CFPB issues RFI on Remittance Rule
On April 25, the CFPB issued a Request for Information (RFI) on two aspects of the Remittance Rule, which took effect in 2013, and requires financial companies handling international money transfers, or remittance transfers, to disclose to individuals transferring money information about the exact exchange rate, fees, and the amount expected to be delivered. The RFI seeks feedback on (i) whether to propose changing the number of remittance transfers a provider must make to be governed by the rule, as well as the possible introduction of a small financial institution exception; and (ii) a possible extension of a temporary exemption to the Rule set to expire July 21, 2020, that allows certain insured institutions to estimate exchange rates and certain fees they are required to disclose (the RFI states that the EFTA section 919 expressly limits the length of the temporary exemption and does not authorize the CFPB to extend the term beyond the July 21 expiration date unless Congress changes the law). The RFI also seeks feedback on the Rule’s scope of coverage, including whether the Bureau should change a safe harbor threshold that allows persons providing 100 or fewer remittance transfers in the previous and current calendar year to be outside of the Rule’s coverage. Additionally, the RFI includes a consideration of issues discussed in the Bureau’s assessment of the Rule, which examined if the Rule had been effective in achieving its goals. Comments on the RFI are due 60 days after publication in the Federal Register.
Separately, on April 24, the CFPB released a revised assessment report of its Remittance Rule to “correct an understatement of the dollar volume of remittance transfers by banks in the original report,” which increases the share of the remittance dollars transferred by banks. The Bureau notes that the correction does not affect the report’s conclusions. (See previous InfoBytes coverage of the October 2018 assessment report here.)