2025 Regulatory Summit

NYAG Argument

• Wire process = three steps:

– &XVWRPHU ĺ &LWLEDQN DFFRXQW debit/payment order).

– &LWLEDQN ĺ %HQHILFLDU\¶V EDQN (interbank wire, usually Fedwire). – %HQHILFLDU\¶V EDQN ĺ %HQHILFLDU\ (account credit). • EFTA carve-out applies only to step 2 (interbank wire). • Fraud through online portals makes step 1 consumer-facing and covered. • CFPB has endorsed this interpretation.

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Citibank and Industry Arguments

• Wires excluded “from start to finish.” • Statutory carveout: transfers “on behalf of a consumer” = whole wire process. • EFTA aimed at everyday consumer transfers. • Wires don’t directly involve consumers once initiated. • Courts and regulators have long treated wires as categorically excluded. • Reversing course would disrupt settled practice and impose massive new liabilities transfers.

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