Except as otherwise provided, for purposes of this subpart, the following definitions apply:
(a) â€œAgentâ€ means an agent, authorized delegate, or person affiliated with a remittance transfer provider, as defined under State or other applicable law, when such agent, authorized delegate, or affiliate acts for that remittance transfer provider.
(b) â€œBusiness dayâ€ means any day on which the offices of a remittance transfer provider are open to the public for carrying on substantially all business functions.
(c) â€œDesignated recipientâ€ means any person specified by the sender as the authorized recipient of a remittance transfer to be received at a location in a foreign country.
(d) â€œPreauthorized remittance transferâ€ means a remittance transfer authorized in advance to recur at substantially regular intervals.
(e) Remittance transfer – (1) General definition. A â€œremittance transferâ€ means the electronic transfer of funds requested by a sender to a designated recipient that is sent by a remittance transfer provider. The term applies regardless of whether the sender holds an account with the remittance transfer provider, and regardless of whether the transaction is also an electronic fund transfer, as defined in Â§ 1005.3(b).
(2) Exclusions from coverage. The term â€œremittance transferâ€ does not include:
(i) Small value transactions. Transfer amounts, as described in Â§ 1005.31(b)(1)(i), of $15 or less.
(ii) Securities and commodities transfers. Any transfer that is excluded from the definition of electronic fund transfer under Â§ 1005.3(c)(4).
(f) Remittance transfer provider – (1) General definition. â€œRemittance transfer providerâ€ or â€œproviderâ€ means any person that provides remittance transfers for a consumer in the normal course of its business, regardless of whether the consumer holds an account with such person.
(2) Normal course of business – (i) Safe harbor. For purposes of paragraph (f)(1) of this section, a person is deemed not to be providing remittance transfers for a consumer in the normal course of its business if the person:
(A) Provided 500 or fewer remittance transfers in the previous calendar year; and
(B) Provides 500 or fewer remittance transfers in the current calendar year.
(ii) Transition period – coming into compliance. Beginning on July 21, 2020, if a person that provided 500 or fewer remittance transfers in the previous calendar year provides more than 500 remittance transfers in the current calendar year, and if that person is then providing remittance transfers for a consumer in the normal course of its business pursuant to paragraph (f)(1) of this section, the person has a reasonable period of time, not to exceed six months, to begin complying with this subpart. Compliance with this subpart will not be required for any remittance transfers for which payment is made during that reasonable period of time.
(iii) Transition period – qualifying for the safe harbor. If a person who previously provided remittance transfers in the normal course of its business in excess of the safe harbor threshold set forth in this paragraph (f)(2) determines that, as of a particular date, it will qualify for the safe harbor, it may cease complying with the requirements of this subpart with respect to any remittance transfers for which payment is made after that date. The requirements of the Act and this part, including those set forth in Â§Â§ 1005.33 and 1005.34, as well as the requirements set forth in Â§ 1005.13, continue to apply to transfers for which payment is made prior to that date.
(g) â€œSenderâ€ means a consumer in a State who primarily for personal, family, or household purposes requests a remittance transfer provider to send a remittance transfer to a designated recipient.
(h) Third-party fees. (1) â€œCovered third-party fees.â€ The term â€œcovered third-party feesâ€ means any fees imposed on the remittance transfer by a person other than the remittance transfer provider except for fees described in paragraph (h)(2) of this section.
(2) â€œNon-covered third-party fees.â€ The term â€œnon-covered third-party feesâ€ means any fees imposed by the designated recipient’s institution for receiving a remittance transfer into an account except if the institution acts as an agent of the remittance transfer provider.