The National Association of Federal Credit Unions recently published resources to help credit unions comply with the CFPB’s rule on international remittance transfers that took effect earlier this week.
The final rule requires remittance providers to give consumers upfront information on the exchange rate, fees and taxes the sender will pay, as well as information on the amount to be received and the consumer’s right to cancel most transfers within 30 minutes at no additional cost. In general, errors must be reported within 180 days.
Resources for credit unions are available on NAFCU’s Compliance Blog, and the group also published a detailed description of the rule in its September issue of “Compliance Monitor.”
In crafting the final rue, the CFPB considered concerns from credit unions and took some of them into account by scaling back disclosures for foreign taxes. NAFCU said, however, that the final rule imposes several costly requirements that could force many credit unions to reduce their presence or leave the market.
The CFPB has also published resources for credit unions, including an updated small entity compliance guide, video/webinar on the final rule and a consolidated copy of the regulatory text and commentary.
The CFPB has launched a nationwide multimedia campaign to educate consumers who send international money transfers about the new protections.