True or False: Funds transfers governed by Regulation E or the Automated Clearinghouse rules are covered by the Travel Rule.

The assertion that funds transfers governed by Regulation E or the Automated Clearinghouse (ACH) rules are covered by the Travel Rule is false. The Travel Rule, established under the Bank Secrecy Act, specifically applies to funds transfers that involve a financial institution sending or receiving funds for a customer. It mandates that certain information about the sender and the recipient be collected and passed along with the transaction.

Regulation E primarily governs electronic funds transfers, such as those made with debit cards and through online banking services, ensuring consumer protections and defining the responsibilities of financial institutions. Similarly, the ACH network facilitates direct deposit, bill payments, and other electronic transactions. However, neither Regulation E nor ACH rules encompass international wire transfers or follow the same regulatory requirements as the Travel Rule.

Thus, the correct answer highlights the specific regulatory requirements associated with the Travel Rule, which do not overlap with the regulations governing Regulation E and ACH transactions.