CFPB Proposes Changes to Remittance Rule
WASHINGTON — The Consumer Financial Protection Bureau on Friday specified changes it would like to make to a rule designed to increase regulation of international money transfers.
The amendments were primarily meant to ease the burden of disclosures of foreign taxes and fees imposed on a bank for receiving international money transfers. While the remittance rule finalized in February requires providers to disclose foreign taxes, the amendment would not require a report on foreign taxes of regional, provincial, state or other local governments. Additionally, in the case where a consumer has given incorrect account information, the proposed amendment relieves the provider from bearing the cost of unrecovered funds so long as it has proven false account information and attempted to recover those funds.
"Today's proposal will ensure consumers have continued access to remittance transfer services while making compliance easier for remittance transfer providers," CFPB Director Richard Cordray said in the release.
The bureau said last month that it would clarify the proposal after some financial institutions raised "practical challenges" in implementing the new rule. This was the second round of proposals meant to ease the cost and burden of the remittance rule. In August, the CFPB first revised the rule to exclude banks that made less than 100 remittances a year.
On Friday, the CFPB also proposed extending the implementation period until 90 days after it issues a revised final rule. The comment period for the extended time closes 15 days after the proposed amendments are published in the Federal Register. Comments on the rest of the amendments close 30 days after publication in the Federal Register.