The Consumer Financial Protection Bureau has issued a request for information seeking input on potential changes to its remittance rule, which established requirements for companies sending international money transfers on behalf of consumers. The CFPB is considering whether to raise the volume threshold that exempts certain providers from the rule’s requirements and possibly incorporating a small financial institution exemption.
As part of the RFI, the bureau is seeking comments on a provision in the rule granting a temporary exception allowing sending institutions to estimate the exchange rate and certain fees that must be disclosed. The exception—which many banks have relied on since the rule took effect—is set to expire in July 2020. The bureau noted in its request that it does not have the statutory authority to extend it beyond that date.
The American Bankers Association has long advocated for changes to the remittance rule. In previous comments, the association urged the CFPB to continue allowing banks to estimate these fees, pointing out that it is not always possible for banks to obtain exact pricing information. Comments on the proposal are due 60 days after publication in the Federal Register.