 2681 (1998). Pamela Yu, Staff Attorney, Office of
VerDate Mar<15>2010 16:47 Nov 29, 2011 Jkt 226001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\30NOR1.SGM 30NOR1