On April 25, 2019, the CFPB issued a “Request for Information” (RFI) on its remittance rule.
Implemented a few years ago, the Remittance Rule has fairly strict requirements for companies which send international money transfers - known as “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.
In their request, the CFPB is requesting information on two main parts of the Remittance Rule. From the CFPB announcement:
“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.”
Comments will be accepted for 60 days once the request for information is published in the Federal Register.
The full request for information can be found here.
