Last week, the CFPB proposed additional revisions to its international remittance transfer rule under Regulation E. The revisions would extend an exception that explicitly allows federally insured financial institutions to estimate third-party fees, as well as any exchange rate that will apply to the transfer if certain conditions are met. The CFPB is proposing to extend the temporary exception by five years from July 21, 2015 to July 21, 2020.
Conditions to qualify for the exception include:
1. The provider is an insured depository institution or credit union;
2. The remittance transfer is sent from the sender’s account with the provider; and
3. The provider cannot determine the exact amounts for reasons outside of its control.
MCUL & Affiliates is in the process of drafting a request for comment on this topic.