The CFPB revised its final remittance transfer rule to exempt institutions that do not provide remittances in the “normal course of business”—which the bureau defines as those making 100 or fewer cross-border transactions a year. The revised rule also provides additional guidance for transfers scheduled in advance.
The new threshold is an increase over the bureau’s originally proposed threshold of 25 transfers per year, which ABA and others argued was far too low. ABA experts said the final threshold is still too low and could result in many banks refusing to offer remittance transfer services because of the difficulty and expense of meeting the compliance requirements.
The rule—mandated by the Dodd-Frank Act—requires remittance-transfer providers to disclose information on fees, the exchange rate, and the amount that will be received. This can be problematic for banks using open networks, since it requires them to provide information they do not have and cannot readily obtain.
Because significant compliance problems remain, ABA continues to support congressional efforts to have the CFPB extend the rule’s effective date, which is currently set for February 7, 2013. ABA and other trade groups last month urged House members to sign onto a letter urging the bureau to delay the rule until February 2015.
Read the final rule.
Read ABA’s comment letter on the original proposed exemption.