As part of its policy response to the coronavirus pandemic, the Consumer Financial Protection Bureau today said it would provide relief to depository institutions after the scheduled July 20 expiration of a key exception in its remittance rule. The bureau said its goal was to minimize disruptions in consumers’ ability to make cross-border remittance transfers, especially amid the economic turbulence individuals are facing.
“For remittances that occur on or after July 21, 2020, and before January 1, 2021, the Bureau does not intend to cite in an examination or initiate an enforcement action in connection with the disclosure of actual third-party fees and exchange rates against any insured institution that will be newly required to disclose actual third-party fees and exchange rates after the temporary exception expires,” the CFPB said.
The bureau said it expects to finalize in May an American Bankers Association-supported proposal that would provide two permanent exceptions, but since some depository institutions “may have to commence disclosing actual third-party fees and exchange rate information” by July 21 under the rule, today’s relief will help banks focus on pandemic response now and have more time for compliance. The current exception allows depository institutions to estimate certain fees and exchange rates when making disclosures to their customers, rather than actual fees and rates that may not be feasible to determine.