The treasury services department of JPMorgan Chase is currently in the process of developing a consumer cross-border payment system to assist clients in preparations for compliance with Rule 1073 of the 2010 Dodd-Frank Act.
The rule applies to all cross-border electronic transfers and payments initiated by consumers, commonly referred to as remittance or money transfers, and is set to take effect in February 7, 2013, according to The Asset.
Under the rule, any U.S.-based consumers sending international money transfers must receive certain pre-payment disclosures and post-transaction receipts from the financial institution responsible for sending the transfer. The disclosures will include information related to fees, foreign currency exchange rates and taxes.
JPMorgan’s solution will assist banks in providing the necessary disclosures and receipts. The firm is collecting tax and fee information, which will be stored in an interactive database that clients will be able to access through other product solutions.
“The evolving global regulatory situation presents a hosts of challenges for financial institutions that must comply with changing collateral and custody requirements,” Dinkar Jetley, the head of Worldwide Securities Services at JPMorgan, said, PYMNTS.com reports. “As these requirements affect more and more financial institutions in all regions, a firm and global footprint is the best partner in helping to understand and comply with the rules. JPMorgan is a global bank recognized for its expertise, and we will continue to provide counsel and offer the products and services that our clients and financial institutions generally require.”