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CFPB updates remittance transfer examination procedures

Agency Rule-Making & Guidance CFPB Remittance Transfer Rule Examination Regulation E EFTA

Agency Rule-Making & Guidance

Recently, the CFPB updated its remittance transfer examination procedures to reflect the latest amendments to Regulation E (EFTA’s implementing regulation), Subpart B, as of May 2020. The updates are reflected within the Bureau’s Supervision and Examinations Manual. The updated procedures outline practices for examiners when evaluating institutions that provide remittances in the normal course of business to individuals and businesses in foreign countries. “Examiners should complete a risk assessment, conduct necessary scoping, and use these procedures, in conjunction with the compliance management system review procedures, to conduct a remittance transfer examination,” the Bureau stated. The procedures specify four objectives for remittance transfer examinations: (i) to assess the quality of a regulated entity’s compliance risk management systems in its remittance transfer business; (ii) to identify acts or practices that materially increase the risk of federal consumer financial law violations, as well as associated harm to consumers in connection with remittance transfers; (iii) to gather facts to help determine whether a supervised entity engages in acts or practices in connection with remittance transfers that are likely to violate federal consumer financial law; and (iv) to determine, in accordance with CFPB internal consultation requirements, whether a federal consumer financial law has been violated and whether it is appropriate to take further supervisory or enforcement action.

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