§5601 Remittance Transfers

Summary

The Board of Governors must work with the Federal Reserve banks and the Department of the Treasury to use the automated clearinghouse (ACH) and other payment methods more for money sent from the United States to other countries. They must focus on countries that get lots of U.S. remittances by looking at the number, volume, and size of transfers; how important those transfers are to the receiving country’s finances, including the total amount sent and U.S. government payments to people abroad; whether expansion is doable; and whether the Federal Reserve can set up payment gateways in different regions and currency zones. Not later than one calendar year after July 21, 2010, and on April 30 biennially thereafter during the 10-year period beginning on July 21, 2010, the Board must report to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services about progress. The report must analyze how widely International ACH Transactions rules and formats are being used, whether increasing their use would work, and recommend ways to boost adoption. Federal banking agencies and the National Credit Union Administration must give guidance to banks and credit unions they supervise about offering low-cost remittance transfers and free or low-cost basic accounts, and about acting as agents for remittance providers. As members of the Financial Literacy and Education Commission, the Bureau and these agencies must help carry out the SAFE Strategy for remittances. Before the end of the 365-day period beginning on July 21, 2010, the Director must report to the President and the same two Congressional committees on how remittance history could improve a consumer’s credit score, the legal and business barriers to doing so, and recommendations for clear exchange-rate disclosure, including telling senders the actual rate used and how much the recipient received.