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Updates to remittance transfer rule resources and a correction to the rule

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We strive to make financial markets work for both consumers and the entities we regulate. Critical to that goal is making sure that businesses – both small and large – have what they need to understand and comply with our new regulations, which are designed both to help consumers and make a fair playing field for companies that play by the rules.

Today, we’re releasing an update of our small business guide for our international electronic money transfers rule (also known as the remittance rule). This updated guide reflects the most recent changes to the rule and will make it easier to understand the requirements, which will take effect on October 28, 2013. Although the guide is not a substitute for the rule, it highlights issues that businesses, in particular small businesses and those that work with them, should consider while implementing the new requirements.

Along with the guide, we are releasing a video that gives an overview of the rule, the recent changes, and our responses to questions raised regarding interpretation and implementation of the rule.

These versions of the guide and video replace those versions released in late 2012 and which are now out-of-date.

We are also making a technical correction to the remittance rule to make a clarification and correct an error to the May 22, 2013 amendments.

More compliance resources

We have some more information to help industry understand and comply with the new requirements, including:

  • Consumer Watchdog

    There are quite a number of small banks and credit unions that have decided they will no longer offer this service to their customers/members because of the cost to comply with all of these disclosure requirements and the high risk and liability issues that will come with those requirements. Ironically, many of them plan on telling their customers/members to use the private remittance services instead, and it was those private remittance providers that engaged in the abuses that brought about this rule. By failing to exempt transfers where the receiving institution is not owned, affiliated or bound by agreement to the sending institution, the CFPB will effectively eliminate a large number of honest service providers and leave less choice for consumers.

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