Regulation E

Regulation E: Your Guide to Safe and Transparent International Money Transfers

What is Regulation E?

Regulation E is a set of rules established by the Consumer Financial Protection Bureau (CFPB) in the United States that protects consumers who send international money transfers through licensed money service businesses (MSBs). It ensures transparency, fairness, and error resolution in these transactions.

Who does it apply to?

Regulation E applies to:

  • Consumers in the United States: This includes individuals sending money to people or businesses in other countries.
  • Licensed Money Service Businesses (MSBs): These are businesses authorized to transfer money internationally, such as Western Union, MoneyGram, and bank international transfer services.

What are the key protections of Regulation E?

  • Disclosures: Before you initiate a transfer, you must be informed of the exact fees and exchange rates that will apply, as well as the estimated arrival time of the funds.
  • Error Resolution: If you make a mistake or encounter an error with your transfer, you have the right to report it and have the issue investigated and resolved promptly.
  • Cancellation Rights: You have the right to cancel your transfer within a certain timeframe, typically 24 hours, after initiating it.
  • Dispute Resolution: If you have a problem with your transfer that cannot be resolved directly with the MSB, you can file a complaint with the CFPB.

How does Regulation E benefit consumers?

  • Transparency: You know exactly how much your transfer will cost and when your recipient will receive the funds.
  • Peace of mind: You can be confident that your money is being transferred safely and securely.
  • Empowerment: You have the right to correct mistakes and cancel transfers if necessary.
  • Accountability: MSBs are held accountable for complying with Regulation E and providing fair and transparent services.

Examples of how Regulation E works:

  • Scenario 1: Sending money to family overseas:

You want to send $1,000 to your family in India. Before you confirm the transfer, Regulation E requires the MSB to disclose the following:

  • The exact amount your family will receive in Indian Rupees (INR) after accounting for fees and exchange rates.
  • The estimated arrival time of the funds.
  • Your right to cancel the transfer within 24 hours.
  • Scenario 2: Paying for online studies abroad:

You need to send Euros to cover your tuition fees for a course in France. The MSB must disclose the following information before you initiate the transfer:

  • The total cost of the transfer, including all fees and the exchange rate.
  • The estimated arrival time of the funds.
  • Your right to report any errors or delays with the transfer.

Additional Resources:

Remember:

Regulation E is there to protect you and ensure a safe and transparent experience when sending money internationally. Don’t hesitate to exercise your rights and seek help if you encounter any problems with your transfer.

By understanding and utilizing Regulation E, you can send money internationally with confidence, knowing your hard-earned cash is protected every step of the way.

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This page was last updated on December 30, 2023.

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