Regulatory changes

CFPB extends comment period on remittance rule change

CFPB_LogoThe CFPB extended the comment period earlier this week for proposed changes to its international money transfer rule by an additional 10 days to June 6.

The proposal, which originally had a comment period that would have ended May 27, would extend a reporting exception for credit unions and other smaller remittance providers for an additional five years to July 21, 2020.

Under the Dodd-Frank Act, banks and credit unions are allowed to estimate third-party fees and exchange rates when providing remittance transfers if they are unable to determine the exact amounts.

β€œIt is critical that we are able to protect consumers who send money abroad and that we preserve access to such services,” CFPB Director Richard Cordray said last month when the agency announced the proposed revisions. β€œ[The] proposal would allow banks and credit unions to have more time to resolve certain implementation challenges while maintaining these important, new consumer protections.”

Earlier this month, the National Association of Federal Credit Unions (NAFCU) and The Clearing House Association (TCH), along with other financial trade groups, urged the CFPB to allow at least 60 days to comment on the clarifications.

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