CFPB issues request for information on remittance rule

cfpb-logoThe CFPB issued a request for information regarding potential regulatory changes to the bureau’s remittance rule.

The remittance rule imposes requirements on institutions and companies that 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 RFI seeks information on the following two specific areas of the 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.

To review or comment on the RFI, visit the CFPB’s website.

The bureau also published a revised version of the remittance rule assessment report. The original report understated the approximate dollar volume of remittances made by depository institutions.

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