Pub. 2 2012-2013 Issue 3

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S November • December 2012 15 Rothgerber Johnson & Lyons LLP Banking Group Creating Solutions Since 1903 Robert S. Arthur, Jr. Justin H. Boyd Tennyson W. Grebenar Stephen T. Johnson William P. Johnson Kevin M. Kelly David P. Kunstle Lindsay L. McKae Mark A. Meyer Bruce N. Warren Karen L. Witt Denver · Colorado Springs · Casper UÊ vvˆˆ>ÌiÊ/À>˜Ã>V̈œ˜Ã UÊ ÃÃi̇ >Ãi`Ê ˆ˜iÃʜvÊ Ài`ˆÌ UÊ >˜ŽÊ"«iÀ>̈œ˜Ã UÊ À>˜V…Ê >˜Žˆ˜} UÊ œ“«ˆ>˜ViÊ>˜`Ê ˆÃVœÃÕÀi UÊ œ˜ÃՓiÀÊ ˆ˜>˜Vi UÊ Ài`ˆÌÊ œVՓi˜ÌÊ À>v̈˜}Ê>˜`Ê ,iۈiÜ UÊ Ài`ˆÌœÀ¿ÃÊ,ˆ}…ÌÃÉ >˜ŽÀÕ«ÌVÞ UÊ iÊ œÛœÊ ˆ˜>˜Vˆ>Ê ˜Ã̈ÌṎœ˜ÃÊ …>ÀÌiÀà UÊ >V̜Àˆ˜} UÊ œÀiVœÃÕÀiÃÊ>˜`Ê œiV̈œ˜Ã UÊ œ`ˆ˜}Ê œ“«>˜ÞÊ œÀ“>̈œ˜Ã UÊ i˜`iÀÊ ˆ>LˆˆÌÞ UÊ i˜`ˆ˜}Ê ˆ“ˆÌÊ `ۈVi UÊ iÛiÀ>}i`Ê VµÕˆÃˆÌˆœ˜Ã UÊ ˆÌˆ}>̈œ˜ UÊ œ>˜Ê"Àˆ}ˆ˜>̈œ˜ÃÊ>˜`Ê œ`ˆvˆV>̈œ˜Ã UÊ œ>˜Ê,iÃÌÀÕVÌÕÀˆ˜} UÊ iÀ}iÀÃÊ>˜`Ê VµÕˆÃˆÌˆœ˜Ã UÊ iÜÊ*Àœ`ÕVÌÊ iÛiœ«“i˜Ì UÊ *ÀœiVÌÊ ˆ˜>˜Vi UÊ ,iV>«ˆÌ>ˆâ>̈œ˜ UÊ ,i}Տ>̜ÀÞÊ `ۈVi UÊ ,i}Տ>̜ÀÞÊ ˜vœÀVi“i˜ÌÊ ivi˜Ãi UÊ , "Ê ˆÃ«œÃˆÌˆœ˜ UÊ -̜VŽÊ"vviÀˆ˜}à UÊ -ÌÀ>Ìi}ˆVÊ*>˜˜ˆ˜} UÊ -ÕLV…>«ÌiÀÊ-Ê œÀ«œÀ>ÌiÊ ,iÃÌÀÕVÌÕÀˆ˜} UÊ 1˜ˆvœÀ“Ê œ““iÀVˆ>Ê œ`i UÊ 1ÃiʜvÊ -"*à Nationally recognized for our corporate, regulatory, and litigation practices for community banks 303.623.9000 · www.rothgerber.com Prime Time Investments Group, LLC Acquisition of Investment Opts, LLC Parent holding company of Rothgerber Johnson & Lyons LLP represented Investment Opts, LLC August 2012 the sender is deemed to be in the state where the account is located. A designated recipient is a person the sender specifies, and can be either a natural person or an orga- nization. Note that the same person could be both the sender and the designated recipient. How do I know if my bank is a “RTP?” An RTP is a person that provides remittance transfers for a consumer “in the normal course of its business.” The safe harbor included in the Amendment provides that a bank or other entity that provides 100 or fewer remittance transfers in the previous year AND provides 100 or fewer remittance transfers in the current calendar year would not be an RTP. If a person exceeds more than 100 remittance transfers in a current calendar year, and provided fewer than 100 remittance transfers in the prior calendar year, then the person has a “reasonable period of time” to comply (not to exceed 6 months). The grace period begins to run on the date of the 101st remittance transfer. This means that it is important for a bank that wishes to take advantage of the safe harbor to begin to identify and count remittance transfers in 2012. If a bank makes more than 100 remit- tance transfers in 2012, it will not meet the safe harbor in 2013. What is required if my bank is an RTP? The compliance requirements for the Rule are detailed and somewhat complex, and include some information that may not be readily available to a bank. Very briefly, the Rule provides: • The RTP must provide clear and conspicuous disclosures in retainable format (unless delivered orally or on a mobile device), in the language in which the RTP advertises the service;  Remittance Transfer Rule  continued on page 16 The Rule is very complex, and the risks are potentially significant, especially for smaller entities. The CFPB promises that a small business compliance guide is in the works.