CFPB Will Delay and Tweak Remittance Rule (Misc News: November 28, 2012)
The CFPB announced its plan to make "certain limited adjustments" to its recent final rule on international money transfers – also known as remittances.
The list of expected changes reflects all but one adjustment that CUNA had recommended during several meetings with the bureau, according to CUNA News Now.
In addition to the delay, there are three areas of proposed changes to the final rule:
- One will address what should happen if a consumer provides an incorrect account number for a transfer and how remittance providers must disclose certain third-party fees and foreign taxes.
- The disclosure of certain foreign taxes and third-party fees; and
- The disclosure of sub-national, foreign taxes.
The CUNA recommendation not addressed is that of a safe harbor exemption. CUNA recommended that the CFPB provide a safe harbor from the final rule to exempt certain credit unions and other entities from the definition of a remittance transfer provider that provide remittance transfers in the ordinary course of business if the entity provides a number of transfers below a safe harbor threshold.
The agency said Tuesday that it expects to extend the effective date of the remittance rule until 90 days after the adjustments are made final.
"We recognize that remittance providers may need time to make sure they're in compliance with the rule. We're expecting the new implementation date to be during spring 2013, and will keep you updated," the CFPB said in a note on its website.