The CFPB finalized a rule allowing it to supervise larger nonbank international money transfer providers, according to the Dodd-Frank Act's expansion of the Electronic Fund Transfer Act.
In October 2013, the CFPB’s Remittance Rule, which implements these new protections, went into effect for both banks and nonbanks that are remittance transfer providers.
The CFPB, which already assesses the largest banks’ and credit unions’ compliance with the Remittance Rule, will also supervise any nonbank international money transfer provider that provides more than 1 million international money transfers annually.
The Bureau estimates that nonbank providers transfer approximately $50 billion annually through about 150 million individual international money transfers.
The rule will oversee about 25 of the largest providers in the market when it takes effect on December 1, 2014.