The Consumer Financial Protection Bureau updated its rule on international money transfers on Tuesday in order to simplify the process for institutions that handle fewer than 100 fund transfers per year.
The new rule is set to take effect Feb. 7 and implements Dodd-Frank-mandated protections requiring all money transfer providers to disclose all fees, as well as the exchange rate and amount to be received by the recipient, upfront. The disclosures must be provided at the time of transfer and when payment has been received. The rule further enhances error resolution and the consumer’s right to cancel the transfer.
“We recognize that in regulations, one size does not necessarily fit all,” Richard Cordray, the director of the CFPB, said. “The final remittance rule will protect the overwhelming majority of consumers while making the process easier for community banks, credit unions and other small providers that do not send many remittance transfers.”
After receiving comments on the rule, the CFPB concluded that institutions that conduct fewer than 100 remittance transfers per year should not be subject to new money transfer requirements. Should an institution that conducted fewer than 100 transfers the previous year conduct more than 100 in the current year, the rule allows for a transition period to allow the institution to come into compliance.