Dodd-Frank cross-border payment rules to be major compliance challenge, say banks
29 January 2013 | 8134 views | 1
US banks think that new regulations on cross-border transfers will hit the payments business hard without benefiting consumers, according to a poll from vendor Fundtech.
Dodd-Frank section 1073 mandates transparency around costs, timing and repudiation for consumer cross-border transfers.
However, a survey of banks shows that nearly 90% expect the rule will have a negative impact on their payments businesses.
When asked whether the regulation will deliver the intended benefit to the consumer, 52% say it would have more of a negative impact than a positive one. Only two per cent of respondents felt that the regulation would deliver the intended benefits.
Dodd-Frank 1073 mandates that consumers are given 30 minutes to cancel cross-border transactions yet only two per cent of banks state that consumers rescinding orders is a frequent occurrence. Of those that know the frequency, 43% say consumers never rescind orders.
Tony Salamone, SVP, US banking product management, Fundtech, says: "Our recent survey validates what we have been hearing from our clients - Dodd-Frank 1073 will be a major compliance challenge in 2013."