The Honorable Luis V. Gutierrez

U.S. House of Representatives

Washington, D.C. 20515-1304

Dear Mr. Gutierrez:

This responds to your letter to the Secretary requesting the views of the Department of the Treasury on your bill, H.R. 382, the "Wire Transfers and Disclosure Act of 1999." The bill would amend the Electronic Fund Transfer Act to require certain disclosures relating to exchange rates in transfers involving international transactions.

We share your concerns about the adequacy of current disclosure requirements for international money transfers. That is why the President endorsed the general concept of full disclosure of exchange rates and fees for international money transfers in announcing his financial privacy and consumer protection initiative on May 6. In that initiative, he proposed that financial institutions and money transmitting businesses that initiate international money transfers on behalf of consumers should disclose the exchange rate used in the transaction, the prevailing exchange rate, and all commissions and fees charged in connection with the transaction.

We would be pleased to work with you and your staff on the specific language of your bill to ensure that the legislation is consistent with the President's proposal and practical to implement.

The Office of Management and Budget has advised that there is no objection from the standpoint of the Administration's program to the submission of this report.

Sincerely,

/s/

Linda L. Robertson

Assistant Secretary

(Legislative Affairs and Public Liaison)