News Release: New Rules for Money Transfers Take Effect Monday

Posted on Oct 23, 2013 in Main

Division of Financial Institutions



Oct. 23, 2013

New Rules for Money Transfers Take Effect Monday
More than $2.3 Billion in Transfers Recorded in 2012

HONOLULU — The State of Hawaii is reminding money transmitters and consumers across the state that new rules for the millions of transfers made each year begin Oct. 28, 2013. The changes are in accordance with the federal Dodd-Frank Act that was designed to provide more consumer protections, including enhanced implementation of the Electronic Funds Transfer Act.

A “remittance transfer” is an electronic transfer of money from a consumer in the United States to a person or business in a foreign country, whether by a wire transfer, an automated clearinghouse (ACH) transaction, or another method.

In 2012, there were more than 9.6 million money transfers recorded in Hawaii that totaled more than $2.3 billion. There are currently 46 licensed money transmitters with the state with more than 900 delegated operators.

One of the required changes is that transmitters must begin providing contact information for the state Department of Commerce and Consumer Affairs’ (DCCA) Division of Financial Institutions (DFI) and the federal Consumer Financial Protection Bureau on receipts.

The new rules also require the disclosure of:
· Fees and taxes imposed on the remittance transfer
· Applicable exchange rate
· Currency amount to be received by the recipient
· Estimates on remittance transfer services
· Error resolution rights for senders
· Creation of standards for resolving errors and record keeping rules
· Creation of rules regarding appropriate cancellation and refund policies
· Acts of Agents

Emails with reminder flyers were sent to licensees earlier this month.
For more information, see the DFI website at:

DFI ensures the safety and soundness of state-chartered and state-licensed financial institutions, and ensures regulatory compliance by state-licensed financial institutions, escrow depositories, money transmitters, mortgage servicers, mortgage loan originators and mortgage loan originator companies by fairly administering applicable statutes and rules in order to protect the rights and funds of depositors, borrowers, consumers and other members of the public.
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Media Contact:
Brent Suyama
DCCA Communications Officer
[email protected]