IC Template-Remittance Transfer Rule Temporary Exception Experience Interviews

CONSUMER FINANCIAL PROTECTION BUREAU
REQUEST FOR APPROVAL UNDER THE GENERIC CLEARANCE
COMPLIANCE COSTS AND OTHER EFFECTS OF REGULATIONS
(OMB Control Number: 3170-0032)

TITLE OF INFORMATION COLLECTION: Remittance Transfer Rule Temporary
Exception Experience Interviews
PURPOSE: Section 1073 of the Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank Act) amended the Electronic Fund Transfer Act (EFTA) and created a new set of
consumer protections for certain transfers sent by consumers in the United States to recipients
abroad. The covered transactions are called “remittance transfers” and the covered entities are
called “remittance transfer providers.” To implement section 1073 of the Dodd-Frank Act and
section 919 of the EFTA, the Consumer Financial Protection Bureau (“Bureau”) has amended
Regulation E effective October 28, 2013. See 78 FR 49365 (Aug. 14, 2013); 78 FR 30662 (May
22, 2013); 77 FR 50244 (Aug. 20, 2012); 77 FR 40459 (July 10, 2012); 77 FR 6194 (Feb. 7,
2012) (collectively, “Remittance Transfer Rule”).
Pursuant to the statute, the Remittance Transfer Rule allows insured depository institutions and
credit unions an exception to certain requirements of the Rule. Under this “temporary
exception,” until July 21, 2015, these providers can provide certain reasonably accurate
estimates, even where other providers must disclose actual amounts. The temporary exception
does not apply to remittance transfer providers other than insured depository institutions and
credit unions. However, there are other types of remittance transfer providers that may use
methods similar to those used by insured depository institutions and credit unions to send
remittances. In addition, the Securities and Exchange Commission (SEC) staff has written a no
action letter that concludes that SEC staff will not recommend enforcement action to the SEC
under Regulation E if a broker-dealer provides disclosures as though the broker-dealer were an
insured institution for purposes of the temporary exception. 1 With regard to insured depository
institutions and credit unions, the Dodd-Frank Act permits the Bureau to extend the temporary
exception for up to five years after July 21, 2015 if it “determines that termination of such
provision would negatively affect the ability of [insured depository institutions and credit unions]
to send remittances to locations in foreign countries.” EFTA section 919(a)(4)(B).
The Bureau seeks approval to collect information from businesses to further its understanding of
the temporary exception by assessing the usefulness and impact of the temporary exception to
insured depository institutions and credit unions, who are permitted use of the temporary
exception by the Remittance Transfer Rule, and broker-dealers, who may be relying on the
SEC’s no-action letter to estimate disclosed figures. The proposed information collection would
extend to these three types of remittance transfer providers, as well as service providers to them.
In addition, the Bureau seeks approval to collect information from other remittance transfer
providers who are not allowed to use the temporary exception in order to understand any
challenges, costs, or opportunities that institutions providing products similar to those provided

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See http://www.sec.gov/divisions/marketreg/mr-noaction/2012/financial-information-forum-121412-rege.pdf
(accessed on October 16, 2013).

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by depository institutions and credit unions, but not covered by the temporary exception face and
the solutions that such entities employ.
The Bureau hopes that the voluntary information collected from depository institutions, credit
unions, broker-dealers, service providers to these entities, as well as other remittance transfer
providers who are not allowed to use the temporary exception will help the Bureau both better
understand the ways in which businesses use the temporary exception and the alternatives to it,
and consider whether or not to propose any changes regarding the temporary exception,
including a possible extension beyond 2015 following a rulemaking process including the
solicitation of public comments. By interviewing those who cannot use the temporary exception,
the Bureau hopes to learn more about the feasibility of alternatives to disclosure in accordance
with the temporary exception.
If the Bureau determines it appropriate to extend the temporary exception, the Bureau expect to
issue a notice of proposed rulemaking in which the Bureau would propose to extend the
temporary exception. The Bureau would seek public comment on any proposal it might issue.
DESCRIPTION OF RESPONDENTS: Respondents for this information collection will
include relevant executives and representatives from volunteer participant institutions. These
respondents will represent various departments and functional areas from insured depository
institutions, credit unions, broker-dealers, service providers to these entities, and other remittance
transfer providers who are not allowed to use the temporary exception.

