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5.1.5 General Provisions for Remittances, Transfers and Foreign Exchange

C 8/2020 STA Effective from 25/12/2020
  1. 5.1.5.1Licensed Financial Institutions may impose Fees on Consumers for transferring funds external to the Licensed Financial Institution. These Fees must be a fixed amount and not a percentage of the amount being transferred.
  2. 5.1.5.2Licensed Financial Institutions must inform the Consumer of the amount of their Fees before confirming the transfer of funds. The Consumer must be informed of the potential of Fees being charged by the receiving correspondent bank or financial institution. This Section is to be read in conjunction with Clause 2.1.5.5 of Article 2: Disclosure & Transparency.
  3. 5.1.5.3Licensed Financial Institutions must be transparent and disclose options for low cost services for remittances of funds and avoid excessive Fees that may limit use by low income Consumers.
  4. 5.1.5.4Licensed Financial Institutions must provide an official receipt of the transaction including details of all the Fees. Licensed Financial Institutions must ensure that the Consumers receive an official receipt for all the transactions in a manner that allows the Consumer to retain a record of the transaction details.
  5. 5.1.5.5Licensed Financial Institutions are responsible for validating the accuracy of payment instructions, specifically the International Bank Account Number (IBAN) and Bank Identifier Code (BIC), before completing the transfer of the funds.
  6. 5.1.5.6Licensed Financial Institutions must advise a Consumer within 2 complete business days of the return of funds by a correspondent bank or financial institution. The funds returned must be credited to the Consumer’s account as soon as received from the correspondent bank or financial institution. Where the Consumer does not have an account, the returned funds must be available in cash or by cashier’s cheque within the 2 complete business days. If Licensed Financial Institutions are required to undertake financial crime investigations, Licensed Financial Institutions are exempt from the 2 complete business days refund requirement.