CFPB Issues Request for Information on Remittance Rule
WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (Bureau) issued a Request for Information (RFI) on its Remittance Rule. The RFI includes a consideration of issues discussed in the Bureau’s assessment of the Rule, which examined if the Rule had been effective in achieving its goals.
The Remittance Rule imposes requirements on companies which send international money transfers, or remittance transfers, on behalf of consumers. Among its requirements, the Rule mandates that providers generally must disclose the exact exchange rate, the amount of certain fees, and the amount expected to be delivered to the recipient.
The Bureau is requesting information on two aspects of the Remittance Rule: First, the Bureau is asking for information to determine whether to propose changing the remittance transfer providers the Rule covers. Specifically, the Bureau is seeking information about the number of remittance transfers a provider must make to provide them in the normal course of business, and information on incorporating a small financial institution exception into the Rule.
Second, the Bureau is asking for information about the expiration of a temporary exception in the Rule that allows certain insured institutions to estimate the exchange rate and certain fees they are required to disclose when sending remittance transfers. The statutory provision authorizing the temporary exception expressly limits its length and does not provide the Bureau the authority to extend the exception beyond July 21, 2020. The Bureau will use the information in determining potential next steps, including considerations related to the expiration of the temporary exception.
The public will have 60 days to comment after the RFI is published in the Federal Register. The RFI is available at the following link: https://files.consumerfinance.gov/f/documents/cfpb_rfi_remittance-rule.pdf
The Consumer Financial Protection Bureau (CFPB) is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit www.consumerfinance.gov.