TYPE OF COLLECTION: (Check one)
[ ] Customer Comment Card/Complaint Form
[ ] Usability Testing
[ ] Focus Group

[ ] Customer Satisfaction Survey
[ ] Small Discussion Group
[X] Other: Structured interview____

CERTIFICATION:
By submitting this document, the Bureau certifies the following to be true:
1. The collection is voluntary.
2. The collection is low-burden for respondents and low-cost for the Federal Government.
3. The collection is non-controversial and does not raise issues of concern to other federal
agencies.
4. Information gathered will not be used solely for the purpose of substantially informing
influential policy decisions.
5. The collection is targeted to the solicitation of opinions from respondents who have
experience with the program or may have experience with the program in the future.
6. The results will not be used to measure regulatory compliance or for program evaluation.
Personally Identifiable Information:
1. Is personally identifiable information (PII) collected? [ ] Yes [X] No
2. If Yes, is the information that will be collected included in records that are subject to the
Privacy Act of 1974? [ ] Yes [X] No [ ] Not Applicable

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3. If Applicable, has a System or Records Notice been published?
[ ] Yes [ ] No [X] Not Applicable
Gifts or Payments:
Is an incentive (e.g., money or reimbursement of expenses, token of appreciation) provided to
participants? [ ] Yes [X] No
BURDEN HOURS
Category of Respondent
Credit Unions
Banks
Service providers
Broker-dealers
Money transmitters doing open network transfers
Totals

Number of
Respondents
12
12
8
4
4
40

Participation
Time
5 hours
5 hours
5 hours
5 hours
5 hours
/////////////

Burden
60 hours
60 hours
40 hours
20 hours
20 hours
200 hours

FEDERAL COST: This collection of information will not result in the Bureau incurring any
new or additional costs. However, several CFPB employees in the Division of Research,
Markets and Regulations will spend focused time on the information collection effort.

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If you are conducting a focus group, survey, or plan to employ statistical methods, please
provide answers to the following questions:
The selection of your targeted respondents
1. Do you have a customer list or something similar that defines the universe of potential
respondents and do you have a sampling plan for selecting from this universe?
[X] Yes
[ ] No
If the answer is yes, please provide a description of both below (or attach the sampling plan)? If
the answer is no, please provide a description of how you plan to identify your potential group of
respondents and how you will select them?
The Bureau will identify insured depository institution respondents from call reports filed by
such institutions. The Bureau will then stratify the universe by size (measured by total assets)
into four strata (weighted by assets) and select respondents from each size stratum randomly, but
also taking into account what the Bureau knows about potential respondents (e.g. the Bureau will
not select banks without consumer-facing retail operations and the Bureau may first reach out to
potential respondents that have previously expressed some interest in communication with the
Bureau but otherwise are random). The Bureau will make size-specific assumptions about the
sample inclusion rate (which measures the share of entities that are .remittance transfer
providers) and the response rate. If, with these assumptions, the Bureau ends up with a larger
than desired sample, the superfluous entities will be dropped randomly. If, on the other hand, the
Bureau ends up with a smaller than desired sample, additional entities will be added randomly.
The Bureau will proceed in a similar fashion for credit unions, but for credit unions size will be
measured by remittance transfer volume reported on the NCUA Call Report, and hence we will
not need to make assumptions about the inclusion rate.
For service providers, the Bureau will create a sample based on its understanding of the service
provider market and other research.
For broker-dealers, the Bureau will randomly select entities from registration lists provided by
the SEC.
For other remittance transfer providers who are not allowed to use the temporary exception, the
Bureau will create a sample based on its understanding of the market for open network transfers
among non-bank providers. The Bureau will make sure to include in the sample entities of
various sizes.
Administration of the Instrument
1. How will you collect the information? (Check all that apply)
[ ] Web-based or other forms of Social Media
[X] Telephone
[X] In-person
[ ] Mail
[ ] Other, Explain
2. Will interviewers or facilitators be used? [X] Yes [] No

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Please make sure that all instruments, instructions, and scripts are submitted with the
request.

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B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
This information collection does not employ statistical methods.
1. Respondent Universe and Selection Methods
Please see above the section titled “The selection of your targeted respondents”.
2. Information Collection Procedures
The information will be collected based on a structured interview method. Information providers
will be approached using the first attached letter that lays out the nature of the collection effort
although in some circumstances it may be more appropriate to approach an institution by
telephone. In such instances, the attached letter will be used as a script. Volunteer respondents
will be provided with the second letter and a list of potential questions (attached) at the time of
scheduling an oral interview. Respondents will be requested to provide written responses to the
interview questions prior to their oral interview. Depending on the amount of information that
respondents provide in writing, the oral interview will be conducted as a follow-up or as standalone interview. The specific questions asked in any particular oral interview may be tailored to
the concerns and questions that respondents raise.
3. Methods to Maximize Response Rates and Address Issues of Non-Response
This collection of information will not employ statistical methods and, therefore, issues of nonresponse and non-response bias analyses are not applicable. It is worth noting, however, that the
Bureau will only seek responses from institutions that agree to participate.
4. Testing of Procedures or Methods
Not applicable.
5. Contact Information for Statistical Aspects of the Design
Methodologies are consistent with collections of information approved under this generic
clearance.

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