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

The correct answer is that funds transfers governed by Regulation E or the Automated Clearinghouse (ACH) rules are not covered by the Travel Rule. The Travel Rule, which is a requirement under the Bank Secrecy Act, mandates that financial institutions collect and transmit specific information about the sender and the recipient of certain funds transfers, primarily those that exceed a threshold of $3,000.

The Travel Rule applies primarily to wire transfers and certain types of payment systems, particularly those used for international transactions. However, transactions that fall under Regulation E, which focuses on electronic funds transfers including consumer payments, and ACH transactions, generally do not require the same type of information to be transmitted as is mandated under the Travel Rule.

This distinction is significant because it outlines the regulatory framework that dictates what types of funds transfers require additional information for compliance. Understanding this framework helps ensure that financial institutions adhere to the necessary regulations while processing different types of transactions.