Accuity, a part of BankersAccuity, the leading provider of global payment routing data and anti-money laundering (AML) screening software and services, today released a new industry perspective examining potential challenges banks face in light of Section 1073 of the Dodd Frank Act.
The report, part of Accuity’s ongoing Viewpoint series, is entitled “Dodd Frank’s Remittance Transfer Rules Could Mean a New Look at Payment Workflow for Banks” and tackles the effect of new protections on remittance transfers, including disclosures, error resolution and cancellation rights for consumers who send remittance transfers to a foreign country from a U.S. bank.
These remittance transfer rules will add complexity and cost for most financial institutions, including a prepayment disclosure at the time the customer initiates a transfer transaction detailing fees, taxes and costs as well as requiring a written receipt within twenty four hours. A bank may also have to absorb costs if a payment has to be refunded or resent. As a result, banks that wish to minimize the risk and costs of Section 1073 must get payment instructions right at the point of customer contact, and not expect to be able to repair the payment instructions later—or pass on the cost.
“Together, the new rules place much greater pressure on the front offices of banks, money service business and payment agents to ensure the customer has supplied valid and active bank routing details for each and every transaction, requiring more efficient payment processing and validation policies and procedures. For banks that accept the challenge, however, finding better, more efficient payment processes can well become a competitive advantage.”
Click on the link to access the full Viewpoint article “Dodd Frank’s Remittance Transfer Rules Could Mean a New Look at Payment Workflow for Banks”. To stay in touch with Accuity follow @AccuityInc on Twitter or join us on LinkedIn.
To find out more and learn about payment solutions, data and services from Accuity, visit www.accuity.com/payments.
About BankersAccuityOwned by one of the world’s leading business to business publishers, Reed Business Information and part of Reed Elsevier, BankersAccuity sets the global standard for payment efficiency and compliance solutions. It includes Bankers Almanac and Accuity, premier data services that have been providing solutions to banks and businesses worldwide for over 175 years.
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